Innovation i tech High

WHITE PAPER ON UAE's STATE OF MANUFACTURING
Healthcare & Pharmaceuticals
The healthcare sector
has proven to be one
of the most resilient
sectors in the UAE. The
country has witnessed a
dramatic expansion of its
healthcare industry over the
past four decades. When
the UAE was founded in
1971, there were only seven
hospitals and 12 health
centres. Today, the country
has over 70 public and
private hospitals and 150
centres and primary care
clinics.
Healthcare is one of the
most rapidly growing sectors
globally, with expenditure
totalling $7,682 million in
2015. According to estimates
by the EIU, health spending
will accelerate in most
countries, rising to an average
of 5.2% a year in 2014- 18,
equalling $9.3 trillion. This
increase will be driven by the
needs of aging and growing
populations, the prevalence
of chronic diseases,
emerging market expansion,
infrastructure improvements,
and advances in treatment
and technology. The most
rapid growth in healthcare
spending is expected to
be in the Middle East and
Africa. The region could see
an annual average increase
of around 9% over 2014-18,
due in part to population
growth and efforts to expand
access to care.
Following this global trend,
the UAE healthcare market
will grow by leaps and
bounds in the coming years.
The UAE’s pharmaceutical
market was expected to
have sales of around AED
9.6 billion by 2016. These
sales are estimated to
grow at a CAGR of around
8% and by 2020, the UAE
pharmaceutical market is
estimated to be worth around
AED 13 billion.
Most of the healthcare
expenditure in the UAE was
government expenditure
that was estimated to be
around AED 42 billion,
while private healthcare
expenditure was estimated
to be around AED 18 billion.
Another major trend is the
growth of local production
of pharmaceuticals which is
estimated to grow at a CAGR
of around 10% from 2015 to
2018.
Population growth is one
key driver of this expansion.
High birth rates and longer
life expectancies among
Emiratis are increasing the
UAE’s indigenous population.
Meanwhile, an increasing
number of expatriates are
moving to the country to
pursue work opportunities
As such, a 2015 U.N. report
predicted that the UAE’s
indigenous and expatriate
population would grow from
9.16 million to 10.98 million
by 2030. Demographic shifts
are also at work, as the UAE’s
population slowly begins
to age. The percentage of
Emiratis above the age of 60
is set to double from around
5.2% at present to 11%
by 2032. This will increase
demand for healthcare in
general and geriatric care in
particular.
There are several other
reasons for the growth of
the UAE healthcare market.
These include moves toward
INNOVATIONANDTECH
January | 2018
15