Pharmaceutical Localization
A country’s economic performance is directly tied to the health of its people since a healthier populace produces more productive workers. The Gulf of Corporation (GCC) has recognized this important relationship and made healthcare reform a primary priority as part of its ambitious Vision 2030. They took numerous steps regarding healthcare investments.
This article will walk you through the impact of those steps.
Role of Pharmaceutical Localization in Middle East Healthcare
Localization of pharmaceutical manufacturing in the Middle East will highly impact healthcare in the region. Pharmaceutical drugs should be produced locally to ensure the supply of the medicine is stable and their response times will be very quick in case of a health crisis. The primary benefit or advantage in the localization of pharmaceutical production supports improved healthcare services because manufacturers want their products to have high standards.
It can support job creation, attract investments, and reduce government spending in some sectors. Among the other benefits of localizing pharmaceutical manufacturing are low import costs, labor costs, and exports to different countries. It can lead to self-sufficiency and empower national healthcare systems.
A pharmaceutical manufacturing localization considered under the leadership umbrella of Saudi Arabia is aimed at implementing the National Strategy on Biotechnology to transform the kingdom into a research, innovation, and pharmaceutical manufacturing world leader.
Development in the Infrastructure and Medical Tourism
A key component of its healthcare policy is the establishment of medical cities, which aim to establish the Middle East as a leader in healthcare. These modern institutions, such as King Abdullah Medical City in Makkah and King Fahad Medical City in Riyadh, offer a variety of medical services and advanced technology and are excellent illustrations of the Kingdom’s significant infrastructure investments.
Saudi Arabia and other nations are constructing hotels and apartments as part of their efforts to boost medical tourism. Programs to integrate healthcare with historical and cultural trips are being developed, particularly for religious tourists.
Role of Public-Private Partnerships (PPP)
Public-Private partnership schemes are the best approach in the Middle East to enhance healthcare services, infrastructure, and quality. To build private sector involvement and participation, the Ministry of Health and other government institutions aggressively develop stringent PPP frameworks. It is a joint venture between government and private businesses, in which the latter provides finance, design capabilities, construction and operational knowledge. This allows the government to build health facilities without necessarily burdening itself with the entire costs. PPPs, to this extent, afford the government many benefits in healthcare development.
They help alleviate its financial burden by first seeking private financing to aid upgrade infrastructural services such as hospitals and clinics. They finish new structures faster than the time it would take the public sector due to their efficiency and expertise in design and construction in increasing access to health care. Thirdly, effective management and operating systems imported by private operators can improve the allocation of resources within health facilities, thereby saving the government some money in the long term.
For instance, the MOH awarded a PPP to Altakassusi Alliance Medical in June to upgrade radiology and imaging services at seven hospitals for more than one million people. The ministry aims to increase private sector utilization from 40 percent to 65 percent by privatizing 2,300 health facilities, including 290 hospitals. This will also introduce the cooperative network for hospital support for the first time in the country, which will raise the standard of care in rural areas.
Digital Health Transformation
Another key component of healthcare policy is the advancement of telemedicine and digital health innovations. Due to the Ministry of Health’s vigorous promotion of telemedicine, about ten teleradiology businesses have been established. With 60% of the GCC’s healthcare budget going into healthcare, the government invests a significant amount of money in this field. Telemedicine emerges as a powerful tool in the development and growth of the healthcare sector.
To begin with, the Ministry of Health (MOH) prioritized telemedicine even before the COVID-19 epidemic, making treatments possible through remote communication. Investments, achieved US$39 billion in 2018 as compared to US$36.8 billion in 2022 and above US$65 billion by 2030. Low public knowledge notwithstanding, the Seha, the digital health application that was launched in 2018, had by the beginning of 2020 enabled as many as 1,877,440 online consultations. Increasing smartphone use and a growing need to deliver to an increasingly large population in rural places is driving the transition.
Conclusion
The strategic investment by the GCC in the health sector of the region encompasses pharmaceutical localization, infrastructure development, and digital health initiatives, promising to change healthcare offerings in the region. These programs contribute to improving the wellbeing of the population and stimulating local economic activity as they enhance self-sufficiency locally, increase access to quality care, and attract medical tourism. With a continuing focus on healthcare innovation and cooperation, the GCC is in a great position to be the leader worldwide in such healthcare services.
