The GCC healthcare industry is poised for strong growth driven by macro-economic factors, the expansion of mandatory health insurance and a growing and ageing population, according to UAE-based Alpen Capital, an investment banking advisory firm.
In its latest 'GCC Healthcare Industry Report', released earlier this month, Alpen Capital forecasts the Current Healthcare Expenditure (CHE) in the region to grow from $109.1bn in 2024 to $159bn in 2029, at a CAGR of 7.8%. CHE as a proportion of GDP in the GCC is anticipated to grow from 5.0% in 2024 to 5.7% in 2029.
The growth is expected to vary widely among the GCC nations largely owing to country-specific population projections, economic conditions and cost of healthcare among other factors. Saudi Arabia is likely to witness the highest growth rate at 8.8%, whereas the UAE’s healthcare industry is expected to grow at a CAGR of 6.7% during the forecast period of 2024-2029. The market rankings are expected to remain unchanged, with Saudi Arabia and the UAE dominating the region’s CHE with a combined share of 82.6% by 2029. CHE of Qatar, Kuwait, Bahrain and Oman is expected to grow at CAGRs of 8.3%, 6.3%, 6.0% and 4.0%, respectively between 2024-2029.
The report also says that government-led diversification strategies and national development plans of the GCC will continue to enhance the healthcare infrastructure and facilities, bringing them at par with international standards. Further growth of the healthcare industry will be fueled by privatisation initiatives, substantial investments in digital transformation and rising demand for specialised healthcare services.