Special Report: Healthcare & Pharmaceuticals - Private equity funds growth

13 August 2009

Improving the quality of healthcare is a critical policy challenge for governments across the GCC, with heavy investment needed to build large, modern facilities after decades of underinvestment.

Health authorities in the Gulf have long preferred to send patients overseas for more complex treatments, rather than develop their own facilities. But with the GCC population growing quickly - it is predicted to double to about 80 million over the next two decades - this is becoming unsustainable.

The expansion of healthcare facilities is expensive, and an estimated $10bn worth of healthcare projects are planned or under way in the Gulf. But it is not just state funding that is being poured into the sector. Private equity firms have also been quick to invest, recognising the potential for a high rate of return.

The Gulf’s healthcare projects will not be successful, however, without addressing the other major deficit: the skills shortage. Historically, the region has relied on recruiting healthcare professionals from overseas, and today 80 per cent of the UAE’s doctors are expatriates, while just 7 per cent of nurses in Qatar are locals. Globally, demand for healthcare workers is rising and the GCC’s governments need to focus on training an indigenous workforce to remove their current reliance on expatriate labour.

List of Special Report articles:

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.