The first half of 2020 was interrupted by COVID-19, and now many regions prepare to return to normal in the coming months. The measures to help contain the virus have temporarily changed the way businesses operate, but we are starting to see restrictions lifted.
This pause in worldwide industries has meant that there will be an increase in business once the virus is no longer a threat. Many sectors will be looking to increase revenue from lost business, but the medical devices sector has a different challenge – to produce the amount of equipment needed across the globe.
The Middle East is a hub for investment, and the coronavirus has not impacted this. Investment here is much higher than in other countries, for a multitude of reasons.
In this article, we take a look at why now is an excellent time for Medical Devices companies to invest in the Middle East.
Coronavirus and Medical Device Production
Due to coronavirus, the demand for medical device products has been higher in recent years than in living memory. Worldwide, stocks of PPE and medical equipment have been in much-needed demand, with the eyes of the world on producers of this equipment.
One crucial issue that the coronavirus outbreak has highlighted is the shortage of medical device equipment during a pandemic. Governments across the globe are now taking steps to ensure this never happens again, hence an increase in medical device production.
I will go through the rise in medical device production in the MENA a little later. First, let’s look at general investment in the Middle East.
Why Are So Many Businesses Investing in the Middle East?
The Middle East and North Africa (MENA) is a lucrative place to grow your business. The region’s economy has gone from strength to strength in the last few decades, showing no signs of slowing down.
Given a great start by the oil industry, the MENA has become an economic giant in its own right. The UAE economy, in particular, has benefitted from high government spending on education and infrastructure, healthy tourism industry and high investment from overseas businesses thanks to low tax rates.
Additionally, recent reforms in Egypt and the Arabian Gulf have accelerated economic growth. The World Bank announced that MENA growth in 2020 is forecast to reach 3.4 per cent, up from 1.5 per cent in 2019. A spokesperson for the bank said
, “The expected upswing [in 2020] from previous growth is partially driven by ongoing policy reforms to diversify the economy and strengthen the business environment.”
Four out of the top ten countries recognised for improving business climates are from the MENA – Saudi Arabia, Jordan, Bahrain and Kuwait have all implemented reforms which have allowed businesses to grow. In the past year, economies in the Gulf region have implemented 35 business-climate improving measures.
The governments of the MENA are focused on allowing their countries to grow economically, and many organisations from across the world are currently taking advantage.
Next, let’s take a look at the medical devices sector in the region, and why now is the right time to expand into the MENA.
Medical Devices in the Middle East
Spending on healthcare and all associated industries in the Middle East is on an upward trajectory. Because of this, the region has become a key growth target for manufacturers of medical devices and equipment.
The MENA medical device market is predicted to grow to a value of US $9.8 billion by the end of 2020, with the UAE remaining a predominant base for multinational organisation to establish regional headquarters
The growth is twofold. In the first instance, increased demand for better healthcare in MENA countries is due to factors such as an ageing population and a rise in unhealthy lifestyles. More residents in the area, and across the world, require healthcare, and thus, medical devices.
As we move forward, healthcare will remain a top priority for MENA governments, leading to a constant need for high-quality medical device providers in the region.
Additionally, low tax rates, particularly in the UAE, are attractive to worldwide suppliers of medical devices and equipment who have flocked to the region to do business. The Middle East and in particular, the UAE is historically an excellent location for trade; it is known as the gateway between the West and the Far East.
Working With a Regional Service Provider to Grow Your Medical Devices Business
As I have highlighted in this article, the Middle East is one of the advantageous places to expand your medical device business. However, one challenge that some organisations cite is the difficulty in understanding the complex infrastructure and requirements due to the fact that the countries in the MENA region are not homogeneous.
For new businesses, recruiting can be challenging. For this reason, Kinetic offers expert recruitment services to medical devices organisations looking to recruit the employees they need from MENA and overseas talent.
To find out more about how we can help you recruit top employees for your medical device organisation, you can contact us with your query here