UAE healthcare receipts set to hit $10.7bn in 2021 amid privatisation push

Sales revenue in the UAE healthcare sector is expected to grow at a compound annual growth rate (CAGR) of 7.5 percent over the next five years, according to new research.

The Dubai Chamber of Commerce and Industry said sales are expected to reach 39.4 billion dirhams ($ 10.7 billion) in 2021 amid growing momentum behind private spending, privatization and preventive care. in the market.

The results, which are based on data from Euromonitor, show that private sector health spending will exceed public sector health spending in the next five years, due to increased market activity driven by mandatory health insurance, privatization of hospitals and an increasing incidence. For lifestyle-related diseases such as diabetes or obesity and to raise awareness of preventive care among the UAE population.

Healthcare spending is likely to grow significantly in the UAE in 2021, as additional resources are required to restart infrastructure and reinstate elective measures following the temporary suspension of these services due to Covid-19-related restrictions.

The Dubai Chamber report said that the UAE government's implementation of precautionary measures and smart technologies to limit the spread of Covid-19 will also accelerate the recovery of medical tourism and attract international visitors to Dubai seeking treatment.

He said these efforts should have a positive impact on medical tourism sales in the country, which is expected to reach Dh8.4 billion in 2021 and grow at a compound annual growth rate of 17.1 percent between 2021 and 2025. .

According to the International Center for Health Research (IHRC), Dubai ranks sixth out of 46 destinations in the Global Medical Tourism Index 2020-2021.

Despite the introduction of telehealth services in the United Arab Emirates prior to the Covid-19 virus outbreak, the pandemic has accelerated the growth of this market segment.

At present, telehealth and telehealth services are distributed among the main health care providers in the UAE. Recent data from Google Trends also shows that internet searches for remote healthcare services peaked in April.

Many healthcare providers in the United Arab Emirates have reacted quickly by providing telehealth services to patients during the lockdown. The Dubai Chamber report indicated that lifestyle alterations, an aging population, and the increasing demand for personalized patient care, as well as self-health management tools, will continue to drive the telehealth market in the UAE.