2014-01-05 01:37:48 - New Healthcare market report from Business Monitor International: "Saudi Arabia Pharmaceuticals & Healthcare Report Q1 2014"
Despite some issues over its intellectual property (IP) regime, Saudi Arabia will continue to present a considerable longer-term opportunity for pharmaceutical companies. The Kingdom - which is the richest and largest of the Gulf states - has a large and growing population that is heavily afflicted by conditions related to sedentary lifestyles. Though imports will continue to meet most of the demand for pharmaceuticals, we also envisage a steady stream of government investment in drug manufacturing.
Headline Expenditure Projections
* Pharmaceuticals: SAR20.41bn (US$5.45bn) in 2012 to SAR22.68bn (US$6.06bn) in 2013; +11.1% in both local currency and US dollar terms. Forecast broadly unchanged from Q4 2013.
* Healthcare: SAR88.38bn (US$23.60bn) in 2012 to SAR98.05bn (US$26.18bn) in 2013; +10.9% in both local currency
and US dollar terms. Forecast broadly unchanged from Q4 2013.
Full Report Details at
- www.fastmr.com/prod/754763_saudi_arabia_pharmaceuticals_healthca ..
Risk/Reward Rating: In our Q1 2014 RRR table, Saudi Arabia rose from second to pole position out of the 30 Middle East and Africa (MEA) markets in the region, overtaking the developed but much smaller market of Kuwait. Saudi Arabia's favourable longer-term outlook is propped up by its high per capita incomes, rising prevalence of chronic 'civilisation' diseases, preference for patented medicines, healthcare infrastructure investment and the growing population. However, we note that some investors will continue to be detracted by the country's lacking commitment to intellectual property (IP) protection.
Key Trends And Developments
* According to Gulf Business reports, two of Saudi Arabia's largest private hospital groups, Sulaiman Al-Habib Medical Group (HMG) and Almana General Hospitals, will seek initial public offerings (IPOs) on the Kingdom's stock exchange in 2014. Both will offer approximately 30% of their shares, to local investors only. Almana currently only operates facilities in Saudi Arabia, while HMG manages 14 medical facilities across Saudi Arabia, the UAE and Bahrain. The IPO proceeds will likely be used to expand healthcare operations in the region and capitalise on growing demand for healthcare services.
* According to October 2013 reports in local press, the government of Saudi Arabia is considering replacing foreigners working in private sector administrative jobs at hospitals, polyclinics and medical centres with local workers, as part of its plan to localise these industries. The Saudi Council of Chambers health Committee, along with the Human Resources Development Fund has started counting administrative jobs in all private hospitals and polyclinics and has also initiated courses and awareness classes for Saudi jobseekers to enable them to take up the jobs, Al Kholaif added.
BMI Economic View: We expect the Saudi Arabian economy to perform well throughout the coming quarters, and forecast overall real GDP growth of 4.3% in 2014, up from a projected 3.6% in 2013. However, as we have noted in the past, the government's continued workforce nationalisation efforts ('Saudisation') pose a clear downside risk to near-term non-oil private sector activity. With an amnesty for foreign workers in the country having expired on November 3 2013, and Riyadh having pledged a crackdown on illegal immigrants, we will be watching closely for signs of disruption to the construction and retail sectors in particular.
BMI Political View: Our political view has not changed since the last quarter. Indeed, we caution that the Saudi royal family depends on steady oil revenues to maintain its tight grip on the population. As a result, a sustained downturn in global oil demand could lead to substantial unrest and, potentially, regime change over the long term.
Partial Table of Contents:
BMI Industry View
- Business Environment
- Pharmaceutical Market Forecast
- Table: Saudi Arabia Pharmaceutical Sales, Historical Data and Forecasts, 2009-2017
- Healthcare Market Forecast
- Table: Saudi Arabia Healthcare Expenditure Trends, Historical Data and Forecasts, 2009-2017
- Table: Saudi Arabia Government Healthcare Expenditure Trends, Historical Data and Forecasts, 2009-2017
- Table: Saudi Arabia Private Healthcare Expenditure Trends, Historical Data and Forecasts, 2009-2017
- Prescription Drug Market Forecast
- Table: Saudi Arabia Prescription Drug Market Indicators, Historical Data and Forecasts, 2009-2017
- Patented Drug Market Forecast
- Table: Saudi Arabia Patented Drug Market Indicators, Historical Data and Forecasts, 2009-2017
- Generic Drug Market Forecast
- Table: Saudi Arabia Generic Drug Market Indicators, Historical Data and Forecasts, 2009-2017
- OTC Medicine Market Forecast
- Table: Saudi Arabia OTC Medicine Market Indicators, Historical Data and Forecasts, 2009-2017
- Pharmaceutical Trade Forecast
- Table: Saudi Arabia Pharmaceutical Trade Data And Forecasts (US$mn), 2009-2017
- Table: Saudi Arabia Pharmaceutical Trade Data And Forecasts (SARmn), 2009-2017
- Other Healthcare Data
- Key Risks To BMI's Forecast Scenario
- Table: Saudi Arabia - Economic Activity
Industry Risk Reward Ratings
- Middle East And Africa Risk/Reward Ratings
- Saudi Arabia Risk/Reward Ratings
Industry Trends And Developments
- Non-Communicable Diseases
- Healthcare Sector
- Healthcare Sector Funding
- Private Healthcare Sector
- Primary Healthcare Provision
- Secondary Healthcare Provision
- Health Insurance
- Information Technology (IT) in Healthcare
- Research And Development (R&D)
- Clinical Trials
- Regional Regulatory Developments
- Free Trade Agreements
- Intellectual Property Regime
- IP Deficiencies
- Counterfeit and Unregistered Drugs
- OTC Drug Market
- Pricing Regime
- Pricing System Reform
- Tendering Procedures
- Reimbursement Regime
Full Table of Contents is available at:
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at www.fastmr.com
or call us at 1.800.844.8156.