GCC Consumer, Healthcare Market to Cross $400 billion in 5 Years

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READY TO ROLL...A view of Dubai's Jebel Ali Free Zone, the regional transport hub.
READY TO ROLL…A view of Dubai’s Jebel Ali Free Zone, the regional transport hub.

DUBAI, Oct 31 — The FMCG (Fast Moving Consumer Goods) and Healthcare markets in the GCC countries are projected to cross $400 billion by 2018. This provides huge opportunities for Jafza based companies, said Jafza officials at a recently held Strategic Customer Forum organized by Jafza for companies in the FMCG and Healthcare sector in the free zone.

This was latest in the series of sector specific forums held by Jafza as a part of its ongoing efforts to maintain strategic communications with its customers. The forums provide an ideal platform to discuss global trends and opportunities while providing an opportunity to Jafza management and Jafza companies to enter into a comprehensive dialogue to find ways to take optimum advantages of emerging opportunities and also to understand how Jafza, as an enabler, can help the sector grow.

Ibrahim Mohamed Al Janahi, Deputy CEO of Jafza and Chief Commercial Officer of Economic Zones World (EZW), the parent company of the free zone, commenting on the promising FMCG market outlook, said, “The GCC retail market is poised to cross $270 billion mark in the next 5 years. The growth is largely driven by the food and beverage sector, which accounted for almost half of the GCC’s retail market in 2012. The value of the GCC’s healthcare market during the same period is expected to cross $133 billion, which will enable the FMCG and Healthcare market to exceed $400 billion. This provides huge opportunities for Jafza-based companies in the sector.

“Since the growth in the sector is largely driven by a fast-growing young population, increasing disposable income and per capita spending, as well as people’s changing consumption patterns, the growth momentum is expected to stay for a longer time. We must take maximum advantage of emerging opportunities in the region.” Al Janahi’s observations were based on a recent forecast by Alpen Capital which noted that the GCC retail industry is expected to cross the $270 mark by 2016. According to a recent Frost and Sullivan report the healthcare market in the GCC is to grow to over $133 billion by 2018. The global consultancy said that healthcare spending in the GCC is projected to grow at a compound annual growth rate of 10.3 percent from 2010 to 2018, due to the expanding population, higher incidence of lifestyle diseases, and deeper insurance penetration.

Senior officials from Jafza and the top FMCG and Healthcare companies, such as Al Ghurair Foods, Food Specialties Limited, Nestle, Wild Flavours, Colgate-Palmolive, Beirsdorf, Roche Diagnostics, Quest Vitamins and Pharmatrade among many others, joined the discussions at the forum alongside Jafza partners including Dubai Customs, Dubai Trade, Trakhees, Dubai Municipality and Ministry of Health, who addressed customer issues and queries pertaining to their respective areas.

Jafza is currently home to more than 700 world’s finest companies in the FMCG and healthcare sectors which includes names such as Unilever, Proctor and Gambles, Nestle, Colgate Palmolive, FSL, Alokozay, Mars, Gulf Food Industries Company, Beiersdorf, Roche, Quest Vitamins and Pharmatrade among others. The sector has seen four-fold growth in the number of companies in the last 10 years growing from 175 companies in 2002 to 709 in 2012. The sector is estimated to have generated trade worth over $5 billion in 2012 posting a growth of over 50% in the last four years. –Wam

 

 

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