The Medical Devices Market in Middle East & Africa: Trends, Expectations and Opportunities

The Middle East and Africa (MEA) market for medical devices is growing exponentially year-on-year since 2014, and this expansion is expected to continue at 5%, or more, in the coming years. [i] From a value of $7.5 billion in 2016, the market is estimated to reach $10.1 billion by the end of 2021[ii] and $31.6 billion by 2025 [iii]. This makes the region one of the fastest-growing medical devices market in the world. 

Clearly, for international manufacturers within the sector, this means significant opportunities for expansion and creating new successful partnerships within the MEA region.

Booming economies and changing demographics

Most economies in the MEA are booming, but there are other factors fuelling this growth: such as advances in technology. Across the MEA, we are seeing more state investment in healthcare, the increased take-up of private healthcare, a growing elderly population and a more health-conscious younger demographic. The result has been that the demand for medical devices is surging in almost every sector.

Changing lifestyles, linked to rising affluence in the MEA population, have led to an increased prevalence of modern diseases, such as obesity and diabetes, contributing further to demand for healthcare services. While these trends have been seen across a wide range of medical devices, especially the in-vitro diagnostics niche – largely driven by increases in elderly populations – the neurology device sector is also growing, due to better disease detection rates and a growth in research ventures. 

Rising populations means a growing demand for medical devices

Right now, the medical devices market is diversely segmented into hospitals, laboratories, clinics, pharmacies and dermatological/cosmetic operators, with hospitals being the biggest customer by far with over 60% of the market share. And this share continues to grow in line with population increases fuelling demand for diagnosis and treatment, along with state investment in new hospitals, medical facilities and research centres.

According to US FDA data, Class II devices make up the fastest-growing segment [iv]. Class I devices, associated with minimal risk, are subject to fewer controls and, as a result, the market is already saturated. 

Country reports by export.gov [v] found the following products were most in demand across most MEA markets: 

• Diagnostic imaging equipment
• Oncology and radiology equipment 
• Disposable
• Surgical and medical equipment
• ICU monitoring equipment
• Lab supplies
• Mobile clinics

The same research firm also stated that Saudi Arabia’s medical devices market represented a ‘best prospect industry sector’. Indeed, Saudi Arabia remains the largest generator of revenue for the medical device market in the Gulf region, mostly due to enhanced public sector spending, while Qatar is also seeing good prospects for growth. Rapidly evolving health infrastructure and increased research activity are thought to be the key drivers here. 

The UAE is seeing an upward trajectory in the pharma sector, closely mirrored by similar trends in Egypt and Algeria, where companies are producing and exporting into the Asian and African markets [vi]. ‘Vision 2021’[vii] a plan to bolster preventative measures for conditions such as cardiovascular disease, obesity and diabetes is in one initiative driving this phenomenon in the UAE.

Established players to date include Medtronic, Johnson & Johnson, Philips, Siemens, Roche, Becton Dickinson, Abbott Laboratories, Novartis, Olympus Corporation, GE, Biomerica, Baxter International, Smith and Nephew, BioMérieux, Boston Scientific, Drager, Varian, Elekta and Zimmer Biomet. Many of these have been expanding their operations in the MEA region, especially with regards to Qatar, UAE and Iraq. 

Meanwhile, new ventures are appearing all the time. A one-year pilot scheme launched by Fujifilm’s healthcare division in partnership with Saudi Arabia’s Ministry of Health to detect colon cancer was so successful that the program has now been extended. The firm is also in talks with state bodies in the UAE and Kuwait, to run similar programs [viii].

Navigating compliance and regulation 

The challenge for companies looking to move into the MEA is getting the right expertise when it comes to optimising their supply chain, especially given that medical device regulations often vary from one MEA country to another. 

The good news is that, in recent years, there has been considerable progress made in standardizing regulations in line with global guidelines. The International Medical Devices Regulators Forum (IMDRF) is working toward the harmonization of device regulation to simplify the entry of international medical device companies into the MEA [ix]. In addition, the current pandemic has meant a lot of rules, especially in relation to PPE have been relaxed and many companies are working together to create more innovations. So it’s an exciting time for the industry, especially for those firms with supply chain partners that can help them take full advantage of the opportunities out there. 

Optimising the supply chain is the key to success

Even those already established in the MEA are realising the importance of having a digitally optimised supply chain in the region, especially given new challenges faced as a result of the Covid-19 pandemic. 

This is where Pedigri Technologies comes in. Our AI-powered platforms and regulatory compliant import process have been designed to digitally transform the supply chain, providing real-time visibility and efficiencies when it comes to regulatory issues, streamlining business processes and powering cost efficiencies, while at the same time improving customer satisfaction at every touchpoint of the supply chain.

Already known as a great business destination due to excellent infrastructure and low tax rates, reforms in the UAE, Saudi Arabia, Kuwait and Bahrain, among others, have dramatically improved the business environment and more companies are taking advantage of the opportunities now being created in the MEA. Clearly, in the Middle East and Africa, there are huge opportunities now for companies involved in the manufacturing and distribution of medical devices. Those that are regulatory compliant and digitally-ready will benefit most.

• [i] https://www.grandviewresearch.com/industry-analysis/middle-east-medical-device-market
• [ii] https://www.statista.com/statistics/914705/MEA-market-size-of-medical-devices/
• [iii] https://www.grandviewresearch.com/press-release/middle-east-medical-device-market-analysis
• [iv] https://www.grandviewresearch.com/press-release/middle-east-medical-device-market-analysis
• [v] https://www.trade.gov/knowledge-product/saudi-arabia-medical-devices
• [vi] https://www.kinetic.ae/blog/why-MEA-is-one-of-the-fastest-growing-regions-in-the-world-for-the-pharma-and-medical-devices-industries
• [vii] https://www.vision2021.ae/en/home
• [viii] https://pharmaboardroom.com/articles/medtech-firms-saudi-strategies/
• [ix] https://decisionresourcesgroup.com/blog/middle-eastern-medical-device-markets-region-opportunities/