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Healthcare

At ValuStrat, we understand the importance that good health is the key and sustenance of the society and the country’s economy in large. Our team of experts have been serving regional healthcare institutions in providing specialized services in Healthcare Facility Planning and Consulting, program and project management consulting (for all types of healthcare facilities), medical equipment planning consulting and healthcare information technology consulting.

GCC economies with their high per capita income and growing population have seen a steady improvement in healthcare parameters like infant mortality and life expectancy over the years. However, lifestyle-related diseases such as diabetes and obesity have increased in tandem with growing per capita income and a sedentary lifestyle. The total expenditure on healthcare in GCC expanded at a CAGR of 13.7% during 2007–09. While the majority of this expenditure (over 70% of total expenditure) was financed by the GCC governments, private sector participation has increased in recent years. This is largely ascribed to favourable regulatory reforms by the governments. Continued investment by the governments as well as the private sector have improved healthcare infrastructure in GCC. The 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. The GCC healthcare sector offers attractive investment opportunities as reforms gather pace and the market opens up further.

The GCC healthcare market is projected to grow at an annual rate of 11% to USD43.9 billion by 2015 from an estimated USD25.6 billion in 2010. Outpatient and inpatient markets are expected to account for 82% and 18%, respectively, of the overall market size. Saudi Arabia is projected to remain the largest GCC market. It is also expected to be the fastest growing market along with the UAE. The gradual improvement of healthcare infrastructure and standards in the GCC along with increasing insurance penetration should see an increase in number of patients opting for treatments locally, thus seeing an increase in demand for hospital beds.

The healthcare sector in the UAE is among the 14 major areas attracting large forms of investment, forming part of the UAE Investment Map. Rapid increase in the population and income of UAE as well as movement towards a sedentary lifestyle are some key drivers of healthcare in the region. The government of UAE is highly committed to the healthcare sector and continuously strives to create a viable atmosphere for all stakeholders in the market including investors, professionals and individuals.

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