United Arab Emirates Healthcare | UAE healthcare Industry

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UAE Healthcare Market Report 2020 Ken Research
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• 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.

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• 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
  home-use 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.

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• 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

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• 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).

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• 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.

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• 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
  single-specialty 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.

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• 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 cost-effectiveness across the system The
  Joint Commission International (JCI) was
  appointed by DHCC to accredit hospitals operating
  within DHCC.

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• 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 governments 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.

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• 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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