Expect a healthier and more sustainable MENA healthcare system, says Deutsche Bank analyst

Changing healthcare regulations and overall restructuring plans from regional Gulf economies are likely to impact the private healthcare sector and create a healthier and more sustainable system, according to Marc Hammoud, Telecoms, Consumer and Healthcare analyst at Deutsche Bank. 

The current global economic malaise and potential policy solutions specifically related to MENA were discussed last week in Dubai at Deutsche Bank’s annual regional investor conference, dbAccess MENA Healthcare, where Mr Hammoud and a number of the region’s leading healthcare providers addressed a select group of local and international institutional investors.

Statistics released up until 2015 by regional healthcare regulators continue to show increasing patient volumes in the mid to high single-digit rates supported by intrinsic growth drivers - population growth, rising prevalence of lifestyle-related diseases, increased health awareness, better quality of medical facilities and services, wider range of medical services, ageing population, and high per capita income, according to Deutsche Bank analysts. 

Mr Hammoud said, “While we remain positive on the outlook of regional healthcare markets despite ongoing regulatory and economic changes, competition has clearly increased over the past couple of years.” 

“As a result, we have been seeing a wave of M&A activity instigated by some of the UAE operators like NMC Health, Mediclinic, Avivo Group, and Amanat. M&A activity has been conducted to enter either new geographies or niche specialties - we expect consolidation within the regional healthcare sector to continue, and most likely intensify, as the market remains relatively fragmented and operators seek to reach critical size to run operations more efficiently.” 

Commenting on the conference, Deutsche Bank’s Head of Equities for MENA, Ahmed Beydoun, said: “Despite current headwinds facing emerging markets, the global economy continues to look to the region as a bellwether for growth. That we have chosen to host our conference for the fourth year in a row in Dubai reflects the city’s rising status as a leading financial centre.” 

Mr Beydoun added, “MENA Healthcare continues to draw attention from institutional investors, the consolidation theme continues and regulation remains fluid.  This event is now in its fourth year, and we continue to receive positive feedback for hosting a focused, sector specific event.”

dbAccess MENA Healthcare is Deutsche Bank’s annual regional flagship conference, this year hosting over 60 local and international institutional investors, policy makers and healthcare organisations over two-days.