A moderate acceleration in economic expansion from 2017 will support continuous investments into Qatar’s healthcare sector, providing greater opportunities for multinational drug makers in the process, BMI Research has said in a report.
On the back of ongoing massive investments in infrastructure projects for the FIFA 2022 World Cup, health infrastructure projects in Qatar will become increasingly subject to lengthy construction delays, it said.
“Over the long term, however, the Qatari government will remain committed to the delivery of healthcare in the country, supported by the state’s 20-year blueprint for new health infrastructure projects - many of which include primary healthcare facilities, the Fitch Group company said in a recent report.
According to BMI, Qatar will cut back planned spending on health infrastructure projects over the coming years, as financial resources are diverted towards preparation for the forthcoming FIFA 2022 World Cup.
The Public Works Authority’s (Ashghal) total 2016 budget is estimated to amount between QR15bn and QR17bn, down from a previous estimate of QR25bn.
“We expect that Qatar’s large-scale infrastructure projects directly related to the FIFA 20 22 World Cup will be the government’s core expenditure focus over the coming years, with the potential for more peripheral projects unrelated to the event to be delayed or even mothballed,” BMI Research said.
Despite this, BMI Research believes the Qatari government remains committed to the provision of healthcare in Qatar over the long term. As part of the country’s National Health Strategy (2011-2016), the Supreme Council of Health (SCH) developed a 20-year blueprint (2013-2033) for improving healthcare across the state.
The ‘Qatar Health Facilities Master Plan’ (QHFMP) will make up a significant component of this roadmap, responsible for the planning and delivery of new health infrastructure projects. The proposal aims to build between 60 and 70 new primary healthcare facilities, as well as eight diagnostic and treatment units, a communicable diseases facility, a rehabilitation institute and a women’s wellness centre.
Although BMI Research expects “many of the planned health infrastructure projects to go ahead, it is likely they will face continuous delays as the focus remains skewed towards the FIFA World Cup in 2022. As it stands, many of the planned primary health facilities have already missed their initial deadlines. Almost two-thirds of planned spending on healthcare facilities in Qatar has been cut in 2016 alone. Access to healthcare, however, will not be significantly affected by these delays. We consider it likely that many of the previously planned projects were highly ambitious and unrealistic given the spending commitments on infrastructure projects for the 2022 FIFA World Cup.”
From the latest SCH report in 2014, the council estimates that by 2022, the number of hospitals, healthcare centres and facilities in Qatar is planned to almost double to 66 from 35 in 2014. The number of hospital beds is also planned to grow to 4,701 from 2,100 beds currently.
Investment is also occurring within the private sector with a total of 73 new healthcare facilities in the pipeline. These developments will go some way in meeting the rapid uptick in demand for healthcare services in Qatar, particularly as the burden on non-communicable diseases, predominantly diabetes and cancer, continue to increase, BMI Research said.
Unlike its neighbours, Qatar will continue to benefit from large investments in infrastructure projects for the FIFA 2022 World Cup. This will ensure that Qatar’s economic growth trajectory remains well above those of other Gulf states.
“It is the view of our Country Risk team that 2016 marks the bottom for Qatar’s real economic growth slowdown, and the country will a see moderate acceleration in economic expansion from 2017 as global hydrocarbon prices edge up. We forecast Brent to average $46.5/b in 2016, $57/b in 2017 and $68 /b in 2018, compared to $55.17/b in 2015.
“The country’s growth trajectory will follow a similar pattern, and we forecast real GDP growth of 4 .4% in 2016 and 4.8% in 2017, compared to an estimated 5.5% in 2015.
“This will help support the financing of health infrastructure projects in Qatar over the coming years, particularly as both healthcare costs and population growth increase rapidly,” BMI Research said.
Business / Business
Moderate acceleration in economic expansion from 2017 to ‘support Qatar healthcare sector’
Qatar remains committed to the provision of healthcare in the country over the long term
