MEDICAL DEVICE MARKET – SAUDI ARABIA
- The Saudi economy relies heavily on the price of oil; if prices are high, the markets remain strong. If, however, oil prices fall, the markets contract and the economy slows down. It has also been known to cause late payment to creditors.
- Under the Sixth Development Plan, the healthcare sector expanded rapidly and the government hopes to sustain that growth by investing in construction and other projects. In 2005 alone, US$448 million was allocated to the construction and renovation of health facilities. It must be noted however, that tertiary sector hospitals are highly advanced; the Development Plans are generally aimed at improving primary healthcare provision.
- The private sector in Saudi Arabia is small, but as part of the plan mentioned above, its role is being enhanced. Private sector participation is being encouraged in the provision of services, the financing of construction & management of facilities and the production of pharmaceuticals & medical devices.
- Saudi Arabia has no official standard for medical products, but the majority of physicians are trained to Western standards and will want to use the best equipment available. Foreign companies must have a local agent and tariffs apply to some medical equipment.
- Imports account for the vast majority of the market. In 2005, Saudi Arabia imported medical equipment & supplies valued at US$581.2 million, over half of which was medical equipment (HS9018). The USA, Germany and the UK were leading suppliers. Exports totalled just US$23.0 million in 2005, nearly half of which consisted of medical supplies, primarily dressings, destined for Taiwan and the EU.
- In 2007, the Saudi market for medical devices is valued at US$676 million, equal to US$26 per capita, making it the largest in the Middle East. Though it may be the largest regional market by value, in per capita terms, Saudi Arabia is ranked alongside countries such as Cuba and Bulgaria. The market is expected to expand by 4.9% annually to reach US$858 million by 2012, equal to US$29 per capita.
Summary of the Saudi Arabian Medical Device Market in 2007
|
2007 |
|
|
|
|
| Market Size (US$ millions) |
675.5 |
| as % of total health expenditure |
4.9 |
| as % of GDP |
0.2 |
| as % of world market |
0.4 |
|
|
|
| Growth rate (%) |
4.9 |
| Per capita expenditure (US$) |
26.1 |
Source: Espicom estimates.
Projections
The medical device and supplies market is expected to rise steadily in Saudi Arabia over the next few years; the pace of growth may quicken if private sector investment reaches the levels hoped for in the Eighth Development Plan. It is expected that the device market will continue to expand at an average rate of 4.9% per annum. This will take the Saudi market to US$858 million by 2012, or US$29 per capita.
Market Projections, 2007-2012
|
Market (US$ millions) |
Per Capita (US$) |
|
|
|
|
|
| 2007 |
676 |
26 |
| 2008 |
708 |
27 |
| 2009 |
743 |
27 |
| 2010 |
779 |
28 |
| 2011 |
817 |
28 |
| 2012 |
858 |
29 |