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UAE healthcare sector to be worth $19.5b in 2020

Dubai - In order to ease the growing pressure on the healthcare system, the GCC governments are injecting huge funds as well as encouraging private sector participation to build hospitals and clinics, upgrade the existing infrastructure and match the quality of services offered in developed countries.

The GCC healthcare market is projected to grow at a 12.1 per cent CAGR from an estimated $40.3 billion in 2015 to $71.3 billion in 2020, given an increase in population and rising cost of treatment, said Alpen Capital in its 'GCC Healthcare Industry' report.
"Development of the healthcare sector has taken centrestage in GCC countries, as they witness an era of demographic transition accompanied by rising prevalence of lifestyle-related diseases. In order to ease the growing pressure on the healthcare system, the GCC governments are injecting huge funds as well as encouraging private sector participation to build hospitals and clinics, upgrade the existing infrastructure and match the quality of services offered in developed countries.
"They are also investing heavily in technological advancements and rolling out mandatory health insurance schemes in all countries to further accelerate the growth of the healthcare sector," said Sameena Ahmad, managing director, Alpen Capital (ME) Limited.
The UAE accounts for 26 per cent of total healthcare spend by GCC governments. The UAE's per capita healthcare spend was $1,569 in 2013, the second highest in the GCC.
The UAE healthcare market is projected to be worth $19.5 billion in 2020, indicating an annual average growth of 12.7 per cent from 2015 and is marginally higher than the GCC growth average. The UAE outpatient and in-patient markets are projected to reach $12.1 billion and $7.5 billion respectively in 2020.
sandhya@khaleejtimes.com