Industry Trend Analysis - Healthcare Plans Present Upside Risk For Pharmaceutical Growth Outlook - SEPT 2017

BMI View : The development of Kuwait ' s healthcare sector highlights it ' s potential to stimulate further investment into the pharmaceutical and healthcare market, boosting our growth outlook for the country. The establishment of PPPs will be utilised as a means to alleviate pressure on the Kuwaiti government's finances, which will contribute to rising private sector contribution in the state following a range of recent announcements. Despite the Kuwaiti government's efforts to strengthen the domestic pharmaceutical industry, we expect that the majority of medicines will remain sourced from abroad from multinational drugmakers.

The transformation of Kuwait's healthcare sector will advance opportunities for private health providers and international drugmakers in the Gulf state. Highlighting the importance of Kuwait's healthcare sector to economic diversification, the next three years will see far-reaching reforms within the sector ( See ' Healthcare Reforms Support Economic Diversification Efforts ' , July 25 2016), making up the second stage of the government's KWD34bn (USD118bn) 'Kuwait Development Plan' (KDP). Whilst the full-range of commercial benefits is likely to only materialise over the long-term, we hold a more positive multi-year pharmaceutical outlook.

Market Drivers Will Support Pharmaceutical Market Growth

Improving Long-Term Picture
Kuwaut: Pharmaceutical Market Outlook (KWDbn)
f = BMI forecast. Source: UN Comtrade Database DESA/UNSD, BMI

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