Data from Euromonitor shows rising traction behind private investment, privatisation and preventive treatment as key drivers projected to propel this business development, together with increasing trust in UAE healthcare systems and technology.
Sales revenues in the UAE healthcare sector are expected to rise at a compound annual growth rate (CAGR) of 7.5 per cent over the next five years to hit AED 39.4 billion ($10.7 billion) in 2021, according to a recent report by the Dubai Chamber of Commerce and Industry, based on data from Euromonitor. Healthcare spending is expected to see substantial increases in the UAE and worldwide in 2021, as additional resources are needed to reboot the system for the restoration of elective procedures following the partial cessation of these programmes due to Covid-19 constraints.
Due to growing business operation led by universal health insurance, the outsourcing of hospitals, the increasing prevalence of lifestyle disorders such as diabetes or obesity and greater understanding of preventive treatment among UAE people, private sector healthcare sector investment is set to outpace public sector healthcare spending over the next five years.
The introduction of precautionary steps and smart technology by the UAE government to minimise the spread of Covid-19 and the successful reopening of the country's economy and borders are other key developments that will drive a turnaround in medical tourism and attract treatment-seeking foreign tourists to Dubai, the study noted. Such efforts are anticipated to have a positive effect on the country's medical tourism revenues, which are estimated to hit AED 8.4 billion ($2.3 billion) in 2021 and rise by a CAGR of 17.1 percent between 2021 and 2025.
It is worth remembering that many UAE healthcare service providers responded rapidly by supplying patients with telehealth services during the lockout. The UAE telehealth industry will continue to be powered by lifestyle conditions, ageing demographics and growing demand for customised medical services as well as self-health monitoring resources. In addition, the method and quality of pre- and post-operative treatment can be enhanced by telehealth in medical tourism.
Dubai ranked sixth out of 46 destinations in the 2020-2021 Global Medical Tourism Ranking, according to the International Healthcare Research Center. Furthermore, it was ranked fifth in the quality of healthcare facilities and services, seventh in the environment of destinations, and 13th in the industry of medical tourism.