Doha: Qatar has the highest per capita healthcare spending in the GCC region. The country's healthcare services market is the fastest growing one, said a market study conducted by the Alpen Capital Investment Bank.
Though the average per capita healthcare expenditure in GCC is far below the US, UK and Germany, the ratio of nursing, midwives and physicians to the total population in Qatar is matching to the strength of these developed countries. Qatar has a higher rate of physicians than the US and the UK.
"Healthcare services in Qatar have improved over the years, thereby increasing life expectancy at birth levels by 18 years from 59.8 in 1960 to 77.9 years in 2009. The government spent aggressively in the sector and announced the National Health strategy 2011-2016 to continually upgrade infrastructure over the next five years," the report said
The country's healthcare services market was the fastest growing market in the GCC region, expanding at a Compound Annual Growth Rate (CAGR) of 30 percent. The outpatient segment accounted for 71 percent of the total market, with the inpatient segment accounting for the rest. However, Qatar's healthcare expenditure as a percentage of GDP is lower than the GCC average, said Alpen Capital's research note.
The number of hospital beds is likely to increase at a CAGR of 1.6 per cent to 3,743 in 2015 from an estimated 3,464 in 2010. Healthcare projects worth around $2.8bn are underway in the country.
UAE is one of the most organised and fastest growing healthcare markets in GCC. Improved healthcare infrastructure and rising income over the years have increased life expectancy at birth from 511.6 years in 1960 to 76.4 years in 2009 in the country. Over 2010-2015, the market is expected to expand at a CAGR of 12.1 percent to $8bn from an estimated $4.5bn.
Continued investment by the governments as well as the private sector have improved healthcare infrastructure in GCC; however, it continues to lag the standards of developed markets. The per capita healthcare expenditure and healthcare expenditure as a percentage of GDP are still below that of developed economies.
The study estimates demand for healthcare in the region to grow due to a rapidly growing population, rising income levels, increased insurance penetration and an increased prevalence of lifestyle-related diseases. With soaring healthcare costs and the consequent additional burden on state finances, GCC governments are actively pursuing reforms and policy measures to promote private sector participation.
The GCC health market is projected to grow at an annual rate of 11 percent to $43.9bn by 2015 from an estimated $25.6bn in 2010.
© The Peninsula 2011
