BMI View: Saudi Arabia's medical device market is in a period of stabilisation after a sharp contraction due to the low oil price, which reduced government revenue and its ability to spend on healthcare products.
A change in the succession order, with the reversal of fiscal consolidation measures and improvement in consumer and business confidence, will balance previous declines. Market growth will remain subdued compared with high double-digit growth seen in the 2011-13 period.
Latest Updates And Key Forecasts
Following market forecast downgrades in September and December 2016 due to the re-evaluation of the macroeconomic outlook and the consequential impact on the healthcare systems, we maintain our forecast and expect the market to grow by 2.6% in 2017, which is below the 5.7% previously projected.
This expansion follows two years of contractions. The market will now grow by a 2016-2021 CAGR of 4.6%, which will take the value to SAR9.1bn (USD2.4bn).