(MENAFN - Khaleej Times) The healthcare industry in the GCC is expected to continue its robust double-digit growth propelled by demographic and macroeconomic factors in the region.
The region's healthcare spending is expected to increase by a CAGR of 11.4 per cent from 2010-2015.
The main growth drivers of the industry include the region's fast growing population, rising income levels, increased prevalence of lifestyle diseases, growing demand for quality healthcare and mandatory health insurance policies.
GCC governments are trying to make significant investments to support healthcare provision and help the industry to grow to international standards.
Several GCC nations have announced plans to ramp up infrastructure to cater to rising demand, with major healthcare projects across the region being planned to accommodate the ever growing demand. Even though GCC governments continue to lead in healthcare expenditure, increased participation by private players has been seen in the GCC healthcare industry.
"The healthcare industry is driven by positive growth prospects and increased purchasing power. The growing demand for healthcare services coupled with regulatory changes and emphasis on quality healthcare makes the GCC an important destination for both domestic and international investors," Andrea Longhi, Mena Advisory Healthcare Leader, EY, said.
With programmes such as mandatory insurance there is an increasing reliance on the private healthcare sector and most well established facilities are focusing to expand rapidly to create capacity for their growing markets. One way of doing this is by way of an IPO and raising capital for expansion. The recent IPO of several healthcare facilities have set a precedent and more are to follow in the coming years.
"The inclusion of this sector as part of the overall investment strategy for major institutions has become vital," Imad U Bokhari, Mena Transaction Advisory Services Healthcare Leader EY, said.