Summary
Kuwait's healthcare system is both efficient and effective, although the country's pharmaceutical industry is in its nascent stage. In 2005, the drug market was worth US$360mn, with BMI forecasting this to rise to around US$525mn by 2010. Over-the-counter (OTC) and generic drugs represent a minor proportion of the total drug market (at 10% and 15% respectively), due to the strong preference for brands. The forecast period is likely to witness little relative change in the pharmaceutical market, but the absolute values will continue to rise at a steady pace.
However, as healthcare is provided free to all Kuwaiti citizens, the pressure on public finances will eventually result in a shifting of some financial responsibility away from the state, although this is a longer-term possibility. In the meantime, reimbursed drugs will remain available through the 'Circular 365' list, which covers around 70 active ingredients, with the government increasingly looking to use generics in order to cut costs. Expatriates pay mandatory health insurance premiums, and can only access a limited list of reimbursed medicines.
BMI's adjusted Business Environment Rankings for the Middle East reveal that Kuwait is in 4th place, alongside Oman, South Africa and Saudi Arabia. Although the country's population renders the overall market size small, the advanced nature of its economy will provide some of the drivers. Additionally, Kuwait's limited domestic manufacturing industry and lack of technological capabilities does provide an opportunity for foreign drugmakers, although the outlook is tempered somewhat by the poor intellectual property regime in the country.
The weak domestic drug manufacturing sector means that foreign imports dominate, although future regional harmonisation with other Gulf Cooperation Council (GCC) states may help to mitigate this dependency, as well as unify prices. In the meantime, drug prices in Kuwait will remain among the highest in the Gulf region, which is causing a growing number of people to purchase healthcare outside the country. However, regional harmonisation is likely to introduce lower prices in the longer term. Meanwhile, the government is planning to invest record oil windfalls in its health sector, a common policy in the Gulf as countries seek to make the most of the current favourable economic climate. Download a PDF or order a print copy and get three quarterly updates.
|
