Thursday 23 March 2023

UAE healthcare spend growth to top $32bn in 2027

DUBAI, April 8, 2018

Investments in healthcare in the UAE will reach Dh118.1 billion ($32.2 billion) in 2027, growing at a CAGR of six per cent, said a top official, citing a recent industry report from Business Monitor International.

This will increase the health sector’s contribution to GDP from 4.7 per cent in 2017 to 5.1 per cent in 2027, added Dr Amin Al Amiri, Assistant Undersecretary for Public Health Policy and Licensing Sector, Ministry of Health and Prevention (MOHAP), inaugurating the Forbes International Health Forum, a strategic platform for regulators, senior leaders, experts and investors to discuss the future of the local health care sector.

He also highlighted that s that investments in health care in the UAE reached Dh62.2 billion ($16.9 billion) in 2017.

He stated that the spent on pharmaceutical products contributes with 16.8 per cent from the total healthcare spent, with a focus on new medicine and biological products. The pharmaceutical cost will be increase from Dh11.3 billion in 2018 to Dh20.6 billion in 2027.

D. Al Amiri said: “The market share of the private healthcare sector has increased significantly in the recent years and is expected to grow further under the strong guidance and support of the government sector, which provides the necessary facilities and infrastructure for the private sector to continue in its upward trajectory.”

The investment in private healthcare sector is expected to increase from Dh20.9 billion in 2018 to Dh30.003 billion in 2022.

He explained that the value of imported pharmaceutical products in 2017 reached Dh14.81 billion and is expected to grow to Dh19.46 billion in 2022. These products are imported from 72 countries, ten of which provide around 80 per cent of the imports, like Western European countries, the United States and Australia,

Meanwhile, he noted that the value of exported pharmaceutical products in 2017 totalled Dh3.62 billion, a figure that is expected to reach Dh4.74 billion in 2022, including export of locally manufactured products and re-export of imported medicines.

In parallel, the UAE is witnessing a steady increase in the number of pharmaceutical factories in the UAE, which is a strong indicator of the growth of its position in the field of pharmaceutical manufacturing and the government's keenness to support investments in the pharmaceutical sector with infrastructure, airports, free zones, logistical support for re-export to the Mena region and the creation of modern legislations and regulations that encourage investment in this sector.

He revealed the increasing number of scientific offices in the UAE--jumping from 30 in 2013 to 47 in 2017, with the number expecting to reach 75 by 2020. The number of pharmaceutical factories in 2014 was 14 and reached 18 in 2017, which is also predicted to increase to 36 in 2020.

Dr Al Amiri stated that the country's health sector is keen on meeting the increased demand for more healthcare services, especially as the population and life expectancy increase, which in turn also increases the presence of non-communicable diseases. – TradeArabia News Service

Tags: Forbes | UAE healthcare |

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