MENA Healthcare Supply Chain Management

MENA Healthcare Supply Chain Management

Healthcare supply chain management refers to the coordination and oversight of all activities involved in the sourcing, procurement, storage, and distribution of healthcare products and services. This includes medical supplies, equipment, pharmaceuticals, and other healthcare-related items. Effective supply chain management in healthcare helps to ensure that healthcare providers have access to the right products and services at the right time, in the right place, and at the right cost.

The MENA Healthcare Supply Chain Management Market is expected to grow at a strong CAGR of 10.63% during the forecast period (2023-2030). The Middle East and North Africa (MENA) region has been experiencing significant growth in the healthcare market due to factors such as increasing population, rising healthcare expenditure, and improving healthcare infrastructure. As per the report of GCC Haelthcare report, in 2023, CHE in the GCC is estimated to have grown at a CAGR of 9.5% between 2020 and 2022 to reach US$ 104.1 billion. Healthcare expenditure in the GCC is further projected to reach US$ 135.5 billion in 2027, growing at a CAGR of 5.4% from 2022. The demand for quality healthcare services and products in the MENA region has also been increasing, which has led to a greater focus on enhancing healthcare supply chain management practices. Moreover, investing in advanced supply chain management solutions and implementing technologies such as AI and blockchain to track and manage the flow of healthcare products, improving inventory management practices, and enhancing collaboration between different stakeholders in the healthcare supply chain.

• Based on technology, the market is segmented into software, services, and hardware. Among them, the software category held the largest share of the market in 2022. Advanced inventory management systems track stock levels in real time, preventing stockouts and overstocking, thereby minimizing waste and ensuring cost-effectiveness. Moreover, demand forecasting software analyzes historical data and trends to predict future needs for medical supplies, enabling healthcare providers to place informed orders and prevent disruptions. For instance, on October 23, 2023, UAE Ministry of Finance launched digital transformation initiatives using metaverse and AI solutions.
• Based on mode od delivery, the market is segmented into on-premise, cloud-based, and web based. Among them, the cloud based category held a dominant share of the market in 2022. This is mainly due to the solutions improve inventory management, reduce costs, minimize errors, optimize supply chain logistics, and enhance collaboration across the healthcare ecosystem. With cloud-based platforms, healthcare organizations can access critical data and analytics, automate workflows, and make data-driven decisions to improve overall operational performance and patient care.
• Based on the end user, the market is categorized into healthcare manufacturers, healthcare providers, distributors, and logistics. Logistics is expected to grow with a higher CAGR during the forecast period (2023-2030). The region's unique challenges, including varying regulatory environments and geopolitical factors, make logistics a complex but essential aspect of the healthcare supply chain. Effective logistics management ensures the smooth transportation of pharmaceuticals, medical equipment, and other healthcare essentials from manufacturers to end-users.
• For a better understanding of the market adoption of the healthcare supply chain management industry, the MENA market is analyzed based on its worldwide presence in countries such as UAE, Saudi Arabia, Egypt, Kuwait, and the Rest of the MENA. The UAE Healthcare Supply Chain Management market is expected to grow at a fastest CGAR during the forecast period. This is mainly due to the presence of free zones offering tax benefits and ease of doing business attracts international players, fostering a competitive and innovative environment. Furthermore, the UAE government's focus on establishing itself as a medical tourism hub necessitates a robust and efficient healthcare supply chain infrastructure. As per the report of United Arab Emirates Ministry of Economy, in 2022, Medical tourism in the UAE is expected to grow to AED 14 billion by the end of 2021 and it could touch AED 19 billion by 2023. Dubai hopes to attract 500,000 medical tourists in 2021, through it’s Dubai Health Authority Initiatives.
• Some of the major players operating in the market include SAP, Salehiya, IQVIA Inc, NUPCO, Purehealth, Global Medical Supply Chain, AcedrA Pharmaceutical Company LLC, Cardinal Health, Oracle, Tecsys Inc.