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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.
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.
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.
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.
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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