The UAE healthcare market will surge to over AED103 billion (US$28 billion) in 2021 from the current AED64 billion, driven by a shift in demand for preventive care, a rise in specialist medical services, more efficiently integrated healthcare solutions, as well as the high growth potential within specific medical device and pharmaceutical sub-sectors, said a leading research company MENA Research Partners (MRP) in a new study.
Medical tourism and the implementation of mandatory insurance will also contribute to the sector’s growth.
The country aims to achieve a world-class healthcare system and become among the leading countries in quality of healthcare, not only regionally, but in the world, according to the UAE Vision 2021 National Agenda. To achieve that, the National Agenda emphasises the importance of preventive medicine and seeks to reduce lifestyle-related diseases to ensure a longer, healthier life for citizens.
“The healthcare sector in the UAE is witnessing structural shifts and, as a result, is changing fast to adapt to the demands of a younger, more health-conscious population asking for preventive care rather than curative care and, along the way, is more engaged in its own well-being. Being itself a digitally savvy population that enjoys one of the highest digital connectivity in the world, the new generation is redrawing the blueprints of the future of healthcare in the UAE. It is looking for more personalised and specialist healthcare. While doing this, it is moving more towards interaction and self-management which is aided by the ever-growing digital technology in the sector,” said Mr Anthony Hobeika, CEO of MRP.
The findings reveal that, while the healthcare market as a whole has been growing at over 10% y-o-y since 2015 and is expected to continue in this trajectory, there will be an upsurge of 15% to 25% in some subsectors across the three pillars of the market: healthcare providers – currently accounting for at 76% of the total market; medical devices – estimated at 6%; and pharmaceuticals and life sciences – estimated at 18%.
In its report, MRP identified a number of niche areas that health providers need to cater over the next few years. The research also identifies key mega-trends shaping demand for and delivery of healthcare as well as niche trends influencing medical provider models. M
AED1 = US$0.2