Consumption driven by rising population and income levels
A view of Dubai Healthcare City. The region’s health care market is expected to grow by 12 per cent annually to $69.4 billion by 2018 compared to $39.4 billion last year, according to the report./
Image Credit: Atiq-Ur-Rehman/Gulf News
Dubai:
Health care consumption in the Gulf Cooperation Council (GCC) countries is set to grow with the rising population and income levels, according to Alpen Capital.
The region’s population is forecast to reach more than 50 million by 2020, according to Alpen Capital, quoting the International Monetary Fund (IMF). The number of people at the age of 65 and above is expected to rise from 1.2 million in 2015 to 14.2 million in 2050, resulting in higher demand for health care services.
Rising income levels and sedentary lifestyles have resulted in high levels of diabetes and obesity which has led to demand for specialised health care services, according to the GCC Healthcare Industry Report published by Alpen Capital.
“Rising affordability, lifestyle related diseases, the treatment of which is both costlier and lengthier, and increasing insurance penetration will ensure vigorous rise in health care spending in the GCC,” said Sanjay Vig, managing director of Alpen Capital, in a statement.
The region’s health care market is expected to grow by 12 per cent annually to $69.4 billion by 2018 compared to $39.4 billion last year, according to the report.
The Saudi Arabia market is likely to account for 58.2 per cent of the total in 2018, leading the GCC, followed by the UAE (18.1 per cent). Qatar and the UAE are expected to be the fastest growing regional markets in the next four years.
The UAE’s health care market is expected to reach $18.6 billion by 2018, from $10 billion in 2013, growing at a compound annual growth rate (CAGR) of 13.1 per cent.
The outpatient and inpatient markets are expected to account for 79 per cent and 21 per cent, respectively, of the overall market size.
Medical supply:
Large medical cities and facilities are being built across the region, and there are billions of dollars being invested to boost the supply of medical infrastructure and develop the quality of health care services, as per the report.
The demand for the number of hospital beds is set to reach 115,544 in 2018, an addition of 11,241 beds from 2013.
Medical tourism:
The UAE and Oman are shaping up as medical tourism destinations.
Dubai, for instance, aims to attract thousands of medical tourists from the GCC, Russia, South Asia and the CIS (Commonwealth of Independent States). The Dubai Healthcare Authority launched an initiative last month to attract Dh1.2 billion in revenue from patients and their families and position Dubai as a top medical tourism destination. By the end of the year, special packages will be rolled out for patients, which include the costs of treatment, visa, air ticket, and leisure activities for patients’ families.
The UAE’s medical tourism sector was valued at $1.69 billion in 2013 compared to $1.58 billion in the previous year, as per the report.
Challenges:
The GCC countries, in particular the UAE and Qatar, are facing high health care costs as a result of new medical technologies, better health care facilities and longer length of stay, according to the report.
Meanwhile, the quality of health care in the region is not at the same level as developed countries, which is why many patients choose to travel abroad for treatment.
Also, the region relies on foreign medical professionals as a result of the insufficient number of professionals in their countries.
source: http://www.gulfnews.com / Gulf News / Home> Business – General / by Staff Report / April 22nd, 2014
