Healthcare

As the premise behind the UAE Vision 2021 is to create a successful knowledge-based economy, and there is no success without good health, part of the Vision aims to create a world-class healthcare system. Ongoing reforms currently being undertaken in the healthcare system are also in line with various emirate-level plans to develop improve healthcare.

A country’s progress and development are defined by the sound mind, body, physical and mental safety and well-being of its citizens and residents. As they say, health be it for an individual or a country is its true wealth. Healthy human beings are the cornerstone of any nation’s development. They are the wheels that drive UAE’s progress and growth.

HE Abdul Rahman Bin Mohammed Al Owais, Minister of Health & Prevention

145 hospitals

established in the UAE as of 2018

100% health insurance coverage

UAE residents are required by law to be covered by health insurance, meaning all residents are customers of the healthcare sector

USD 10 Billion

In-kind aid donated by the UAE to the World Health Organization as of July 2021

USD 1.4 billion

UAE budget allocation for healthcare in 2021

The UAE is determined to solve healthcare issues through investment in human capital, as well as technological development. As such, there is deep interest in the possibilities for training and technology transfers to the UAE.

Supporting its technological ambitions, the UAE healthcare sector has witnessed a continuous inflow of medical tourists, with visitors seeking treatments ranging from major surgery to rehabilitation and cosmetic corrections. In 2020-2021, the Medical Tourism Index indicated that Dubai and Abu Dhabi were respectively ranked as the sixth and ninth best global destinations for medical tourism. Privatization of hospitals and mandatory medical insurance, especially in Dubai and Abu Dhabi, will continue to encourage spending and contribute to a more integrated health system.

The UAE already has an impressive track record with healthcare investment, having attracted the world-class Cleveland Clinic Abu Dhabi, and education programs by NYU Abu Dhabi (NYUAD) and John’s Hopkins Bloomberg School of Public Health.

What You Need to Know

  • As of 2018, the UAE had 145 hospitals, 4,659 clinics and health centers, with a cumulative bed capacity of 13,811. 
  • The UAE has mandatory health insurance, and as such, 100 percent of UAE residents are covered by some form of health insurance. Therefore, all 10 million  residents are customers of the healthcare sector.
  • The UAE's population is expected to grow to at a 2.47 percent CAGR until 2024 to reach 12.5 million people. This will create a commensurate demand for healthcare services.
  • There has been rising support for Public-Private Partnerships (PPP) in healthcare. Generally, these PPPs operate in a way such that the public sector provides the facilities and the private sector provides the management and skills.
  • There has been an increase in the UAE’s demand for aged care facilities. There are few existing long-term care facilities in the UAE.
  • Privatization of hospitals and mandatory medical insurance, especially in Dubai and Abu Dhabi, will continue to encourage spending and contribute to a more integrated health system.
  • In the 2020-2021 Medical Tourism Index, Dubai and Abu Dhabi were respectively ranked as the sixth and ninth best global destinations for medical tourism.
  • The UAE's population shifts, high prevalence of chronic diseases, wealth, and ambitions to become a regional medical tourism hub are all driving investment in the country’s healthcare sector.
  • The UAE healthcare sector attracted foreign direct investments amounting to USD 784 million between August 2016 and August 2021.
  • In October 2017, the UAE government appointed a Minister for Artificial Intelligence (AI). The ‘UAE Strategy for AI’ aims to integrate AI into medical services to minimize chronic and life-threatening diseases in the country. AI and healthcare technology could present an opportunity for foreign direct investment and technology transfers.
  • The primary healthcare regulatory authorities in the UAE are the Ministry of Health and Prevention (MoHAP), Department of Health Abu Dhabi (SEHA), Dubai Health Authority (DHA), and Sharjah Healthcare Authority (SHA).
  • For the Northern Emirates (Ras Al Khaimah, Umm Al Quawain, Fujairah, Ajman), MoHAP is the main regulatory authority.
  • The strong regulatory environment surrounding healthcare in the UAE serves to protect consumers’ privacy. As of May 2019, a new regulation pertaining to healthcare privacy in the UAE was passed. This legislation aims to regulate the collection, processing, and transfer of electronic health data originating in the UAE.
  • In October 2017, MoHAP announced that all healthcare facilities in the UAE would have international accreditation from medical bodies in the US, Canada or Australia by the end of 2021. As of 2019, nearly 70 percent of the more than 4,000 health facilities, including hospitals, ambulatory services, clinics, polyclinics, and primary care centers, have international accreditation.
  • Substantial opportunities exist for the development of educational and research facilities, especially in the Northern Emirates. According to representatives of the Ras Al Khaimah Primary Health Care Department, many medical facilities require updated medical tools and equipment, as well as an improvement of the state of hospital and clinic infrastructure.
  • The UAE's healthcare sector has been heavily influenced by the skills, technologies, and leading providers in the United States. Foreign healthcare providers could find management opportunities in UAE hospitals, in a similar structure to Johns Hopkins Medicine International. 
  • Foreign healthcare entities could include UAE hospitals in their global healthcare networks, following the examples of Houston Methodist Global Health Care Services and the Mayo Clinic.
  • DHA is working on a program to develop and implement Certificate of Needs [CoN] guidelines, which will support and guide investments to deliver quality services. DHA has committed to making investors aware of where the opportunities are, and will provide incentives to areas where investment needs exist and where CoN requirements are met.
  • Ministry of Health and Prevention (MoHAP)
  • Dubai Health Authority (DHA)
  • Department of Health Abu Dhabi (SEHA)
  • Sharjah Healthcare Authority (SHA)

The rapid development of the [UAE’s] healthcare sector over the last decade, driven by government and private funding, has certainly put regional healthcare provision on the global map. Now, with the sector gradually maturing, it is key for existing healthcare players and new entrants to align their business model to today’s regulatory changes and shifting market conditions.

Richard Stolz, Associate Director, KPMG in the UAE

⇑