Medical Device Market Expected to Reach $1.6 Billion

Riyadh—Amlak
Investments in the medical device market are considered to be growing at a fairly steady pace. Some recent reports have estimated the size of the medical device market in the Kingdom at approximately $1.1 billion at the beginning of 2013, and projected that this figure would rise to $1.6 billion by 2018, achieving an annual growth rate of 9% over the next five years. The medical device market in Saudi Arabia accounts for approximately 50% of the total Middle East market. Healthcare. This projected growth in the local medical device market over the coming years is attributed to a number of factors, most notably increased government spending on the healthcare sector, rising per capita income, the widespread availability of health insurance services, and massive investments in both human resources and specialized infrastructure. The government is currently working to launch and develop numerous initiatives to improve and advance the healthcare sector, which will contribute significantly to the development of all areas related to the sector. “Compu Group Medical” (CGM), one of the leading global companies in the field of e-health in Saudi Arabia and Turkey, points to the growing need to boost local production of medical devices, as it is currently limited to the production of only a few such devices. CGM also explained that this strategic move will help reduce the Kingdom’s healthcare sector’s reliance on imported medical devices, as imports account for approximately 80% of the total medical device market in Saudi Arabia. Thomas Retmeier, Vice President of Business Development at “Compu Group Medical,” said: “The wise Saudi government has adopted a proactive policy in developing healthcare infrastructure and related facilities, in addition to building new treatment centers and upgrading existing facilities by equipping them with state-of-the-art devices. Furthermore, new specialized healthcare centers are being developed and built, and all these efforts are expected to contribute to increased demand for medical devices, equipment, solutions, and services.” As for the medical industry, the Industrial Cities Authority has welcomed providing the necessary support for any project that serves the medical industry in Saudi Arabia and contributes to increasing the rate of medical manufacturing, whether through the provision of land or by facilitating financing from the relevant authorities. This came during a recent meeting between the Medical Equipment Committee—an offshoot of the Medical Committee at the Riyadh Chamber of Commerce—and the Industrial Cities Authority. The Authority’s Director General, Engineer Saleh Al-Rashid, welcomed any proposal aimed at serving national industries, particularly in the medical sector, noting that the Authority is committed to maintaining communication with the committee, receiving all feedback and suggestions, and evaluating the feasibility of addressing them. Al-Rashid added that the Authority strongly supports the medical sector and is prepared to provide land for medical industrial projects, noting that the Authority has supported a number of medical manufacturing facilities that remain in operation. He emphasized that one of the Authority’s primary objectives is to increase the rate of domestic manufacturing in Saudi Arabia, in addition to establishing a medical industrial city near major cities. Overcoming Obstacles For his part, Dr. Sami Al-Abdulkarim, Vice Chairman of the Board of Directors and Chairman of the Medical Committee, emphasized the commitment of the Medical Committee and its subcommittees to communicating with all relevant parties to unify efforts in the service of the nation and to overcome the obstacles and difficulties facing investors in the medical sector, expressing his gratitude for the Industrial Cities Authority’s engagement and responsiveness to the Medical Equipment Committee, noting that this cooperation will help achieve the goals sought by all and develop the medical equipment sector, which will have a positive impact on the Saudi medical industry. For his part, Engineer Saad Al-Mutawa, a member of the Medical Equipment Committee at the Riyadh Chamber of Commerce, speaking on behalf of the committee members, the importance of supporting and encouraging industries in the medical field, as it is considered a strategic and indispensable industry, noting that the committee seeks to join forces with the Authority to serve the medical equipment sector.