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Abu Dhabi, UAE – Praxis Global Alliance has released a comprehensive report titled “Transforming UAE Healthcare Through Technology”, during the UAE Healthcare Leaders' Summit and Awards 2024 in Abu Dhabi on October 24th, 2024.
The report provides a comprehensive analysis of the UAE's healthcare landscape, highlighting transformative technology trends, market insights, and strategic imperatives poised to reshape the healthcare sector over the coming years. This expansion is driven by factors such as increased life expectancy, a high prevalence of non-communicable diseases (NCDs), and the UAE's burgeoning medical tourism industry.
Key findings and insights:
1. Market growth:
- The UAE healthcare ecosystem was valued at ~US$ 34B in FY2024 and is projected to grow at a CAGR of ~8%, reaching US$ 50B by FY2029
- Healthcare delivery constitutes the largest portion of the healthcare ecosystem, accounting for ~50%, while health insurance represents around 20%
- Private sector healthcare spending is expected to grow at a 9.5% CAGR, outpacing government spending (4.4%)
2. Healthcare costs and spending:
- Government healthcare spending stands at 3.4% of GDP, lower than the global average of 6.5%, with high insurance premiums (as % of GDP/capita) making the UAE one of the most expensive regions for health services.
- High treatment costs in the UAE for key procedures like heart bypass, knee replacement, and mental health therapy are significantly higher than in countries such as Poland, Malaysia, and India. This cost disparity is driving many UAE patients to seek medical care abroad, where similar treatments are available at much lower prices
3. Infrastructure shortages and heavy reliance on medical device imports:
- UAE has 2.0 hospital beds per 1,000 people and 2.9 doctors per 1,000 people, both below the averages of developed economies.
- Roughly 47% of hospital beds are privately owned, and Abu Dhabi and Dubai together account for over 70% of the nation’s healthcare facilities.
- Despite government efforts, the UAE imports ~40% of its medical devices, though reliance on imports is decreasing.
4. Chronic disease burden:
- Non-communicable diseases (NCDs) are the leading cause of death, responsible for ~80% of deaths in the UAE
- Prevalence rates of conditions like diabetes and cardiovascular disease grew at a CAGR of 9.9% and 8.1% respectively, between 2017-2021.
5. Medical tourism:
- The UAE is ranked among the top medical tourism destinations, with Dubai and Abu Dhabi attracting a large number of international patients, driven by high treatment quality and advanced medical infrastructure.
6. Aging population:
- Life expectancy in the UAE rose to 78 years in 2021, up by 5 years since 2010. The elderly population (60+ years) is projected to increase to 20% by 2050 from around 3% in 2020.
7. Diversified population
- Approximately 90% of the UAE's population are expatriates, leading to a mix of nationalities that introduces unique health challenges.
- There are 665 identified genetic conditions within the population, with 50% of these classified as rare and affecting fewer than 1 in 100,000 individuals.
- The UAE ranks 6th globally for genetic and partially genetic birth defects, highlighting the need for specialized healthcare solutions for diverse genetic profiles
8. Regional instability
- Regional geopolitical tensions risk supply chain disruptions and shortages in essential medical devices and supplies.
- Additionally, the UAE’s proximity to areas with endemic diseases heightens the threat of infectious disease outbreaks, adding further strain on healthcare infrastructure
9. Technological impact:
- The report highlights how technological innovations like AI, telemedicine, digital therapeutics, and genomics are crucial for addressing above mentioned key challenges in UAE healthcare ecosystem.
The report outlines strategic imperatives for technological disruption in the UAE healthcare sector, including enhancing workforce efficiency, optimizing healthcare claims, increasing cost efficiency, improving local supply chains, and catering to the demand for personalized care. Apart from this it also emphasizes the role of data utilization in delivering improved patient outcomes and driving long-term growth.
While unveiling the report, Aryaman Tandon, Managing Partner, Healthcare and Lifesciences said, “A unique opportunity exists for the UAE healthcare sector to embrace innovation, not only to enhance service delivery but also to achieve substantial cost efficiency and attract medical tourism,” he added. “Our report aims to serve as a roadmap for industry leaders and stakeholders to capitalize on these technologies and create a sustainable healthcare model for the UAE.”
The report is intended to guide policymakers, healthcare providers, and industry stakeholders toward a robust, tech-enabled healthcare ecosystem that prioritizes quality, accessibility, and sustainability.
Access the report here- praxisga.com/reports-and-publications/healthcare-and-lifesciences/transforming-uae-healthcare-through-technology
About Praxis:
Praxis Global Alliance is the next-gen management consulting firm revolutionizing how consulting projects are delivered. It delivers practical solutions to the toughest business problems by uniquely combining domain practitioner expertise, AI-led research approaches, and digital technologies. The company operates three business units, including Praxis Global Alliance Financial Investor Group (FIG), offering pre-deal support, commercial due diligence, post-acquisition value creation, Praxis Global Alliance Business Enablement and Transformation (BET) for practitioner-led business advisory and consulting, and PraxDigital™ delivering data engineering and analytics, AI, OpenData and visualization solutions to clients across verticals.
With a presence across 6 locations in India, UAE, and Saudi Arabia, Praxis Global Alliance has successfully served over 40 countries with a dedicated team of 200+ consultants and data scientists. Team Praxis works with C-suite to the front-line executives across business streams, helping them with end-to-end business enablement, organizational transformation, and revenue maximization support in an agile environment.
For more details, please visit: https://www.praxisga.com/