7.4 %, according to the international investment banking advisory firm Alpen Capital.
Telehealth is one innovative platform that uses a variety of technologies and tactics to deliver virtual medical, health and education services to enable the treatment or diagnosis of a patient by a physician or nurse remotely. Studies have shown this method has reduced spending while improving patient care and satisfaction levels. However, to guarantee success in implementing these services, it is first necessary to boost the availability of training, research and education opportunities and facilities to ensure there is a stable supply of qualified and highly trained local workers to meet the growing demand for healthcare services. More than physicians and nurses, specialists across the entire healthcare spectrum are also required, including health administration, health economics, health regulations, and health informatics. A growing industry Although the GCC is known to attract and depend on expatriates to live and work in
100 Saudi projects Similarly, Saudi Arabia’s health ministry has announced that over the next five years it would give a green light to 100 projects, which will be undertaken in cooperation with the private sector. The deals will be worth around SAR48 billion ($12.8 billion). According to a Colliers International research, Saudi Arabia will require 29,000 to 47,000 additional hospital beds by 2030, requiring an additional investment of $16.2 billion to$26.3 billion, mostly from the private sector. The Saudi ministry aims to raise the private sector’s contribution to the healthcare system, one of its long-term investment priorities, from 25 % to 35 % by 2030. The Saudi government has forecast that investment opportunities in the sector will amount to Saudi Riyal 330 billion ($87.96 billion) by 2030. As part of its Vision 2030, healthcare is identified as a crucial sector for development in Saudi Arabia, with a particular emphasis on advancing the pharmaceutical industry and expanding various health services.
UAE and Saudi Arabia lead surge in healthcare spending in the Gulf as the Current Health Expenditure (CHE) in the sector is tipped to reach $135.5billion by 2027, according to a GCC healthcare report by Alpen Capital. The figures imply an annualised growth rate of 5.4% from $104.1billion in 2022. Current Health Expenditure of Qatar, Bahrain, Oman and Kuwait is expected to grow at a compound annual growth rate (CAGR) of 5.1%, 6.1%, 4.7% and 4.4%, respectively in the coming years. Key challenges The key challenge for international investors is that each GCC country has a different infrastructure and regulatory landscape. This requires extensive due diligence and intelligence gathering before they can hope to gain an acceptable level of certainty about investment potential. Besides, the GCC nations are primarily dependent on import for pharmaceuticals, capital equipment, implants and medical devices. The high reliance on imports exposes the GCC to global price fluctuations in cases of supply chain disruptions, similar to those that occurred during the recent pandemic-imposed lockdowns. The industry continues to remain highly reliant on foreign workers for its healthcare personnel needs across medical specialties. This is due to scarcity of skilled and experienced national physicians and nurses in the region. Shortage of accredited medical institutions is also hindering the growth of local healthcare professionals. Despite recent advancements, there remains a gap in
the region, online education offers a unique opportunity to build a dependable and professional workforce from its nationals while still benefiting from the perspectives and best practices of those outside the region. Students in the Master of Healthcare Administration (MHA) program at Walden University learn with and from peers and faculty from around the world in the online global classroom. The online course-based and competency-based MHA program provides students with the core skills required to directly respond to the needs of their communities while optimising organisational performance and outcomes, including coordinating relevant expertise, disseminating healthcare advice, and communicating the training and education opportunities available in the sector. Central to this is not only the ability to think strategically about the direction healthcare will take but also the ability to educate and guide the ever-expanding workforce, ensuring consistency of service throughout this growth. Education and innovation are key contributors to a successful overhaul of the healthcare sector in the GCC region. If more people across the GCC have access to quality education and the drive to positively impact their community, the region will be able to take significant steps toward creating a healthy national culture and a sustainable and world-leading healthcare model that can adapt to the ever- changing needs of its population. As the GCC healthcare sector continues to mature, it is moving towards a value- based care model that places patient-centric outcomes at the core of growth strategy. The active participation from public and private operators has brought about a shift in delivery of care that is likely to transform the sector and differentiate market participants in their ability to offer services, scalability and sustainability. This is likely to drive competition and require organizations to establish strategic plans for value-creating opportunities, leading to the industry witnessing increased mergers, acquisitions and consolidation.
supply of specialized facilities for specialties such as neurological disorders, cardio surgeries, and trauma & rehabilitation. As a result, outbound medical tourism has been on the rise. The cost of healthcare services in the GCC has continued to rise due to increased demand for complex treatments, high dependence on imports, and a lack of specialized treatment centres. Opportunities Governments and private entities in the GCC should continue to invest in healthcare infrastructure to enhance medical facilities, research centres, and hospitals. Increased funding can help modernise existing infrastructure and build new facilities where needed. To reduce the dependence on foreign healthcare professionals, the region must focus on capacity building and invest in local talent. This includes providing advanced medical education and training opportunities to attract and retain skilled healthcare practitioners. Prioritising preventive healthcare initiatives can help reduce the prevalence of lifestyle-related diseases. Governments can implement awareness campaigns, promote healthier lifestyles, and improve nutrition education. Reforms in health insurance systems can improve healthcare access and affordability. Governments can work towards creating comprehensive health insurance schemes that cover a wide range of services for their citizens. The adoption of telemedicine and digital health solutions can enhance healthcare accessibility, especially in remote areas. These technologies can enable remote consultations, improve patient monitoring, and facilitate medical education. The way forward The GCC’s current focus on healthcare investment means the region is poised to position itself as a leader in this critical field and stay at the forefront of implementing new technologies, pioneering new methods, and delivering value to practitioners and patients alike.
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INVEST GCC: DAVOS 2024
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