DOHA: Qatar is expected to witness an estimated spending of about $12bn (QR43.7bn) by 2024, a sharp jump of 150 percent compared to $4.7bn (QR17.12bn) in 2014, according to a latest report.
When compared with the 2010 spending of $2.6bn (QR9.47bn), Qatar will register a remarkable about 360 percent growth in its healthcare spending by 2024, according to the EY’s report on ‘Investment Big Bets – Healthcare and Life Sciences in the GCC’ released yesterday.
The healthcare spending has seen a notable increase across the GCC region over the past couple of years, with a five-year CAGR (2010–14) of 11 percent. The growth rate has been further pegged to grow substantively at between 12 percent to 20 percent for over the next 10 years on account of increasing insurance penetration, growing population and growing prevalence of lifestyle related diseases.
Amit Zushi, Partner, EY, said:“The healthcare sector has been growing upwards of 10 percent per annum across Mena region, with significant potential for growth in quality care over the next few years. Mandatory insurance has been and will continue to be a big driver, particularly in Qatar, Saudi Arabia and parts of the UAE.”
According to the report, Qatar and Oman allocated about 2.2 percent and 2.7 percent of their GDPs in healthcare, respectively— the lowest among other GCC-member states. Bahrain spends 4.6 percent of its GDP on healthcares, the highest in the region. While the developed countries like US and Germany allocated 17.3 percent and 10.9 percent, respectively.
However, when it comes to spending in preventive care, Qatar tops the list in the region. Qatar’s estimated healthcare expenditure (per capita) to preventive care in 2013 was $131, followed by the UAE and Kuwait with $90 and $88, respectively. Oman spent only $31 (per capita) in preventive care, the lowest among all Gulf states. In contrary, the advanced countries such as the Netherlands and Germany spend $492 and $400, respectively.
Future investments in the health sector in Qatar and other GCC countries are expected to be driven primarily to fill the quality gap in health service delivery as opposed to just a demand-supply gap in physical infrastructure, where significant investments have already been made in most GCC countries. Ahmed Faiyaz, Mena Healthcare Transaction Advisory Services Leader, EY, said: “By 2020, $3.5-4.8bn could potentially be spent on home healthcare services across the GCC. Significant growth is expected in the area of mobile health apps and home-based diagnostic and physiotherapy services.”
There is a visible shift in some GCC countries, including Qatar where a large portion of upcoming projects are dedicated to specialised facilities focusing on one or a limited number of specialties with the aim to develop centers of excellence (CoEs).
The healthcare spending in neighbouring Saudi Arabia and the UAE by 2024 is forecast to reach $61.2bn and $25.7bn, respectively. The spending for the sector in Saudi Arabia and the UAE in 2014 stood at $27.4bn and $13.6bn, respectively.
The combined spending for healthcare of all the six-GCC states is forecast to hit $115bn by 2024, up by over 88 percent compared to the estimated $61bn in 2015.
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