Qatar's pharmaceutical market set for growth

Qatar's pharmaceutical market is set to rise from a value of US$233 million in 2009 to US$419 million by 2014.

The proportion of GDP accounted for by drug spending will be 0.26 percent by this time, a latest research note released by the Business Monitor International (BMI) has said.

Qatar's per capita spending on medicines will be US$221 by 2014 and will reach US$227 by 2019 indicating a slow rise in purchasing power.

On a more fundamental level, spending by Qataris will continue to be on high-value drugs and as regional disease trends such as diabetes and hypertension play out, high purchasing power will maintain demand for patented products.

A positive sign in terms of pharmaceutical development was the construction of a new facility for Qatar Pharma.

Opened in 2009, the plant is still undergoing construction on various different aspects of its operations, though the firm will produce medical devices like blood bags, dialysis filters and dressings in 2011, reducing demand for products sourced abroad.

By 2014, the company aims to start producing essential generic drugs, including dermatological treatments, the report said.

While the country is unlikely to see a growing population capable of sustaining long-term high demand for healthcare, the decision to build the plant in Qatar was backed by the intention to export to neighbouring Arab states from a stable base.

The government is also increasing its role in the economy by spending more on public services. The banking sector raised lending to the public sector by 139.1 percent year-on-year in March 2010. Despite this, the non-oil economy is still growing at a slow rate and drug manufacturing will remain a low priority in terms of diversifying the economy.

This will be chiefly down to the limited population size which, despite government expectations, will slowly rise.

Expats and foreign construction workers comprise nearly half the entire population, but their numbers are transient. Moreover the government believes that immigrants from other Arab countries into Qatar could further boost the population, though this is unlikely to take place in the near term.