UAE Healthcare Market Report – 2020 : Ken Research
How is the Healthcare Market Positioned in UAE?
The healthcare market in the country has been immensely driven by the
rising High prevalence of diabetes and obesity, aging population in the
country, rising medical tourism, government support to build advanced
healthcare infrastructure, mandate health insurance policy in Abu Dhabi &
Dubai, and accelerating self-caring attitude among the people. The
pharmaceuticals segment has experienced a substantial growth in the last
five years majorly due to increased prevalence of chronic diseases among
the UAE residents and large number of medical tourists entering into the
UAE for their treatment purpose. There are several factors which have led
to this growth such as increased prevalence of obesity and diabetes,
increased expenditure by government on healthcare facilities towards its
strategy Medical tourism hub – Dubai, increased per capita income of
people in UAE, & implementation of mandate health insurance in Dubai
and Abu Dhabi.
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The medical tourism in the country has increased at a rapid pace during the
last five years, and is anticipated to experience high growth during the
forecast period. The government of the UAE is working hard to achieve its
target of ~ medical tourists in Dubai in 2020 as a part of 'Dubai, a Global
Destination for Medical Tourism' project launched by His Highness Shaikh
Hamdan bin Mohammad bin Rashid Al Maktoum, Crown Prince of Dubai
and Chairman of the Executive Council of Dubai. The government strategy
is expected to achieve laurels by 2020 as the number of medical tourists
in the nation is increasing every year. Year 2014 and 2015 welcomed ~
and ~tourists in UAE respectively which is further expected to increase to
~ in 2016 and ~ in 2020, generating revenue of approximately USD ~
million and USD ~ million respectively.
What factors have Led to the High Imports of Medical Devices in
the UAE?
UAE is an import driven market in context to medical devices. The imports of
medical devices and accounted for a lion share of ~% from the total
revenue market in 2015 in both the segments. Expanding healthcare
infrastructure in the country is the major factor which is driving medical
devices market in the UAE . On the basis of applications, medical devices
market is differentiated into diagnostic imaging products, medical
consumables, dental products, assistive devices, orthopedic and implants,
and others. Diagnostic imaging products dominated the market with
revenue share of ~% in 2015 owing to the rising number of diagnostic
centers and increased demand for diagnostic procedures to cater rising
incident rate of chronic diseases in the country. Household demand for
medical devices is on rise in the UAE. The segment experienced the
growth of ~% over the span of six years. Rising availability of medical
devices to undergo procedures at home, economic affordability of homeuse devices, and pressure of work prohibiting individuals to visit
healthcare centers and hospital for procedures are the major factors
which have escalated the household demand.
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Institutional demand however, is dominating the market with revenue share
of ~% in 2015. Large number of procedures, high demand for
technologically advanced equipment with rapidly developing healthcare
infrastructure in the country and the economic stability of the government
to purchase innovative and expensive medical devices has helped the
segment in gaining dominance in market, in terms of revenue in UAE. Abu
Dhabi dominated the UAE Medical Devices market in the year 2015, with
the revenue share of ~%. Presence of large number of hospitals in the
region to cater high population is the major factor which has led to the
dominance of the region with respect to sales of medical devices. Dubai
incarcerated second position with the revenue share of ~% in 2015.
Rising number of healthcare settings owing to the elevating medical
tourism in the emirate has driven the market for Dubai.
What is the role of Increased Investment in Healthcare Sector in
UAE Medical Devices Market?
Rising investment on healthcare infrastructure is the major trend which has
resulted in increased demand for medical devices in the UAE. In 2015, the
Ministry of Health, UAE gave licenses to ~ health facilities including three
hospitals, four day surgery centers, ~ polyclinics, ~ pharmacies, four
diagnostic centers, and ~ other healthcare facilities. Additionally, many
healthcare providers are opening new avenues in the country. For
instance, Vital Poly Clinic is opening new centers of skin clinic for
providing solutions for different skin diseases ranging from acne to HIV
related skin issues. Similarly, Medstar Day Surgery Center is in plans to
invest around USD ~ million for setting day surgery center in the UAE.
Dubai Health Authority had also announced that the government agency
would be establishing three new hospitals and~ health centers by 2025 in
Dubai. All these newly established centers would demand for medical
devices. Gulf Drug LLC, Abu Dhabi International Medical Services, Modern
Pharmaceutical Company, and Atlas Medical are major importers in the
market who are working as exclusive partners for medical devices
manufacturers. Gulf Drug LLC dominated the market with revenue share
of ~% in 2015.
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Application of the device, cost of the device, choice of the manufacturing
company, and clinical trial evidence are the major aspects which regulate
the purchase decision of the customer of medical devices. Cost is most
essential factor which needs to be accounted to determine before buying
any medical devices, which includes careful analysis of the equipment
with respect to technology, stability, consumables cost, cost per
treatment, customization options, availability of spare parts and others.
This also includes contemplation of device specification such as SNR, main
magnetic field, no. of independent RF receiver, and others in case of MRI
to have an idea about the effectiveness, efficiency and suitability of the
product. Possible side effects of the system should also be considered
while cost analysis to determine an effective medical device. The medical
devices market in the UAE is expected to grow at a healthy pace owing in
surge in the number of healthcare providers in the country. Launch of
various innovative medical devices such as pain-less glucose monitoring
by Atlas medical and migraine treatment device by Lunatus Marketing and
Consulting in 2016, would impact the overall sales of the medical devices
in positive manner
How Increased Chronic Diseases Prevalence Is Affecting Uae
Pharmaceuticals Market?
The rising prevalence of chronic diseases among the fast growing population
of UAE is the major factor which is responsible for the growth of the
pharmaceutical products market in UAE at rapid rate. The total
pharmaceuticals market in UAE has exhibited the growth rate of ~% from
2010 to 2015. Economic stability to undergo expensive treatment options
has led to the increased sales of patented drugs in the market. Patented
drugs dominated the UAE pharmaceuticals market with ~% of the
revenue share in year 2015. Generic Drugs on other hand experienced
rapid growth of ~% in previous years. Rising number of local
manufacturers producing high quantity of generic drugs is one major
factor which has led to increase in the use of generic drugs. Government
support is also one major factor which has led to the increased usage of
generic drugs. Prescribed drugs hold the major share of the UAE
pharmaceuticals market with revenue share of ~% in 2015. 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.
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In terms of therapeutic area, the market is classified into diabetes,
cardiovascular, anti- infectives, respiratory, supplements and nutritional
products, and others. Diabetes segment dominated the pharmaceuticals
market with revenue share of ~% in 2015. High prevalence rate of
diabetes in the country is the major factor which has led to the
dominance of the segment in the UAE. More than ~ million people in the
UAE were suffering from diabetes in 2015. Supplements and nutritional
products experienced the fastest growth over the span of six years, 2010
– 2015 and experienced CAGR of ~% during the period. Growing trend of
well-being and healthcare awareness is the major factor which has led to
the growth.
How the Slashing Drug Prices in the UAE has Impacted
Pharmaceutical Market?
Ministry of Health regulates the pharmaceutical industry in the UAE. The
pharmaceutical profession is defined as the preparation, composition,
separation, manufacturing, packaging, selling, or distribution of any
medicine or pharmaceutical preparation for the prevention of illness in
human beings or animals.
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A medical store is an establishment within the UAE the business purpose of
which is the import, storage and wholesale distribution of medicine. The
specific laws concerned with mandate conditions for pharmaceutical
business, laws for importing, obtain a medical warehouse license,
submission of necessary documents, and final registration steps are
highlighted by the Ministry of Health. The steps to open the pharmacy are
also regulated by the Ministry of Health which majorly requires a
preliminary approval for the premises and other essential documents to
prove qualification of the owner of pharmacy. The UAE grants patent for
inventions that are novel, contains an inventive step and has industrial
application. The UAE is a member of the Patent Co-Operation Treaty and
the Paris Convention. It takes three to four years to receive a
pharmaceutical patent in the UAE. There are fixed patent charges and
official fees, and annuities for twenty years which patent holder needs to
pay for holding the patent for ~ years. Slashing drug prices by UAE
government is majorly driving the pharmaceutical market in UAE. UAE
Ministry of Health is working continuously to decrease the price of
pharmaceutical drugs from previous five years (since 2011).
This has helped almost 80% of the population of the UAE who spends out of
their pocket at private pharmacies as compared to ~% who have health
insurance cover, as observed in 2015. Majority of the price reduction are
observed on drugs specific for infections, musculoskeletal and joint
diseases, gastrointestinal, respiratory diseases, diabetes and
hypertension. After six initiatives by the government on price reduction of
drugs, UAE has lowest drug prices in entire GCC region. The slashing
prices of the drugs impacted the revenue of the pharmaceutical
companies in a negative manner and the market growth declined from
~% in 2012 to ~% and ~% in 2013 and 2014 respectively. Pfizer,
GlaxoSmithKline, Sanofi, and AstraZeneca are dominated the market with
combined share of ~% in 2015.
 How Health Insurance Has Impacted the Hospitals Market?
Hospitals market in UAE has experienced rapid increase in number of
hospitals, number of inpatients and outpatients from 2010 to 2015.
Number of hospitals recorded the growth rate of ~, however, number of
inpatients and outpatients increased by ~% and ~% respectively in 2015.
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Rise in number of patients has resulted in revenue generation at a high
pace, exhibiting a growth rate of ~%. 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. Rising investments by the international players led to the
increase in number of hospitals in the country and increased medical
tourism in the country has impacted the increase in number of inpatients
and outpatients in the UAE over the years. World-class facilities in these
hospitals which are attracting patients, who preferred overseas medical
services, high inpatient and outpatient cost and high availability of
advanced diagnostic and treatment options in these hospitals has led to
the dominance of the private hospitals in the UAE market, in terms of
revenue generation.
Additionally, rising number of outpatients in private hospitals acted as an
additional factor in growth of private hospitals revenue. The major
revenue contributor among private and public hospitals was multispecialty
hospitals with market share of ~%. However, the establishment of singlespecialty hospitals registered robust business from 2010 to 2015,
increasing the revenue at a rate of ~% in the respective years. Rising
number of diseases among children in the UAE has led to the rise in
number of child and pediatric care hospitals in the UAE, both by the MOH
and private healthcare providers.
 What ROLE JCI Accrediation Plays in UAE Hospitals Market?
Outpatient revenue dominated the hospitals market with revenue share of
~% in 2015 owing to the increased number of outpatient visits owing to
the high prevalence of infectious leases. Food poisoning also resulted in
more number of outpatient visits. Inpatient revenue followed outpatient
revenue the hospitals market, by revenue majorly due to high income
generation from and long stay at the hospitals.
Couples can spend an average of AED ~ (USD ~) to AED ~ (USD ~) on a
normal delivery of a child in the UAE, depending upon the type of doctors,
room to stay, and services provided. Large number of hospital projects is
under pipelines which are expected to fuel the growth in the future. The
major among many include Thumbay Builders Project, Burjeel Medical
City, Dubai Health Authority, Fakeeh Academic Medical Center, Sheikh
Khalifa Medical City (SKMC), and Medcare Hospitals. Burjeel Medical City
is estimated as the high investment project with estimated cost of USD ~
Billion and Area of ~ sq. ft. SKMC is other major project with area of ~
sq. ft. and is expected to complete by ~ In UAE, for the growth of
healthcare sector, especially hospitals, JCI accreditation is a goal set by
HAAD for all hospital providers in the Emirates. HAAD Health Regulations
have been drafted in collaboration with international healthcare experts
including JCI to help drive compliance and improve quality and costeffectiveness across the system The Joint Commission International (JCI)
was appointed by DHCC to accredit hospitals operating within DHCC.
This selection demonstrates the commitment by DHCC to provide safe and
high-quality care. The initial investment of the hospital includes the
procurement of the land, construction and interior of the hospitals,
procurement of medical equipment, consumables and wound care
essentials, and other expenses It has been observed that in the UAE the
construction of the hospital with all essential facilities including cost
around ~ million per bed.
 Which Factors are Fueling the Demand for Independent Diagnostic
Laboratories?
Independent diagnostic laboratories is most recently established market in
the UAE with revenue of USD ~ million and growth rate of ~% in span of
six years (2010 – 2015). The rising self care attitude among people
coupled with increasing prevalence of chronic diseases is the major factor
which has led to growth of independent diagnostic laboratories. The
number of independent diagnostic laboratories has also observed rapid
growth with number growing from ~ in 2010 to ~ in 2015
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Organized players are ruling the market with the market share of ~% in
2015 and their revenues are further expected to increase at a rate of ~%
from 2016 to 2020. Organized players including Proficiency Healthcare
Diagnostics, National Radiology Laboratory, Al Borg Laboratories, and
Medsol Laboratories captured major share of the market with revenue
share of approximately ~% with Proficiency Healthcare Diagnostics
leading the market with ~% share in 2015. Multiple branches in the
country which provides comprehensive range of services is the major
factor which has led to the growth of the laboratories. In terms of revenue
with share of ~% in 2015, pathology tests captured major share of
independent diagnostic laboratories market. Less prices of kits and
medical devices used for performing pathology tests and high demand for
pathology tests among diabetic people in the UAE is the major factor
which has resulted in high revenue from pathology tests. By 2020, the
UAE independent laboratories segment would witness high growth owing
to the government’s strategy of consolidation in all the Emirates. SEHA
along with SKMC has also made a consolidation model, which is expected
to be regulated in the coming years.
What has Been the Scenario of Pharmacy Retail Market in the
UAE?
Pharmacy retail market is highly competitive in nature with large number of
organized and unorganized players in the market. The pharmacies in the
UAE are either private in nature or administered by MOH regulatory
bodies majorly SEHA. In highly fragmented pharmaceutical dispensing
market of the UAE, innovative and creative strategies by the pharmacy
retail chains are majorly helping them to sustain in the market. UAE has
~ number of retail pharmacies in 2015 generating USD ~ million of the
revenue. Dubai had the highest number of pharmacies followed by Abu
Dubai. Dubai accounted for ~ % of total retail pharmacies while Abu
Dhabi ~% of the pharmacies. The rising medical tourism in these
emirates coupled with increased use of expensive and advance
medications for treatment of chronic diseases has led to the
establishment of increased number of retail pharmacies. Life Pharmacy,
Bin Sina Pharmacy, Aster Pharmacy, and Super Care Pharmacy are the
major organized retail pharmacies operating in the UAE. Aster pharmacy
has maximum number of pharmacies with ~ number of stores by June,
2016.
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Which Factors are Driving the Clinics/Polyclinics Market in the
UAE?
Clinics/polyclinics market is highly competitive in nature with large number
of unorganized players operating in the market with specific
specialization. The clinics in the UAE are either private or public in nature.
Public clinics and polyclinics are regulated either by SEHA or MOH. In
highly fragmented clinics and polyclinics market of UAE, the high
prevalence of dental disorders, low consultation fees of the clinics in
comparison to hospitals, and escalating demand for IVF are the major
factors which are driving the clinics/polyclinics market in the country.
Clinics dominated the overall clinics/polyclinics market with the revenue
share of ~% in 2015. Low consultation fee of the clinics in comparison to
hospitals and polyclinics attracts large number of patients to the clinics,
generating revenue for the segment. Polyclinic on the other hand is the
growing segment and has exhibited the growth of ~% from 2010 to 2015.
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What Is The Status Of Future Healthcare –Telemedicine In Uae?
Emergence of Abu Dhabi Telemedicine Center in 2013 marked the initiation
of core telemedicine services in the UAE. The center has experienced a
high growth during this period with revenue of USD ~ million in 2013 and
USD ~ million in 2015, and the market is expected to grow at a CAGR of
~% during the forecast period. Unavailability of appropriate healthcare
facilities in rural regions of the country are expected to fuel the
telemedicine market during the forecast period. Many UAE diagnostic
centers have invested into teleradiology in the recent years. The market
for teleradiology is witnessed to increase at a high pace of ~% per year;
however target radiology patient is only increasing at a rate of ~%. By
2020, Abu Dhabi Telemedicine Center is expected to attract more number
of patients for tele-health consultation and teleradiology services would
gain high importance majorly due to reducing outbound medical tourism.
The rich patients who will chose UAE for treatment other than overseas,
would use teleradiology services to transfer their report to have a second
opinion on their treatment, hence generating revenue for the market.
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How the Home Healthcare Growth would Impact UAE Healthcare?
Aging population and high prevalence of diabetes leading to kidney failures
and subsequently increase in demand for home peritoneal dialysis are the
major factors which are expected to contribute in the growth of the
market. Home healthcare market in UAE was valued at USD ~ million in
2010, which exhibited a rapid growth of ~% from 2010 to 2015, reaching
at a value of USD ~ million in 2015. Home healthcare market is newly
established market with large number of unorganized players operating in
the market. Americare Home Health Services, Manzil Healthcare Services,
and Emirati Canadian Home Healthcare Services are the major among
many. These home healthcare centers provide comprehensive services
which majorly include physiotherapy, doctor at home, post-hospital
discharge care, diabetes management, baby at home, pediatric care,
post-operative care, senior care, wound care, patient therapy compliance,
and international patient care.
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Source:
https://www.kenresearch.com/healthcare/generalhealthcare/uae-healthcare-market-report/3750591.html
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Ken Research
Ankur Gupta, Head Marketing & Communications
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