EXECUTIVE SUMMARY
In recent years, Qatar has been exponentially expanding its national healthcare system to cater to the needs of its people and support economic diversification. The country has been developing its infrastructure including hospi- tals, diagnostic labs, and clinics in addition to the development of local clinicians, physicians and specialised doctors. In addition to all these factors, a rapidly rising and ageing population in the country has also propelled the government to upgrade its public healthcare infrastructure. Public healthcare spending in Qatar is scheduled to grow from US$ 4.2 bn in 2016 to US$ 7.4 bn in 2026, at a CAGR of 5.8%. Private healthcare spending is expected to grow faster given efforts to move some healthcare projects into the private sector with an expected CAGR of 8.8% and a market share shift from 15% in 2016 to 20% by 2026.
The main challenge to Qatar’s healthcare and pharmaceuticals sector is the ongoing political and economic boycott of the country by its GCC and MENA neighbours. While Qatar has so far shown itself to be quite resilient in the face of this ongoing challenge, the boycott has posed challenges to Qatar’s manufacturing and exporting sectors, forcing the country to find alternative import and export partners to replace GCC trading partners and ensure the availability of sufficient raw materials for domestic manufacturing. The recent announcement by Qatari German Medical Devices that it would diversify beyond medical devices to meet demand for packaging products in various sectors of the Qatari economy is a case in point that illustrates the types of challenges arising from the boycott as well as Qatar’s ability to face them using domestic resources and international outreach. The COVID-19 pandemic has introduced additional challenges to the healthcare sector as development funds are diverted toward virus treatment and containment measures.