Saudi spending on healthcare is projected to reach to SR91.20 billion ($24.35 billion) in 2012 or an increase of 16 percent from SR78.63 billion ($21 billion) in 2011, BMI said in its "Saudi Arabia Pharmaceuticals and Healthcare Report Q4 2012".
Spending on pharmaceuticals would increase 13.5 percent to SR18.95 billion ($5.06 billion)
Spending on pharmaceuticals would increase 13.5 percent to SR18.95 billion ($5.06 billion) in 2012 from SR16.70 billion ($4.46 billion) in 2011, the report further said.
Expenditure on medical devices is forecast to jump 17.8 percent to SR6.53 billion ($1.74 billion)
Expenditure on medical devices is forecast to jump 17.8 percent to SR6.53 billion ($1.74 billion) in 2012 from SR5.54 billion ($1.48 billion) in 2011, the report added.
Saudi Arabia's transition to an increasingly privatized and comprehensive healthcare system will drive the demand for both patented and generic drugs, the study noted.
The Kingdom is investing heavily in healthcare infrastructure and we expect this will be borne out in double-digit growth forecasts across our three headline indicators.
The government is also in the process of creating more public-private health partnerships and encouraging private health insurance uptake
Saudi Arabia's composite score remained steady in Q412 at 55.6. This places the Kingdom to fifth place out of the 30 markets in the region. Its score is propped up by the country's wealth and a sizeable population (exceeding 28 million in 2011). Furthermore, its forecast growth rate is high due to favorable public and private healthcare investments. The government is also in the process of creating more public-private health partnerships and encouraging private health insurance uptake, which should provide momentum for drug sales.
An official decree bans smoking, including shisha pipes, from all government facilities and the majority of commercial areas, including restaurants, supermarkets and shopping malls
The report also noted the government's crackdown on smoking with the announcement in July 2012 of a ban on smoking in public places. The official decree bans smoking, including shisha pipes, from all government facilities and the majority of commercial areas, including restaurants, supermarkets and shopping malls. The decree also prohibits the sale of tobacco to citizens under 18.
Moreover, the report forecast ongoing strong growth and asset accumulation via real expansion in investment and exports, amid relatively high oil prices. Inflation in Saudi Arabia is unlikely to pick up substantially in the near term, it added. The optimistic future outlook of the Saudi Arabian healthcare industry also relies on innovation and the latest technology.
Leading IT companies are heading toward the Kingdom to test new devices and procedures designed to streamline hospital procedures and improve patient care
RNCOS said in a separate report that the leading IT companies are heading toward the Kingdom to test new devices and procedures designed to streamline hospital procedures and improve patient care.
In addition, new insurance laws set up by the Government mandates drug coverage and these are fuelling the spending. With the prevalence of new diseases and increasing population, the demand for healthcare services will augment and to cater to it, the government is planning to open new hospitals in the Kingdom.
The Saudi Gazette
20 October
