Private equity attracted to health sector

Gulf-based private equity firms searching for a relatively safe shelter for investments are increasingly considering the regional health industry.

Health expenses in the Gulf are largely shouldered by the state, but the rising cost means that most governments are trying to pass some of the burden on to the private sector – opening up a potentially lucrative and stable industry to private equity players.

“According to all measures, healthcare in our part of the world is a very underpenetrated market,” says Achmed Al-Shahrabani of Abraaj Capital. “Even now, where we are seeing drops in other sectors, healthcare continues to show good growth rates across the region.”