Doing Business In Saudi Arabia - Bna

Medical Equipment (MED)
Overview Return to top
Saudi Arabia is the region’s largest and most developed market for medical products
and services, valued at $13.1 billion. The introduction of compulsory healthcare in
2005 will further enhance investments in the healthcare sector.
Privatization and favorable government policies will also boost investments in this
sector, especially for hospital services, medical equipment and pharmaceuticals.
Between 2008 and 2016, and based on a recent study, health expenditures are
expected to increase dramatically, even faster than 20 percent, the rate of population
growth. Over the same period, demand for hospital beds is likely to grow from 51,000
to 70,000, demand for physicians is likely to rise from 40,000 to 54,000 - and the
number of hospitals is likely to rise from 364 to 502.
The Saudi Government has, over the years, allocated an increasing amount of their
budget to the healthcare sector. The long-run trend is toward rapidly increasing
expenditures for this vital sector in parallel with a growing population and rise in costs
of treatment Between 1999 and 2005, government saw a 7.2 percent annual
compounded annual growth in its healthcare budget. The Kingdom spent $13 billion
on healthcare in 2005, and this spending is expected to grow to over $20 billion by
2016.
Best Prospects/Services Return to top
The latest figures reveal the following:
- 24.7 percent of the Saudi population is diabetic, one of the highest percentage in
the world ($1.1 billion for diabetes treatment)
- 22 percent of the population are regular smokers, a major cause of respiratory
diseases
- Heart diseases increasing at an average 5.3 percent annually (five new cardiac
centers)Other major diseases of concern include breast cancer, kidney diseases, and
obesity
The Saudi healthcare sector should at the very least grow an average of six new
hospitals (average 200 beds per hospital) per year to keep pace with the population
growth, while demand for hospital beds to increase by 3.4 percent annually.
Opportunities Return to top
The Saudi Government has allocated $11.84 billion for the healthcare sector in its
2008 budget, 11 percent more than in 2007. The new budget ent building 250 Primary
Healthcare Centers, eight new hospitals, a $1.68 billion Center for Tumors & liver
Diseases, furnishing & equipping 79 existing hospitals, and installing a National
Healthcare Information System.
There are also various opportunities for investments in generic drug manufacturing
and medical devices, including a recently launched joint venture for GE healthcare with
a local company.
5/13/2008