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Healthcare IT Spending in UAE is showing strong growth

By Tina Hashim, Senior Market Research Associate, HIMSS Analytics Asia Pacific & Middle East

In line with a rapid population growth, increasing life expectancy and growing affluence, the UAE's healthcare technology sector is set to experience healthy growth in the next four years.

Research carried out by HIMSS Analytics, the healthcare division of HIMSS, shows that the rising prevalence of lifestyle diseases coupled with Dubai's ambitious plans to turn the emirate into a medical tourism hub provide great market potential for first time investments throughout all software application markets.

According to the UAE Ministry of Health, government spending on healthcare will reach Dh40 billion by 2015. In 2011 alone, healthcare spending in the UAE - distributed across the budgets of the Ministry of Health, the Health Authority - Abu Dhabi and the Dubai Health Authority - amounted to Dh36 billion.

Major public healthcare initiatives within the UAE includes plan for 35 healthcare projects spread across the Northern Emirates and a 12-year masterplan by the Dubai Health Authority to ensure that all hospitals will be within a 12 kilometre radius of all catchment areas.

The private healthcare sector in the UAE also continue to show promising signs of rapid growth. Mubadala Healthcare, a healthcare investment vehicle owned by the Government of Abu Dhabi, recently opened Healthpoint, a 74-bed, multi-speciality hospital managed by German healthcare operator, Asklepios. Upcoming Mubadala Healthcare health ventures include the much anticipated Cleveland Clinic Abu Dhabi, a multi-speciality hospital built in partnership with top US-based Cleveland Clinic, which is expected to be operational in the second quarter of 2014.

Software companies are expected to greatly benefit from the rapid expansion of the healthcare sector in the UAE. Based on HIMSS Analytics forecast, cardiology applications as well as applications such as case mix management and telemedicine show the greatest potential for growth within the Dubai and Abu Dhabi Emirates, with CAGR expected to exceed 10 percent between 2013 and 2017. In fact, our research also projects high potential for first-time installations across all software applications surveyed due to the growing state of the healthcare sector within the two largest Emirates.

Detailed projections and market trends for the Abu Dhabi and Dubai healthcare IT market can be found on HIMSS Analytics' Health Information System (HIS) Profile. The HIS Profile provides an aggregated view of HIS with detailed analysis of market penetration, market opportunity as well as age profiles of software applications tracked via the HIMSS Analytics EMR Adoption Model Study. Other HIS Profiles available include Malaysia and the Saudi Arabia.

HIMSS Analytics provides up-to-date and in-depth market intelligence of the healthcare IT industry through our products and services such as the HIMSS Analytics Database, Country Healthcare Snapshot and HIS Profile.


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