The prognosis for regional healthcare companies is positively glowing, based on the crowds at the Arab Health Congress in Dubai this week. "This is probably the busiest I've ever seen it," said Richard di Benedetto, the president and chief executive of GE Healthcare in the Middle East. "I'm booked from eight in the morning until midnight tonight."
The furious pace of doctors, government health officials and corporate executives working at the Dubai World Trade Centre throughout the week reflected a potential bright spot in the economy. Health care has proved to be a resilient business, performing well through last year's tough economic conditions. And demand should remain strong as GCC countries struggle to cope with ageing populations and the rising incidence of obesity-related diseases such as diabetes and cardiovascular illnesses. Various estimates peg the value of the GCC's healthcare sector at between US$15 billion (Dh55.09bn) and $18bn a year, increasing five-fold by 2025.
"Despite the doom and gloom in the industry, health care is still growing at a healthy pace," said Tommy Trask, the executive director of Alpen Capital, a Dubai investment bank. "Clearly there is a catch-up taking place." More than 27,000 beds will be needed to elevate the region's healthcare quality to international levels, Alpen Capital said in a recent report. The bulk of the spending will come from government agencies as investment from the private sector continues to lag.
Several companies could profit from the surge in spending. This week, Siemens Healthcare landed a $69 million contract to outfit Iraq's hospital infrastructure, one of the largest healthcare projects in the country's history. Philips and General Electric are also global companies with a strong presence in the region. Qatar's Care Holdings, Gulf Medical Projects and Oman Medical Projects are among the few publicly traded healthcare firms in the region. Emaar, the Middle East's largest property company, built several medical facilities recently and plans to expand into Egypt and Syria.
@Email:dgeorgecosh@thenational.ae