Healthcare expenditure in the UAE may rise by as much as 9 percent in anticipation of a rapidly aging population and because of above average medical inflation rates and the implementation of mandatory health insurance, according to a new report from Alpen Capital.
In its GCC healthcare industry report, Alpen Capital noted that the GCC’s current healthcare expenditure (CHE) is expected to reach $104.6 billion in 2022, registering a compound annual growth rate (CAGR) of 6.6 percent from an estimated $76.1 billion in 2017.
According to Alpen Capital, the growth is being driven by expanding populations, a high prevalence of non-communicable diseases, rising treatment costs and the increasing penetration of health insurance.
Additionally, the report noted that the outpatient market size in the region is expected to grow at an average rate of 7.4 percent each year, to $32 billion between 2017 and 2022. The impatient market is forecast to increase at a CAGR of 6.9 percent to $45.4 billion.
On a country-by-country basis, the report predicts that CHE will expand at annual average rates of between 2.6 percent and 9.6 percent. The UAE and Oman are both forecast to witness growth rates of above 9 percent, while Saudi Arabia – the region’s largest market – is expected to see 6.1 percent growth in CHE.
The report also notes that the region is expected to require 12,358 new hospital beds by 2022, which translates into an estimated annual growth of 2.2 percent from 2017 to reach a collective bed capacity across the GCC of 118,295.
The report noted that there are over 700 healthcare projects worth $60.9 billion in various stages of development across the GCC.
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