BMI View: We remain positive in our outlook for Qatar's pharmaceutical and healthcare markets, in spite of lower oil prices. Government commitment to maintaining quality healthcare provision and the roll-out of health insurance will both drive expenditure growth.
Headline Expenditure Projections
Pharmaceuticals: QAR1.79bn (USD491mn) in 2014 to QAR2.00bn (USD548mn) in 2015; +11.5% in local currency and US dollar terms. Forecast unchang ed from Q 4 15.
Healthcare: QAR17.25bn (USD4.74bn) in 2014 to QAR18.86bn (USD5.18bn) in 2015; +9.3% in both local currency and US dollar terms. Forecast in line with Q 4 15 .
Qatar's risks are particularly low in comparison with the rest of the Middle East and Africa (MEA) region, although its potential rewards are dampened by the small market size. Nevertheless, Qatar's high level of urbanisation, rapid population growth and rising prevalence of chronic lifestyle diseases create an environment in which there is strong potential for market growth. In BMI's Pharmaceutical Risk/Reward Index for the MEA region in Q116, Qatar has retained its position of fourth place, with the country's score remaining at 55.5 out of 100.
Key Trends and Developments
Qatar Airways Cargo introduced two new dedicated pharmaceutical routes from India to Doha, as the firm looks to capitalise on industry growth in the Middle East. The first new 'Pharma Express' route began in November 2015. To date, the company is the only airline offering this dedicated service to the pharmaceutical industry, according to Qatar Airways Chief Officer Cargo Ulrich Ogiermann.
According to Minister of Public Health Abdullah bin Khalid Al Qahtani in October 2015, about QAR1.29bn (USD354.3mn) was spent on the treatment of Qatari citizens under the social health insurance system between July 2013 to October 21 2015.
In October 2015, Qatar Pharma announced its plans to set up a new pharmaceutical production line for insulin and anti-cancer drugs in the country. The plant would be first of its kind in the Gulf Cooperation Council (GCC).
BMI Economic View
Qatar has so far largely defied the slump in global energy prices, and will continue to record stronger economic growth than the rest of the region over the coming years. While modest headwinds are rising as the government adopts a more conservative fiscal stance, both infrastructure growth and the expansion of the services economy will remain buoyant.
BMI Political View
Qatar's decision to send 1,000 ground troops to Yemen - nearly 10% of its armed forces - marks a decisive milestone in the country's foreign policy. The move aligns Qatar more closely with its Gulf neighbours, but means that the country risks becoming bogged down in a drawn-out conflict to little obvious benefit. Any Qatari casualties could provoke discontent among the small native population.
The Qatar Pharmaceuticals & Healthcare Report features BMI Research's forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.
BMI's Qatar Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Qatar pharmaceutical and healthcare industry.
- Benchmark BMI's pharmaceutical and healthcare market forecasts for Qatar, to test other views - a key input for successful budgeting and strategic business planning in the Qatari pharmaceutical and healthcare market.
- Target business opportunities and risks in the Qatari pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Qatar.
- Assess the activities, strategy and market position of your competitors using our company profiles (including SWOTs, KPIs and latest activity) and competitive landscape tables.
BMI Industry View
An at-a-glance perspective on the latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The pharmaceuticals and healthcare SWOT outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.
BMI Industry Forecast Scenario
Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:
- Healthcare: Total healthcare expenditure (USDbn), healthcare expenditure (% of GDP), healthcare expenditure per capita (USD), hospital beds, doctors, and birth & mortality rates (all per ‘000 population).
- Pharmaceutical Market: Drug expenditure in USDbn, % of GDP and per capita (USD).
- Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
- Generic Drug Market: Generic product sales (USDbn), generic sales (% of total sales).
- OTC Drug Market: OTC sales (USDbn & % of total sales).
- Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against USD, government expenditure and external debt.
BMI’s Pharmaceuticals and Healthcare Risk Reward Index
BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape
A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.
Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as analysis of the overall regulatory burden.
The competitive landscape section provides comparative company analyses and index by USD sales and % share of total sales – for the total pharmaceutical sector, as well as the OTC, generics and distribution sub-sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.