Today's Edition
KHALED AL KHAWALDEH (ABU DHABI)
Alpen Capital, a UAE-based investment banking advisory firm, has released its latest GCC Healthcare Industry report, projecting the region's Current Healthcare Expenditure (CHE) to reach $159 billion by 2029.
While Saudi Arabia is slated for the highest rate of growth, the UAE stands out as a key market, expected to expand at an annualised average rate of 6.7% over the same period. The report indicates that the UAE and Saudi Arabia will together dominate GCC healthcare spending, commanding 82.6% of the region's CHE by 2029.
According to Alpen Capital's Managing Director Sameena Ahmad, the anticipated upswing is driven by macro-economic factors, the expansion of mandatory health insurance, and ongoing government-led diversification strategies that bolster healthcare infrastructure.
"The GCC healthcare industry is poised for strong growth driven by macro-economic factors, a growing and ageing population and the expansion of mandatory health insurance," Sameena Ahmad said.
"Government-led diversification strategies and national development plans of the GCC will continue to enhance the healthcare infrastructure and facilities, bringing them at par with international standards. Further growth of the healthcare industry will be fuelled by privatisation initiatives, substantial investments in digital transformation and rising demand for specialised healthcare services."
According to Aspen, healthcare spending in the UAE grew faster than the GCC average of 4.3% between 2018 and 2023, with this statistic highlighted as a key indicator of the strong growth potential of the country.
Moreover, panellists at the webinar launching the report underscored the UAE's growing appeal as a medical tourism hub and the corresponding rise in specialised facilities. They also highlighted the government's push for public-private partnerships to reduce the cost burden on public healthcare and improve overall quality of care. Meanwhile, significant investments in digital transformation - such as artificial intelligence-based diagnostics, telemedicine platforms, and precision medicine - were highlighted as major trends reshaping the UAE's healthcare landscape.
"The GCC healthcare industry is poised for significant growth, with the UAE at the forefront of innovation and development. The sector showcases remarkable resilience and adaptability in the face of a rapidly changing landscape," Dr. Jamil Ahmed, Founder & Managing Director of PRIME Health Holdings of the UAE, said.
Ongoing privatisation efforts, expansion of centres of excellence, and investments in long-term post-acute care are expected to reinforce the sector's resilience. The report forecasts that the region is likely to require 12,317 new hospital beds between 2024 and 2029. A figure that the team at Aspen believes will likely be achieved through increased private-sector investment and government-led strategy.
"Factors that will drive the future growth of the GCC's healthcare industry include strong government-backed initiatives, strategic public-private partnerships, and continued investments in healthcare infrastructure," Dr. Ahmed said.
