The healthcare sector in Iraq is slated to grow amid increasing demand for medical supplies, pharmaceuticals, and therapeutic services, as well as the government’s efforts to reform the healthcare system and strengthen the relationship and coordination between the Ministry of Health and the private sector.
Iraq’s government approved its 2017 budget of $85.2 billion (100.7 Iraqi Dinars) projecting the country will sell its oil at an average price of $42 per barrel and export 3.75 million barrels. The Iraqi economy is expected to strengthen in 2017 resulting in a fertile ground for foreign investments and commercial opportunities to expand and modernize the country’s healthcare infrastructure. According to the research firm BMI, healthcare expenditure in Iraq is set to grow from $ 11.32bn in 2016 to $11.95bn in 2017 and $12.60bn in 2018.
Iraq is currently ranked 17th out of 33 markets in the Middle East and Africa Region in terms of attractiveness to pharmaceutical investors states a recent report by BMI. The research firm predicts the pharmaceutical and healthcare sector will sustain its long-term potential for development and forecasts sales of pharmaceuticals to increase from a projected $1.79bn in 2016 to $1.87bn in 2017 and $1.975bn in 2018. Also, pharmaceuticals’ imports will continue to cover most of the domestic demand.
According to a BMI report, Iraq’s market for medical equipment that is strongly reliant on imports is expected to grow at a CAGR of 10.8% in local currency terms in the coming years to reach IQD505.2bn in 2020. The market is set to expand by a 2015-2020 CAGR of 10.3% in US dollar terms. The research predicts the medical devices market will grow from a projected $267.1mn in 2016 to $299.9mn in 2017 and $340.3mn in 2018.