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NMC Group, UAE

Health care in GCC. NMC Group, UAE. Healthcare in GCC – An Overview. 38. Overview – Healthcare Sector. H ealthcare market size GCC Countries and growth in the sector. Figures for the year 2007 indicate the total healthcare expenditure as US $ 18 Billion for the GCC Countries

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NMC Group, UAE

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  1. Health care in GCC NMC Group, UAE

  2. Healthcare in GCC – An Overview 38

  3. Overview – Healthcare Sector Healthcare market size GCC Countries and growth in the sector • Figures for the year 2007 indicate the total healthcare expenditure as US $ 18 Billion for the GCC Countries • As per a report published by McKinsey & Company, the healthcare spending in the GCC, will increase five folds to US $ 60 Billion by 2025 • Considering the past growth pattern in the healthcare sector the healthcare expenditure is speculated to reach US $ 25-28 Billion by 2018, though reports from other firms speculate a higher growth, a PE Investment firm (ALPEN Capital) the healthcare sector outlook is estimated to reach a market value of US $ 47-55 Billion by the year 2020, while the GCG speculates a healthcare expenditure of US $ 24 Billion by the year 2015 • The CAGR sums to a range of around 3-8%, as per the various reports

  4. Overview – Healthcare Sector Within the GCC Countries, Saudi Arabia and UAE constitute the major portion around 70-75% Saudi Arabia and UAE constitute a major portion of the healthcare market of the GCC countries, around 70-75%

  5. Overview – Healthcare Sector Hospital bed requirements in the GCC Countries :- • As per the GCG report their is a need of around 22,000 additional beds to be added in the GCC Countries by the year 2015, current beds 83,644 expected need 107,665 • As per McKinsey & Company, by the year 2025, GCC countries will need a total of around a 160,000 beds • As per the ALPEN CAPITAL report the additional requirment could reach 25,000 beds by 2020 • As per 2007 updated figures the current bed strength for GCC countries stands at around 75,000 beds to 84,000 beds as per various reports • As per the ALPEN CAPITAL report 75 hospitals are announced • As per the HOSPITAL BUILD 132 hospitals are announced

  6. Overview – Healthcare Sector The announced construction value of hospital projects make Saudi Arabia, UAE and Qatar to highly attractive markets As per the Hospital Build Update a total ot 132 hospitals are in pipeline with a total value of US $ 17,917 Million

  7. Key drivers and restraints for the healthcare industry GCC Countries Overview – Healthcare Sector DRIVERS RESTRAINTS • Acute shortage of human resources in the medical arena, governments have taken initiatives • Lower penetration of the private sector in most of the GCC Countries. • High capital intensive with lower rate of returns compared to other industries and sectors • Unstructured regulatory landscape for foreign investments. • Lack of trust in the local system.UAE spends around $ 2billion per annum for medical treatment abroad. • Demographic advantage, higher population growth, ageing population. • High risk factors, life style advantage, high prevalence of diabetes, obesity and cardio-vascular diseases. • Compulsory health insurance for expatriates and nationals, direction of most of the GCC Countries • Inadequacy of public healthcare delivery systems, governments are actively looking for private sector participation. • A high per capita income and comparable to developed economies

  8. Overview – Healthcare Sector Comparing health indicators of GCC Countries to developed economies A lower allocation for healthcare expenditure as a percentage of the GDP in the GCC Countries speculates probability and need to increase expenditure by the governments Health-care services are mostly offer by the public sector, inadequacy of these services indicates a potential increase of private participation in the healthcare sector

  9. GCC Market Potential Study GCC countries have per capita GDP similar to those of North American and European countries Source: IMF

  10. Overview – Healthcare Sector Comparing per capita healthcare expenditure GCC Countries to developed economies (In US $) The average per capita expenditure in the GCC healthcare increases (2007) to US $ 709, but is still far lower compared to the other regions and the international average of around US $ 2,256 Per capita expenditure on healthcare in Qatar (US $ 3.416, 2007) is nearly 5 times more than the GCC average of US $ 709

  11. Overview – Healthcare Sector

  12. Favorable demographic profile:- The GCC population growth has averaged 3% per annum over the past five years, among the highest growth rates in the world - This will generate significant healthcare demand

  13. Acc. to re-insurer Swiss Re, GCC per capita insurance stood at US$ 129 in 2007, significantly lower than the global average of US$ 519. And only 10% of the GCC population is covered under a health insurance.

  14. UAE ranks second highest in the world for diabetes. And, the obesity rate for GCC nationals stands at 40%, one of the highest in the world.

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