Kuwait is now ranked fifth, losing one step, of the 19 markets in the Middle East and Africa (MEA) region. It has been overtaken by Bahrain, despite a slight improvement in its composite score, “Kuwait Pharmaceuticals And Healthcare Report Q3 2010” released by Companies and Markets on Saturday said. Nevertheless, Kuwait is considered a low-risk market, reflective of a stable regulatory, economic and political environment, as well as its position within the Gulf Cooperation Council (GCC). In terms of market opportunities, Kuwait is around average for the region, indicative of the small overall size of the pharmaceutical sector, the report said. In 2009, Kuwaiti pharmaceutical market was estimated at KWD105 million ($365 million). Through to 2014, it is projected to have a compound annual growth rate (CAGR) of 5.97 percent in local currency terms, which will mean the market value will have topped KWD140 million ($520 million), although this is still modest by regional and well as global standards, the report added. Over 10-year forecast period, the CAGR is likely to fall to 5.48 percent, it said. The key drivers of growth will be healthcare modernization initiatives and demographic and epidemiological factors, with Kuwaitis, for example, suffering one of the highest rates of obesity in the world, it further said. On the negative side, counterfeiting will continue to pose threats to multinational activities in the country, although the authorities are working to enforce better protection, the report noted. Additionally, in April 2010, Kuwait's Minister of Health announced that medicines prices for 5,000 essential drugs will be reduced by 5 percent, adding that prices in the sector will be reviewed every six months. The Ministry of Health is also planning to ensure that public hospitals and pharmacies are stocked with medicines in the most highly-consumed therapeutic categories to prevent patients paying higher fees at private pharmacies. Moreover, a common GCC-wide pharmaceutical import policy has been proposed by the Kuwaiti government to alleviate cost pressures, in order to make pharmaceuticals more affordable in the private sector.
