Lebanon Medical Devices Report Q2 2016

Lebanon Medical Devices Report Q2 2016

BMI View: The market will record moderate growth over the forecast period, and remain attractive to launch medical devices in the Levant region. Market drivers will include the demographic boost provided by the influx of Syrian refugees, the increasing incidence of chronic diseases, medical tourism, the predominance of private healthcare providers, import reliance and stronger market regulation. However, political instability, widespread corruption, economic stagnation and high market competition will constrain market growth.

We maintain that the market will record a moderate 2014-2019 CAGR of 7.1% in US dollar terms, slightly down from a 2009-2014 CAGR of 8.0%, which will take the value to USD339.4mn. The local currency tends to be pegged to the US dollar, but the lower US dollar growth will reflect a slight depreciation of the local currency against the US dollar over the forecast period.

With little domestic manufacturing capability, the country will continue to rely heavily on imports to supply the market in the foreseeable future. Imports declined by 0.5% in US dollar terms to USD228.8mn in 2014, which was the country's second highest ever import level, but recorded a 2009-2014 CAGR of 8.0%.