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GCC as an investment destination November Gulf Petrochemicals Industry Report March GCC healthcare industry continues to offer a wide gamut of investment opportunities. Though traditionally regional governments played an instrumental role in building the sector, shrinking oil revenues have slowed spending.
At the same time, the role of private sector is increasing, encouraged by government incentives, mandatory health insurance and other reforms. Given the changing demographic and epidemiologic structure, mandatory health insurance, and government initiatives to encourage private sector participation, we expect to see steady growth in private sector investments in the healthcare industry, says Sameena Ahmad, Managing Director, Alpen Capital ME Ltd.
Even though regional governments continue to shoulder a sizeable part of the healthcare expenditure, in the backdrop of budget deficits, the importance of private sector participation is being widely discussed across the GCC nations. With increasing opportunities for the private sector, the healthcare industry is witnessing a surge in mergers and acquisitions. The inorganic route is being adopted by new players to enter the market and by existing providers to expand market share, physician practices and medical capabilities, says Krishna Dhanak, Executive Director, Alpen Capital ME Ltd.
Expanding population, high prevalence of Non Communicable Diseases NCDsrising cost of treatment and increasing penetration of health insurance are the factors auguring growth. Given the ageing population and an expected increase in the frequency of visits to clinics for treatment and preventive care, the outpatient market size in the region is predicted to grow at an annualized average rate of 7.
The inpatient market is anticipated to increase at a CAGR of 6. Growing size of population, and rising cost of medicine and ancillary services will be the forces driving the spending on other healthcare services. Between andcountry wise CHE is anticipated to expand at annual average growth rates between 2. The growth range is wide due to country-specific projections of population, cost of healthcare and other factors.
In view of the anticipated rise in number of patients, the region is expected to require 12, new hospital beds by This translates into an estimated annual average growth of 2. The high incidence of chronic cases has led to an increase in demand for beds, particularly in specialized areas of care.
Although the general hospitals are not running at optimal capacity, the need for beds is rising due to limited availability of specialty trade center signals dubai sale august 2015, long-term care centers and rehabilitation centers, among others.
To download the report, please trade center signals dubai sale august 2015 here. The GCC insurance sector maintains resilient growth, given the significant penetration gap compared to the advanced economies and despite challenges such as drop in oil prices and reduced, public and business spending. Nevertheless, developing regulations, economic diversification efforts, mandatory health insurance and favorable demography present a bright outlook for the sector.
The GCC Insurance industry is stepping into the next phase of growth, fueled by rising insurance awareness, economic revival and infrastructure developments and an expanding consumer base. Further, the maturing and stringent regulatory environment is likely to create strong, stable and sustainable business models. This projection is based on existing fundamentals of the industry and economic outlook.
The growth in GWP is likely to be moderate inas the industry players are adapting to the new regulations amidst increasing competition and recovering economic activity. On one hand, increased capitalization requirement and actuarial pricing are improving the financial performance of insurers and on the other hand, the regulations are encouraging consolidation activity.
Between andinsurance markets in the UAE and Oman are anticipated to grow at the fastest annualized average pace of The premium growth in Oman is likely to be driven largely by the introduction of mandatory health insurance and that in the UAE by new motor insurance pricing regime. Additionally, macro factors like population growth, infrastructure developments and revival of business activity will aid growth across the countries.
While the market rankings of the countries are not expected to change throughthe share of UAE and Oman are likely to expand and that of others may contract. The non-life insurance market is expected to grow at a rapid CAGR of During the forecast period, the life insurance GWP is projected to grow at an annual average rate of 5. Insurance penetration in the region is forecasted to expand from 1. The expansion is driven by an improvement in penetration of non-life insurance to 2.
The penetration rates continue to remain below the international average, presenting immense scope of growth. Insurance density in the region is anticipated to increase at a CAGR of 8.
Trade center signals dubai sale august 2015 GCC nations and India are strengthening historic ties across cultural, trade, economic, defense and political areas. Relations between the two regions are maturing beyond trade, as they trade center signals dubai sale august 2015 the potential of strategic cooperation and growth.
Though bilateral trade continues to dominate the multi-billion dollar trade center signals dubai sale august 2015, we see that the investment flows are rising rapidly, as the regions recognize that the GCC-India corridor presents immense opportunities for investors. The GCC governments are continuously reforming policies to create an environment conducive for investment by foreign entities. On the other hand, India, as a fast growing and trade center signals dubai sale august 2015 economy, is in the process of upgrading infrastructure, creating a digitally empowered society, increasing local manufacturing and enhancing energy production.
Such initiatives from both regions will create increased investment opportunities and further strengthen the relations between GCC and India. The GCC nations have been able to self-fund their economic development through the wealth accumulated from the export of oil and gas. Nonetheless, foreign investments have remained imperative in diversifying revenue base, strengthening technological capabilities, improving export competitiveness and creating employment opportunities.
The rapid growth is mainly due to substantial inflows during across the GCC countries, barring Oman. The stability of the Indian Rupee over the years have supported remittances to the country. Although the sector is experiencing a slowdown, the long-term fundamentals of the sector remain strong and are expected to grow steadily through A favorable demography, high per capita trade center signals dubai sale august 2015 and an active tourism industry have attracted renowned international retail brands to the GCC.
The numerous mall developments in the pipeline and growing penetration of modern store formats are a testament to immense opportunities in the sector. Furthermore, government efforts to encourage foreign investments, to strengthen tourism infrastructure and prevent entry of counterfeit products are lending impetus to the GCC retail trade center signals dubai sale august 2015.
After witnessing a drop inretail sales are likely to grow at a slow pace inin view of the prevailing economic environment. Nevertheless, the sector is expected to recover in and grow steadily through driven by the expected rise in population, international tourist arrivals and per capita income. Between andnon-food retail sales are anticipated to grow at an annualized rate of 5. During the period, food retail sales are likely to grow a CAGR of 3. The GCC population is expected to grow at an annualized rate of 2.
Trade center signals dubai sale august 2015 expanding consumer base, comprising a high proportion of young and working-class, is the major growth driver for the retail sector. Going ahead, an anticipated recovery in economic conditions is likely to boost consumer sentiments and spending. During the forecast period, total retail sales in the GCC nations are projected to grow in the range of 3.
Saudi Arabia and Bahrain are expected to register the fastest growth, driven mainly by increase in tourism activity and per capita income. A faster growth rate than food retail sales indicate the rising penetration of such stores. The retail e-commerce market in the GCC is expanding, given the increasing use of internet and social media, better access to secure payment gateways and gradual improvement in the delivery system.
As demand increases, the region is likely to see emergence of new e-tailers and revamp of online portals by traditional trade center signals dubai sale august 2015. Furthermore, fast-paced lifestyle and gastronomic diversity of the region have led people to develop a penchant for packaged and international foods. To meet the growing demand, several food processing units, restaurants and modern grocery retail outlets have been establishing presence in the region. Newer food service channels such as mobile trucks and online retail and delivery platforms are also making inroads.
This growth is primarily attributable to increase in the consumer base coupled with a higher per capita income, as the GCC economies stage a sustained economic recovery from the recent downturn. Respective share of most of the food categories in the overall consumption are anticipated to remain broadly unchanged through with cereals as the most consumed food category in the region. Saudi Arabia and the UAE are likely to remain the major food consumption centers during the forecast period.
The country-wise share in total GCC food consumption is anticipated to remain largely unchanged until During the forecast period, food consumption in Saudi Arabia is expected to grow at an annualized average rate of 4.
The expected growth rates largely mirror the population and GDP projections for the countries. The GCC automobile sector is dynamic and one of the faster growing sectors in the world, primarily owing to the growing population and high disposable income coupled with significant infrastructure developments in the region.
The sector, however is currently facing a slowdown amid a weak economic environment and low oil prices as consumers scale back new car purchases. Passenger Car sales will remain under pressure in but are likely to rebound in and thereon grow trade center signals dubai sale august 2015 a stable pace in anticipation of a recovery in oil.
Other factors fueling growth include increasing disposable income, growing population and availability of attractive financing options in the country.
New passenger car sales are projected at 1. Although new sales declined in and will be under pressure inwe expect to see steady growth starting as the economic environment stabilizes and creates pent-up demand. The anticipated growth is slower compared to that during last five years in view of the near-term softness in economic activity, as consumers tighten discretionary spending and delay buying new cars.
Between andpassenger cars in use in the GCC countries is anticipated to register an annual average growth rate ranging from 3. New car sales in the UAE are projected to grow at an annualized rate of 4. A rise in population coupled with demand from car rental or tourism agencies in view of increasing tourist arrivals is also expected to support new vehicles sales growth, going forward.
Backed by an active tourism market, the GCC hospitality industry remains firm on its growth trajectory. Government measures to bolster tourism activities trade center signals dubai sale august 2015 the region like encouraging private sector investments, trade center signals dubai sale august 2015 new attractions, expanding airport capacity, and increasing international promotion campaigns are providing impetus to the growth of the Hospitality sector in the region.
A thriving segment of meetings, incentives, conferences, and exhibitions MICEspate of technological advancements, and brisk development of midscale hotel properties are amongst the key factors elevating the appeal of the GCC hospitality sector.
The GCC Hospitality market is expected to grow at a 7. The market size of the GCC hospitality sector is anticipated to decline inhowever growth is likely to recover from The key operating metrics of the sector is expected trade center signals dubai sale august 2015 remain under pressure in the short-term, mainly in the UAE and Qatar, but is likely to rebound in the long-term supported by demand.
The GCC education sector is witnessing a robust growth in student enrolments coupled with a steady expansion in related infrastructure.
Population growth and rise in disposable income have supported the growth of the private education sector. Further, Government measures to encourage private sector investments alongside an increasing preference for international curricula among residents are also attracting renowned foreign education institutes to the region.
According to Alpen Capital, the total number of students in the GCC education sector is projected to reach An expanding base of school and college age population and increase in the Gross Enrollment Ratio GER across the education segments are likely to drive the growth. The number of students at private schools is projected to grow at a 5. Enrolments at public schools are anticipated to increase at an annual average of 2. During the forecast period, the number of students in pre-primary annual average of 4.
However, students at primary and secondary segments will continue to form over three-fourth of the total students. Saudi Arabia will continue to dominate the education market in the GCC by From an estimated 9.