Oil Prices And Their Impact On Healthcare Expenditure: Russia & Saudi Arabia

BMI View : Large oil and gas sectors have benefited the healthcare sectors of Russia and Saudi Arabia as the provision of healthcare has largely been funded through state revenues. Elevated oil prices over the last decade saw these countries accumulate considerable surpluses. Where Russia focused early on in delivering more improvements in healthcare, Saudi Arabia has only begun to accelerate its commitment to healthcare expenditure, owing to the Arab Spring. While oil and gas exposure has historically reaped considerable benefits for these two countries, in the future, declining oil prices will make it more difficult to sustain expansion in healthcare spending.

Russia and Saudi Arabia are united by their wealth in oil and gas reserves, but the two countries have experienced a different path in the development of their respective healthcare systems and to their overall national development. These two countries also provide a snapshot on the manner in which healthcare systems from emerging markets transition from modest beginnings to much more ambitious projects.

Russia: A Decade Of Advancement Faces Serious Headwinds

Healthcare Spending Boom Spurred By Oil Price Runup
Russian Healthcare Expenditure (LHS) and Brent Crude Price, USD (RHS)

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Related sectors of this article: Pharmaceuticals & Healthcare
Geography: Global, Russia, Saudi Arabia

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