Monday 18 November 2019
 
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GCC healthcare spend ‘to top $30bn by 2021’

DUBAI, September 29, 2019

Government spending on health care in the GCC will rise to $30.5 billion by 2021, from just $2.4 billion in 2016, an annual growth rate of more than 9 per cent, said the organisers of the upcoming Mena Health Insurance Congress in Dubai, UAE.

Government spending on health care in the GCC will rise to $30.5 billion by 2021, from just $2.4 billion in 2016, an annual growth rate of more than 9 per cent, said the organisers of the upcoming Mena Health Insurance Congress in Dubai, UAE, citing an Oxford Economics forecast.

The fifth annual edition of the event will take place at Millennium Airport Hotel on October 1. It will highlight evolving trends in healthcare financing and service delivery.

Claimed to be the largest gathering of its kind, the three-day event will have as key areas of discussion the efforts undertaken to develop health insurance market in Mena, significant roles of insurers and healthcare providers, main success strategies for healthcare market, global trends, regulatory issues and managing rising healthcare expenses, among others.

“The credentialed speakers will address complex topics for improving operational efficiencies and cost mitigation in healthcare sector and viable insurance payment models through thought-provoking presentations, interactive panel discussions and workshops,” said Dr Doaa, managing director of Maarefah Management - the organisers of the show.

Saudi Arabia is expanding on the health insurance sector with recent policy changes and improved spending on healthcare. With the predicted population growth, the government is required to provide adequate care to patients, as well as reinforce the nation’s healthcare system.

With about 2 per cent yearly population growth forecast, the share of those in the age group of 65 or older is expected to move up by about 7 per cent, touching a figure of 1.4m by 2021 - a marked jump from about 980,000 in 2016. This can apparently speed up overall demand for health care services for the future.

Private health spending in the GCC will pick up the pace to meet rising demand over this period, it says, adding these would be aided by government policy, mainly Vision 2030, according to the Oxford Economics forecast. The UAE and Saudi Arabia command about 80 per cent of the insurance premiums in the GCC.

If the trend is anything to go by, the GCC, significant changes in government health insurance regulations and rising populations can generate growth opportunities for private health insurers over the next three years.

After the successful implementation of mandatory health insurance by the UAE, Saudi Arabia is going for mandatory health insurance for all employees in the private sector and their families. In fact, countries are considering mandatory health insurance programmes, hoping that it would help push up the medical infrastructure.  – TradeArabia News Service
 




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