Abu Dhabi's Healthcare Market
Healthcare in Abu Dhabi faces growing demand for services arising from an expanding population that has a deteriorating health status (1)
Abu Dhabi is the capital of the United Arab Emirates and one of the most successful cities in the world, ranked among the top five exporters of crude oil and among the top 25 exporters of natural gas.
Abu Dhabi is currently enjoying a huge investment programme with an estimated US$500 billion scheduled to be invested within the next four years.
With a rising population suffering from chronic diseases such as diabetes, cardiovascular and respiratory diseases, governments in the Middle East see the development of healthcare as a priority and the key to sustainable economic growth. The United Arab Emirates for instance is constantly increasing its spending on the construction of new healthcare facilities and the improvement of existing ones.
Indeed, the region still suffers from important gaps in all areas of healthcare, from human resources through to hospital equipment and facilities. However, with affluent patients across the world willing to travel to receive the best medical treatments, Abu Dhabi sees the potential of the global healthcare market and intends to compete successfully by creating world-class healthcare facilities in the Emirate. The growth of the medical sector depends on the investment in technology that Abu Dhabi is in the position to make thanks to its strong economic base.
According to HAAD (2), Abu Dhabi population is expected to double by 2030, requiring up to 20 new medium-to-large hospitals and 23 clinics and therefore creating immense business opportunities for any healthcare manufacturer, dealer or distributor. Plus, the Emirate presents an important capacity gap in terms of hospital equipment such as critical care beds. Thus, the optimal occupancy of beds in intensive and critical care wards is 75%, the Abu Dhabi facilities reported nearly 100% of occupancy (3).
Recruitment companies should also benefit from the development of the healthcare market in the region as it is estimated that 3100 additional doctors 5800 nurses would be required in Abu Dhabi by 2030 to cater the needs of its growing population (4).
Pharmaceutical sector on the rise
According to a recent report from Reuters (5), the United Arab Emirates' pharmaceutical sector experiences a year-on-year growth of 11.3%. By 2014, the total drug expenditure should reach AED 8.3 billion (US$ 2.2 billion), which amounts to a compound annual growth rate of 9.86%.
The United Arab Emirates, with the second highest diabetes rate in the world and cardio-vascular diseases being one of the highest causes of death, cannot avoid an increase in drug usage.
A study from the Dubai Chamber of Commerce (6) highlights the fact that the local pharmaceutical sector is quite small and therefore relies mostly on imports – 64% from Europe – creating new business opportunities for any pharmaceutical company.
(1)(2)(4)HAAD report 2010
(5) United Arab Emirates Pharmaceuticals and Healthcare Report Q1 2011, Reuters
(3) The National, 2 June 2011
(6) UAE pharmaceutical industry set to benefit from lifestyle changes, 23 August 2011, Dubai Chamber of Commerce