Due to the strong supply and demand, the healthcare industry is booming rapidly in the MENA region. This, in turn, has caught the attention of many private equity firms. The past few years have seen an increase in healthcare spending in the MENA region due to factors such as increased health awareness, high cost of health technology, and lifestyle changes. On the other hand, a rise in chronic and non-communicable diseases, rapid population growth, and a steady increase in the elderly population have placed a significant strain on the healthcare system in the MENA region.
Looking at the region’s economic diversification effort, it is evident that the thriving healthcare industry will generate new job opportunities while reducing outbound medical tourism. Furthermore, encouragement in research and higher medical education will be possible due to a robust healthcare system, thus allowing the MENA region to become a global hub for medical tourism.
The healthcare industry in the UAE is one of the fastest-growing, with the UAE’s healthcare spending estimated to reach USD 3.6 billion by 2030. This increased investment can be attributed to several factors such as a growing aging population, medical tourism, increasing prevalence of lifestyle diseases, and required insurances. Private and government sources, fast markets, and infrastructure expansions are among the most significant drivers for an increase in healthcare spending.
Market Drivers of Healthcare in the MENA Region
The healthcare system plays a crucial role in the overall growth of any country. The same is true for the MENA countries. Due to the regional governments’ constant focus on addressing difficulties, the MENA region has achieved huge advances in healthcare in a relatively short period.
Many factors contributed to the remarkable growth of healthcare in the MENA region. Some of these factors include:
- A rise in geriatric population.
- Increased usage of mandatory health insurance.
- Improved life expectancy and decreases newborn mortality.
- Increased income levels.
- Rise in the prevalence of lifestyle diseases like obesity and diabetes.
- Increase in public awareness of preventative care like screenings and health checks.
- High government spending.
- Establishing rules that expand insurance penetration.
Source: What is Fuelling the Healthcare Market Space in the MENA? – DUPHAT.
C Dupdave 