Innovation is the medicine of the hour;
Medical technology can create an enhanced job market in the Middle East, says sector expert
• 343% of revenue spent on healthcare R&D
• 16% annual growth
• 11.2m health tourists to Dubai in 2010
• Dubai to have $11.9b sector by 2015
Quality and innovation are the mainstays that will enable the Middle East’s healthcare sector to pull through the current economic cycle, according to Peggy Farley, co-founder of Ascent Medical Technology Funds.
"There is no doubt that we are all faced with the realities of a severely troubled global economy, however, the good news is that the region's healthcare sector is looking set to grow," said Farley.
She said that the medical technology industry invests heavily in research and development (R&D) and companies, including many start-ups, spend an average of 343 percent of their revenue on R&D.
“Innovation is an essential by-product of the medical manufacturing industry. This coupled with a very high quality of delivery have been the growth pillars of the region's buoyant sector.
"I see the growth in healthcare and medical services sectors as continuing, bringing in its wake new job opportunities, good ROI and then even more innovation as R&D funds are nurtured."
Farley said that this upward cycle will help towards improving overall health of the population, and the GDP.
“Good health is fast becoming one of the Middle East’s greatest assets. The pulse of public health has been correctly recognised as a major contributing factor to good economic health – and thus one of increasing importance.
She said that the region has all the right ingredients to become a global healthcare provider, with Governments and private sectors in Dubai, Oman and Jordan particularly, showing commitment in backing the sustained growth of the healthcare industry.
Farley cited recent reports that estimate a 16 percent annual growth for the healthcare sector in Middle East.
"Healthcare in Dubai alone is expected to grow at 14 percent to reach $11.9 billion by 2015 ," Farley observed.
Major regional projects such as Dubai Healthcare City (DHCC), the International Medical Centre (IMC) in Jeddah and the Philadelphia Biological and Medical Product Development Centre in Jordan reflect Farley’s sentiments.
The strong growth prospects are primarily driven by three developments: the strong healthcare industry and patient flow with the UAE expecting 11.2 million healthcare tourists by the year 2010 ; an abundance of medical and life sciences professionals; a sophisticated pharmaceutical industry which serves as the base for the expanding MedTech sector.
“The economic climate in world today indicates that it is time for the Middle East to capture and utilise its vast store of intellectual capital and well-channeled financial resources to boost the medical industry,” Farley concluded.
