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GCC is currently home to one of the fastest growing populations in the world. The population is forecast to grow at a rate of 2.8% in the next 5 years to reach about 48 m by 2015. Meanwhile, it is estimated that about 42% of the population in GCC countries are expatriates. As a result, the population is predominately young, and are therefore likely to spend more money in areas such as healthcare, beauty and fitness.
The broader Middle East region is well positioned for strong growth in the field of pharmaceutical and medical services. The Middle East pharmaceutical market was valued at $14.8 bn in 2008, registering a year-on-year sales growth of 12.6%, and was forecast by Business Insight to return at a CAGR of 8.1% between 2008 and 2014, to reach a total value of 23.5bn in 2014. In the 6 GCC countries, the healthcare expenditure per capita is estimated to grow from $908 to $1,366 within the same time period based on Global Insight projection. General anti- infection, metabolism and cardiovascular diseases are among the top selling therapeutic categories, registering sales of $2.6bn, $2.3bn and $1.9bn in 2008 respectively. Antineoplastics and immunomodulating agents have also exhibited robust growth over the years.
GCC governments are continuing to make substantial investment in medical education and infrastructure. As a result, life expectancy rose from 60.5 years in 1978 to 73 years in 2004, and the infant mortality rate fell from 69 deaths per 1,000 live births to 18 in the same period. However, the population of GCC countries is expected to double over the next two decades. In Saudi Arabia, for example, the number of people over 65 is expected to increase by more than sevenfold in the next 25 years. In addition to this, other demographic and lifestyle changes will pose a significant challenge for the regional healthcare system. All these changes will drive a substantial rise in further healthcare expenditures and demand for more advanced healthcare related products and services.
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