UAE Healthcare Market to Reach USD 20 Billion in the Future : Ken Research

by Ashish Kumar Market Researcher

UAE healthcare industry has witnessed high development over the past years and has attracted various international players to the market. The region is engaged in building of large healthcare infrastructure and medical cities to raise the supply and quality of healthcare in the country.

Healthcare segment is considered as priority segment by the Government of the UAE and the segment has experienced tremendous growth in the recent years. Presence of multinational diverse population, high prevalence of chronic diseases, aging population and growing medical tourism in the region is the major factor which has led to increased spending on healthcare in the country.

Mandate health insurance for Dubai inhabitant regulation by DHA in 2014 impacted the revenues of the hospitals in a positive manner. The insurance provided freedom to residents to opt for treatment and diagnostic procedures without any fear of cost of the procedure, benefiting the overall revenue of UAE hospitals market.

Abu Dhabi dominated the UAE hospitals market, by value in 2015. Presence of large number of hospitals in the region to cater region’s maximum population percentage in the country.

Big players operating in medical devices and pharmaceuticals market could plan to set up their manufacturing unit in the country. This would decrease the price of the goods as it would save the import duties and margins of the importers. Moreover, awareness about the company and customer loyalty would also increase leading to increase in demand for products

The overall cost of health insurance premiums is increasing at a rapid pace. It has been observed that the overall cost of premiums rose recording an increase of more than 12%. The cost of premiums is also outstripping the cost of healthcare itself, which is estimated to have risen by about 9% a year between 2008 and 2013.

Multi-specialty hospitals dominated the hospitals market with high revenue share in 2015, owing to their benefit to get consultation from doctors with diverse specialties. Additionally, the UAE hospitals market was in growing phase in these six years and therefore there were less number of hospitals in the region. Therefore, the Ministry of Health and private healthcare providers focused on multi-specialty hospitals to cater with all the disease conditions in the vicinity of hospitals.

Al Borg Medical Laboratories has a fleet of vehicles used for serving the need of customers from clinics, polyclinics, and hospitals. The vehicles are used for collection of sample from the patient’s respective place in accordance with international standards. These cars are monitored through GPS technology to guarantee accuracy and timely tracking of their shipment.

Rising population, elevating medical tourism sector and growing prevalence of lifestyle associated chronic diseases are leading to an increased strain on medical institutions to provide quality healthcare solutions to residents, expats and tourists in UAE. Telemedicine, which utilizes digital technologies to provide healthcare solutions from any location in the country proved out to be solution for this. Telemedicine would assist in relieving the shortage of quality healthcare practitioners by expanding the reach of UAE physicians and by providing access to general and specialist care in affordable cost.

UAE home healthcare market is growing at a rapid pace owing to the aging population, stable economic position of people to opt for expensive home healthcare service solutions, and rising investments by public and private players in home healthcare market. Germany based equity investment group such as TVM Capital had also invested into home healthcare market with the establishment of Manzil Healthcare in 2011.

Prescribed drugs hold the major share of the UAE pharmaceuticals market. High prevalence of chronic diseases in the region, which requires prescriptions and cannot be treated with the help of OTC drugs, is the major factor which has led to the dominance.

Various healthcare industry giants such as GE Healthcare, Philips Medical Systems, Siemens Healthcare and many others in partnerships is increasing the awareness and demand for advance medical equipments.

Neopharma in terms of revenue share was one of the leading companies in the market in 2015. The company’s partnership with Pfizer and Merck Serono has resulted in revenue generation for the company. Partnership with Pfizer helped the company in increasing its generic product portfolio and through Merck Serono, Neopharma generated revenue by manufacturing branded drugs for company to cater UAE market.

Rising awareness about the pre-pregnancy tests is the major factor which has contributed towards the revenue of the medical diagnostic laboratories in the UAE. Various market players have also provided packages in low cost and advanced pre-pregnancy test during these years, boosting the demand for pre-pregnancy tests.

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