1. Latest News
  2. Submit Press Release
  1. PR Home
  2. Latest News
  3. Feeds
  4. Alerts
  5. Submit Free Press Release
  6. Journalist Account
  7. PRNewswire Distribution

"Saudi Arabia Pharmaceuticals & Healthcare Report Q2 2011" now available at Fast Market Research

Recently published research from Business Monitor International, "Saudi Arabia Pharmaceuticals & Healthcare Report Q2 2011", is now available at Fast Market Research

 
PRLog - Apr. 25, 2011 - BMI View: Predicting the exact outcome of the current popular protests in the Middle East and North Africa (MENA) is impossible at this stage. However, BMI does envisage a probable scenario in which attempts to appease public anger at social inequality, repression, price inflation and corruption leads to a long-term increase in public expenditure on medical devices and healthcare.

Saudi Arabia has already started to progress towards a better healthcare system, with inflation-busting 'healthcare system and social development' budgets between 2009 and 2011. The latest measures and concessions announced indicate that healthcare expenditure will meet or exceed BMI's forecast compound annual growth rate (CAGR) of 10.1% from 2010-15.However, in light of the economic damage to the region that is a likely consequence of political unrest, the pharmaceutical expenditure forecasts have been revised downwards. The downside risk to this forecast is the possibility of revolution, but BMI does not think this is a likely outcome.

Headline Expenditure Projections

* Pharmaceuticals: SAR12.66bn (US$3.38bn) in 2010 to SAR13.49bn (US$3.60bn) in 2011; +6.6% in local currency terms and US dollar terms. Forecast down moderately from Q111 due to pricing pressures and regional macro-economic factors.
 * Healthcare: SAR68.57bn (US$18.31bn) in 2010 to SAR75.09bn (US$20.05bn) in 2011; +9.5% in local currency terms and US dollar terms. Forecast down slightly from Q111 due to regional macro-economic factors.
 * Medical devices: SAR5.68bn (US$1.52bn) in 2010 to SAR6.46bn (US$1.73bn) in 2011; +13.8% in local currency terms and US dollar terms. Forecast unchanged down slightly from Q111 due to regional macro-economic factors.


Business Environment Rating: Saudi Arabia's score increased by 2.9%, from 55.6 out of 100 in Q111 to 57.2 in Q211. The cause was a January 2011 upgrade to the country's pharmaceutical expenditure forecast, before the outbreak of regional instability. Given the extraordinary circumstances sweeping across the region, BMI believes that it would be pre-emptive to pass judgement on the exact effects of the political unrest on the business environment. Hopefully this will be clearer by Q311.

Key Trends & Developments

* In line with the trend that infrastructure investment projects will drive increased levels of healthcare, pharmaceutical and medical device expenditure, the budget for Healthcare and Social Development has been increased by 12% to SAR86.7bn (US$18.3bn) for 2011.
 * The King Abdullah Economic City (KAEC) megaproject will diversify the Kingdom's oil-based economy and will have cost over US$50bn by the time it is completed in 2029. It is located on the coast of the Red Sea, around 100km north of Jeddah, the Kingdom's commercial hub. A total of 1mn jobs will be created in the KAEC, which will be linked to other cities in the Kingdom by a high-speed rail network currently under construction.


BMI Economic View: Saudi Arabia's non-oil sector will play an increasingly vital role in the economy as the government's initiative to diversify from the hydrocarbon sector will bolster private consumption and gross fixed capital formation (GFCF). As a result, we forecast GFCF growth to outperform all other expenditure components of GDP from 2011 through to 2015. Indeed, as part of a longer-term spending plan, the government plans to spend US$155bn in 2011 alone, investing in education and infrastructure. In our view, this will drive GFCF expansion up to 9.0% in 2011 and remain elevated over the coming years, averaging 7.8% growth between 2012 and 2015.

BMI Political View: The biggest question in late February 2011 was whether the Saud family would face public unrest unrelated to the Shi'a minority. The prevailing view is that the Kingdom is too wealthy and that the government has enough leeway to turn on the fiscal taps to ward off unrest. (Indeed, on February 23 King Abdullah announced US$37bn in extra socioeconomic spending to placate the public.) In addition, the Kingdom possesses a 125,000-strong National Guard force which is specifically designed to protect the regime from uprisings or a coup attempt by the regular military. That said, history has shown that even loyalist forces such as the Shah of Iran's top commanders and Saddam Hussein's Republican Guards abandoned their rulers with surprising speed when faced with extreme pressures. In addition, Saudi Arabia's coming generational shift within the royal family is bound to increase uncertainty. King Abdullah's health is looking increasingly fragile and a transition of executive power is looming. There is thus significant uncertainty surrounding the potential for schisms within the ruling family. While unrest in Egypt certainly had an effect on regional financial markets, instability in Saudi Arabia would be a bigger story entirely and would have pronounced implications for markets around the globe. Overall, the risk of Saudi instability should not be ruled out.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/149680_saudi_arabia_pharmaceut...

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

# # #

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

--- End ---

Click to Share

Contact Email:
***@fastmr.com Email Verified
Source:Fast Market Research
Phone:1.800.844.8156
Zip:01267
State/Province:Massachusetts - United States
Industry:Health, Medical, Research
Tags:pharmaceutical, Healthcare, containing, vaccine, Health, food, facility, drug, merck, sfda
Shortcut:prlog.org/11454209
Disclaimer:   Issuers of the press releases are solely responsible for the content of their press releases. PRLog can't be held liable for the content posted by others.   Report Abuse

Latest Press Releases By “

More...

Trending News...



  1. SiteMap
  2. Privacy Policy
  3. Terms of Service
  4. Copyright Notice
  5. About
  6. Advertise
Like PRLog?
9K2K1K
Click to Share