ME medical industry could hit 25% of GDP

TECHNOLOGY GROWTH: The medical technology industry in the ME is tipped for huge growth. (Getty Image)

The medical sector is tipped to contribute 25 percent of the Middle East’s GDP, according to the co-founder of a US-based medical technology organisation.

Ascent Medical Technology Funds has predicted that growth in the sector will increase from 10 to 25 percent of GDP contribution in the future.

A survey of regional healthcare experts and economists, carried out on behalf of the organisation, found that 94 percent believed that demand for medical technology would rise considerably in the next three years.

Furthermore, 90 percent named the emerging markets of Eastern Europe, the Middle East and Africa as hotspots for the global medical industry.

Peggy Farley, managing director of the General Partner and co-founder of the fund said: “The Middle East is a very attractive market for foreign investments right now, especially in the medical technology sector which, at best, can be described as being at the 'grass root stage'.”

With the right infrastructure in place, the region could become a hub for the manufacturing of medical devices that comply with international standards.

“The region could become a true medical centre; a hive of activity for new medical discovery,” she added.

Such a move would have knock on effects for job creation, as well as improving the health of the region’s population, Farley said.

The Ascent Medical Technology Fund was established in 2006 and is dedicated to advancing medical innovation through investing in early commercialisation stage companies based in the US and the Middle East.

Companies that belong to the fund have to have sufficient technologies to positively effect dramatic changes in the treatment of serious global health issues such as cardiovascular disease and cancer.

The survey was conducted on behalf of Eucomed by McKinsey & Company.

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