Aging, higher incomes to drive Mena health market
DUBAI, 23 days ago
A growing and aging population, the rising prevalence of chronic diseases, higher healthcare spending, and a rising number of high-income households region are the growth drivers for the healthcare sector in Mena, said an industry expert.
“I believe that healthcare in emerging markets will offset slower growth in North America and Western Europe,” added Dr Helmut Schuehsler, chairman and CEO of Dubai-based TVM Capital Healthcare, speaking at the Healthcare Business International conference in Westminster, London, yesterday (April 4).
He highlighted healthcare as an industrial megatrend in the Mena region and other emerging markets including South Asia.
Healthcare spending has increased significantly across the GCC in recent years, with a five-year compound annual growth rate of 11 per cent (2010–14).
Dr Schuehsler added: “But in spite of growing healthcare spending in the GCC, public expenditure as a percentage of GDP lags the developed world by a significant margin. GCC governments increasingly rely on the private sector to help meet the rising demand for health services, and to help shift the burden of spending on healthcare.”
“This, coupled with the recent introduction in some GCC countries of mandatory health insurance, provides a significant opportunity for investors. It is vital that investors examine business models as well as relationships with government when operating in emerging markets. Companies that are close to the regulatory authorities and remain aligned with the various licensing rules and reimbursement systems are more likely to perform.”
TVM Capital Healthcare has a strong track-record of investing in healthcare services and devices that address unmet medical needs. TVM Capital Healthcare Partners builds market leaders, which in turn build sustainable ecosystems in the various geographies where they operate.
Healthcare Business International is an annual conference aimed at senior healthcare leadership and investors, offering an opportunity to discuss insights and viewpoints on how the industry landscape is changing across Europe and Emerging Markets. – TradeArabia News Service