2013-08-25 09:15:02 - Recently published research from Business Monitor International, "Qatar Pharmaceuticals & Healthcare Report Q3 2013", is now available at Fast Market Research
Despite its favourable risk profile in relation to most of its regional neighbours, we continue to see Qatar as a relatively modest longer-term commercial proposition for research-based pharmaceutical manufacturers, on account of its modest population size of less than two million. Nevertheless, a growing non-communicable disease burden should ensure consumption continues to rise in volume terms, especially as Qatar continues to invest in healthcare and research infrastructures.
Headline Expenditure Projections
* Pharmaceuticals: QAR1.49bn (US$410mn) in 2012 to QAR1.68bn (US$462mn) in 2013; +12.9% in local currency and US dollar terms. Forecast broadly unchanged in relation to Q313.
* Healthcare: QAR14.02bn (US$3.85bn) in 2012 to QAR15.61bn (US$4.29bn) in 2013; +11.3% in both local currency and US dollar terms. Forecast broadly unchanged in relation
to Q313, despite an upward revision of historical figures.
Full Report Details at
- www.fastmr.com/prod/670587_qatar_pharmaceuticals_healthcare_repo ..
Risk/Reward Rating: In BMI's Pharmaceutical Risk/Reward Rating (RRRs for the Middle East and Africa (MEA) region, Qatar now ranks seventh out of the 30 countries surveyed, having been fourth prior to the adjustment of our proprietary assessment tool. While Qatar's risks are particularly low in relation to the rest of the MEA region, its potential rewards are dampened by the small market size, although the country offers high per capita spending on pharmaceuticals. Despite the limited market size, Qatar's high level of urbanisation, rapid population growth and high prevalence levels of chronic lifestyle diseases create an environment in which there is strong potential for future market growth.
Key Trends And Developments
* According to local press reports from February 2013, Qatar-based Sidra Medical and Research Centre plans to recruit more than 4,500 healthcare professionals in the next two years. The medical facility will give employment preference to Arab medical personnel to encourage local skilled graduates. Sidra, which is expected to be inaugurated in 2014, will also provide the latest medical education and biomedical research opportunities to medical professionals. With an endowment of US$7.9bn from the Qatar Foundation, the facility will provide specialised care in obstetrics, gynaecology and paediatrics.
* In the same month, US company Aviir Inc signed an agreement with Partners & Partners (P&P), under which the latter will form the sole distributorship of Aviir's testing products and technologies in 19 Middle Eastern and North African countries, including Qatar. Through its affiliate, Qatar Heart Laboratory, P&P intends to launch, country-by-country, a network that will distribute and promote Aviir's tests.
BMI Economic View: Recently released preliminary estimates from the Qatar Statistics Authority (QSA) show the Qatari economy expanded by 6.2% in real terms in 2012, on account of a stronger-than-expected performance in Q412. However, the 2012 reading still marks a sharp deceleration in growth, following substantial increases over the last few years, as the hydrocarbons sector (mining and quarrying) underperformed. We continue to see expanding private consumption and progress on infrastructure investments, both supported by public spending, as stimulating economic activity over the next few years. Qatar's medium-term fixed investment outlook similarly remains among the most positive in the region, with the country benefiting from a substantial pipeline of infrastructure projects in anticipation for the FIFA 2022 World Cup.
BMI Political View: Qatar's plans to launch two publicly-traded funds, the Doha Global Investment Company (DGIC) and Infrastructure Investment Company (ICC), provide a way for Qatari nationals to become directly involved in their country's economic future. We note that, while the economic and financial benefits for the government of the two programmes are mixed, the move will likely have been spurred in greater part by political considerations. For example, the majority of the ICC's financing will still be supplied by the government, making it hard to see what the difference is between direct state funding and the future role of the fund. Additionally, the government will likely face the need to boost transparency significantly to attract investors, including shedding light on the structures of the funds and the composition of their assets.
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