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Falak Consulting report: GCC healthcare market to grow to $56bn by 2020

June 23, 2014 3:41 pm

According to a report published by Falak Consulting’s Research Department (FCRD), the GCC healthcare delivery market is estimated to grow to $56bn by 2020.

The report also states that with total healthcare spending in the GCC estimated at $46bn in 2012, there are strong opportunities available for the private sector, particularly through the development of PPP models.

This is because while healthcare expenditure is a significant burden on GCC governments, spending in the region is relatively low compared to OECD countries, which spend three times more. Such models will help ease spending by GCC governments, but it will also allow the private sector to provide the expertise needed, particularly with the growing treatment demand in certain areas such as cardiovascular diseases and psychiatric disorders.

According to the report, the majority of hospitals in the GCC provide general healthcare services, with a limited presence of specialized hospitals. The report identifies psychiatric disorders, cardiovascular diseases, neonatal disorders, diabetes and respiratory diseases as leading causes of disabilities in the region. The majority of hospitals in the GCC region provide general healthcare services in internal medicine, ENT and pathology as the major services with a limited presence of specialized hospitals. The low number of discharges seen in ailments like cardiovascular diseases, psychiatric disorders, neurology and urology indicate that a significant proportion of the population receives treatment outside the GCC region – meaning that there is scope to increase the presence of such single specialty hospitals in the region.

Commenting on FCRD’s findings, Suhail Algosaibi, Chairman, Falak Consulting, said, “Strengthening the healthcare delivery system in the GCC countries has been a topic of much discussion over the last decade. Though the region has seen a surge in expenditure for this sector, while governments continue to bear a significant burden, overall government spending continues to be low in comparison to OECD economies.”

Maniza Dewan, Principal Director, Falak Consulting, added, “The GCC healthcare market is estimated to grow even further, due to a number of reasons, including a rapidly growing population. Given this, and the relatively low spending on healthcare by the Gulf states, an ideal scenario would be the implementation of a PPP model, which would allow the private sector to gain from the opportunities available in this sector while easing the strain placed on the government. In other words, it is not a zero-sum game; both the private and public sectors can gain from the current situation in the GCC.”

The report looks at various issues including treatment demand, healthcare infrastructure, and market size. It also provides detailed reports on healthcare in each of the GCC states, thus providing various stakeholders with a comprehensive study on the sector. This report is part of a series of papers published by FCRD, covering a number of different sectors across the region.

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