Business | Investment
Gulf investment in healthcare to soar
Investment in healthcare in the Gulf could increase by more 400 per cent to $60 billion in the next 17 years, according to industry sources.
- By Nadia SaleemStaff Reporter
- Published: 01:04 February 9, 2008
- Expenditure could increase by over 400% in 17 years.
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Dubai: Investment in healthcare in the Gulf could increase by more 400 per cent to $60 billion in the next 17 years, according to industry sources.
"There is a change from traditional medicines to biotech medicines. In the past five years, most of the pharmaceutical companies have bought into the bio-tech industry," said Abdul Qader Al Khayyat, executive director of DuBiotech.
Biotechnology modifies bio organisms and is responsible for various aspects of human well being.
Genetic engineering, which is being used all over the globe in a range of fields, progresses under biotechnology. Biotech medicines are being used to treat diseases of the heart and joints, Aids, multiple sclerosis, as well as many cancers.
Biotech crops in GCC-5
According to the Annual Biotechnology Report of 2007, production of biotech crops does not exist in five countries of the Gulf Cooperation Council (GCC), referred to as the GCC-5. They are Bahrain, Kuwait, Oman, Qatar and UAE.
In these countries, no biotech-enhanced crop is under development; therefore none will be available in the market in the coming year. Although they import biotech-enhanced corn and soybeans from the US and other countries, there is no production in the GCC-5.
The GCC will face an unparalleled demand for healthcare, according to The Arab World Competitiveness Report of 2007.
The total estimated healthcare expenditure could reach $60 billion in 2025, a major leap from $12 billion that is being spent today.
As this growth in demand is exclusive to the region, it needs to think about investment in technologies of the future that will be the sources of their reliability, experts say.
The region's agriculture growth has been slow with only a 2.5-fold rise over the past 20 years. As a result, it depends heavily on imports, which add up to $9 billion. The sluggish GCC food production has become the top agenda to be addressed.
Worldwide impact
"The impact is worldwide, not just in this region. We should be ready and get involved whether it is by research or application. It is important for the long term strategy to be interactive with biotechnology," said Al Khayyat.
The US National Science Foundation has predicted that global investment in the biotech and nanotech industries will exceed $1 trillion in the next 10-15 years.
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