Based on an extensive study by Alpen Capital Group, the GCC healthcare market is projected to grow at an annual rate of 11% to USD43.9 billion by 2015 from an estimated USD25.6 billion in 2010. Saudi Arabia is projected to be the fastest growing market along with the UAE. In addition –
- UAE’s health sector has consolidated its position as one of the world’s top 20 in terms of spending per capita. The average spending of $1,200 per person per year is commendably high by international standards. This is expected to grow exponentially in the coming years.
- The country’s healthcare sector has grown at double digit rate to keep pace with incessantly rising demand for quality treatment and diagnostic facilities. Healthcare spending in the UAE is believed to have grown at a CAGR of more than 13% during 2007-2012;
- The GCC healthcare 2025 Report by McKinsey & Co. estimates the demand for hospital beds across the country to increase by 160% by 2025. The McKinsey & Co. report on healthcare spending predicts surging costs in the sector, with total UAE healthcare costs expected to increase fivefold from USD12 billion now to USD 60 billion from by 2025.
- Abu Dhabi’s Executive Council announced the approval of 14 new health care facilities to be constructed, including six new hospitals in the Emirate. Dubai’s government is also aiming for world-class standards for its healthcare sector by positioning itself as a future hub for medical tourism.
- More than Dh10 billion was spent on health care in Dubai in 2012, and half of it was spent in the private health-care sector. Dh8.5 billion was spent on services in Dubai and Dh1.5 billion outside of the emirate. Spending is expected to rise in the coming years and efforts are being made to keep patients at home and deliver high quality, cost effective treatments.
- Driven by various factors such as rapidly increasing population, rising prevalence of lifestyle diseases, such as obesity, diabetes and hypertension, and the lack of internationally reputed healthcare infrastructure, the country has been witnessing tremendous increase in demand for healthcare services, resulting into increased healthcare spending; and
- Growth in the future will be driven by the favorable regulatory environment, increasing private sector participation and the introduction of compulsory medical insurance schemes in Dubai and Northern Emirates, economic upswing particularly in Dubai, the development of phase two of e Dubai Healthcare City (DHCC) and the completion of strategic healthcare projects such as Al Jalila Hospital and the Rashid Hospital Expansion along with dedicated facilities for Oncology and the impact of Expo 2020 in Dubai.
Source – Health Sector Market Reports, Press Reports, HBB Research