New research says UAE healthcare revenue is set for annual growth of 7.5 percent over the over the next five years
Revenue generated from sales within the UAE healthcare sector is forecast to grow at a compound annual growth rate (CAGR) of 7.5% over the over the next five years, according to new research.
Sales are expected to reach AED39.4 billion ($10.7 billion) in 2021, said Dubai Chamber of Commerce and Industry amid growing momentum behind private spending, privatisation and preventative care within the market.
The findings, which are based on data from Euromonitor, shows that private sector healthcare sector spending is set to outpace public sector healthcare spending over the next five years, due to increasing market activity driven by compulsory health insurance, privatisation of hospitals, a growing occurrence of lifestyle diseases such as diabetes or obesity and better awareness of preventive care among UAE residents.
Healthcare expenditure will likely see significant growth in the UAE in 2021 as additional resources are required to reboot infrastructure for the return of elective procedures following temporary suspension of these services due to Covid-19-related restrictions.
Dubai Chamber’s report said the UAE government’s implementation of precautionary measures and smart technologies to reduce the spread of Covid-19 will also accelerate a rebound in medical tourism and attract international visitors to Dubai who are seeking treatment.
It said these efforts should result in a positive impact on medical tourism sales in the country which are projected to reach AED8.4 billion in 2021 and grow by a CAGR of 17.1% between 2021 and 2025.
According to the International Healthcare Research Centre (IHRC), Dubai ranked 6th out of 46 destinations in its Global Medical Tourism Index 2020-2021.
Although telehealth services were offered in the UAE prior to the Covid-19 outbreak, the pandemic has accelerated the growth of this market segment.
Today, telehealth and tele-radiology services are prevalent among leading healthcare providers across the UAE. Recent Google trends data also show that in online searches for telehealth services reached a peak point in April.
Several healthcare service providers in the UAE reacted quickly by providing telehealth services to patients during the lockdown. Lifestyle disorders, aging population and rising demand for personalised patient care as well as self-health management tools will continue to drive the telehealth market in the UAE, Dubai Chamber’s report noted.
Source: Arabian Business