ROLE OF PRIVATE SECTOR IN HOSPITAL SEGMENT:

There are more private hospitals than government-funded hospitals in Abu Dhabi and

Dubai. These facilities tend to be state-of-the-art, and their role in everyday medical care in

the UAE is growing. Most private medical centres offer a range of inpatient care (where

hospital admission is required for treatment) and outpatient (where treatment is

administered without requiring admission to hospital) clinics. Health care in Dubai and Abu

Dhabi is high quality, at least matching the standards of the USA, UK and other high-earning

Western countries. In addition, new hospitals and medical centres are being built in areas

that most need them.

The UAE healthcare sector appears to be following a path similar to that seen at a regional

level. From 2013 to 2017, the number of hospitals in the emirates has grown from 107 to

137. As of 2017, this comprises a total of approximately 13,200 hospital beds, representing a

CAGR of 4.8% in that period. Similar to the expenditure pattern across the GCC, there is a

predominance of government related expenditure. In 2018, the UAE government

contributed 66% of the country’s total healthcare spending of USD 15 billion. Going forward

the private sector is expected to witness stronger growth.

From 2018 to 2022, the private sector healthcare spend is set to grow at a CAGR of 9.5%

compared the government contribution of 4.4%. This is mainly supported by:

 Rising emergence and support for PPP in the UAE healthcare sector

 Increase in the aging population is anticipated to escalate demand for treatments

and hospital beds

 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

Considering the past growth of the healthcare sector in the UAE, one might argue that the

market has reached a certain stage of maturity. Changes in the sector over the coming

decade may be determined by several key themes affecting supply/demand dynamics;

regulatory and market demand driven factors are likely to shape the sector in the years to