Reimagining Healthcare in the GCC: Trends, Challenges and Opportunities

The GCC healthcare market continues to exhibit robust growth, driven by factors such as increasing population, rising incomes, and a growing emphasis on health and wellness. As we look back on the year, several key trends have emerged that will shape the future of healthcare in the region.

Key Trends Shaping GCC Healthcare

1.????? Investment in Capacity Development: GCC countries are actively investing in expanding healthcare capacity to meet the growing demand for services. According to Alpen Capital , the current healthcare expenditure (CHE) in the GCC grew at a CAGR of 9.5% between 2020 and 2022, reaching $104.1 billion. This upward trajectory is expected to continue, with healthcare expenditure projected to hit $135.5 billion by 2027, growing at a CAGR of 5.4% from 2022.

This financial commitment is reflected in infrastructure investments as well. Between 2020 and 2022, the GCC added 1,846 hospital beds to its healthcare system, and the region will likely require 12,207 additional beds by 2027 to keep pace with population growth. This represents an annual average growth rate of 1.9%, leading to a collective bed capacity of 133,731 beds by 2027. Saudi Arabia and the UAE, in particular, are projected to see significant demand, with 8,197 and 1,584 new hospital beds required, respectively.

Examples of these capacity development efforts include Qatar's focus on improving healthcare capacity and Abu Dhabi's initiatives to enhance primary care and mental wellbeing services. Saudi Arabia has also made significant strides in capacity development, allocating substantial investments to expand healthcare infrastructure, improve access to care, and enhance the overall quality of services.

2.????? Prioritizing Non-Communicable Diseases: The rising prevalence of non-communicable diseases (NCD), such as obesity and mental health conditions, has prompted a significant shift towards preventive care and community-based approaches across the GCC. According to a 2024 UNDP report , NCDs are the leading cause of death and disability in the region, with the four major NCDs accounting for nearly 40,000 deaths annually. Cardiovascular diseases (CVDs) alone are responsible for approximately 30,000 of these deaths, making up 75% of deaths caused by NCDs and 31% of all deaths in the GCC. Alarmingly, many of these fatalities are premature, with individuals passing before the age of 70.

The economic impact of NCDs is equally profound, with the report estimating an annual cost of $50 billion, which equates to around 3.3% of the GCC countries’ 2019 GDP. These staggering figures underscore the urgency of addressing NCDs through robust healthcare policies and interventions aimed at prevention and early detection.

Governments in the GCC are increasingly focusing on lifestyle-related initiatives, awareness campaigns, and community-based healthcare solutions to mitigate the growing burden of NCDs. This shift towards preventive care is vital in reducing both the health and economic impacts of NCDs in the region.

3.????? Localization of Healthcare Innovation: GCC countries are increasingly focused on developing a healthcare innovation ecosystem within the region. This involves attracting talent, fostering research and development, and supporting local startups. Saudi Arabia and the UAE have taken significant steps towards localization, recognizing its potential to drive economic growth and improve healthcare outcomes.

A prime example is the Abu Dhabi Investment Office (ADIO), which has been instrumental in attracting global healthcare companies to the Emirate. ADIO offers various incentives and support programs, including funding, talent acquisition, and market access, to encourage foreign investors to establish research and development centers and manufacturing facilities in Abu Dhabi.

Additionally, the Dubai Healthcare Authority (DHA) has launched several initiatives to foster innovation within the healthcare sector. These include the Dubai Healthcare City (DHCC), a free zone dedicated to healthcare and medical research, and the Dubai Future Foundation, which supports emerging technologies and startups. By creating conducive environment for innovation and collaboration, the UAE is positioning itself as a regional leader in healthcare and technology services.

Similarly, under Saudi Vision 2030, the Kingdom is prioritizing local production, technology transfer, clinical trials, and workforce training. The Public Investment Fund (PIF) recently launched the Pharmaceutical Investment Company (Lifera ), a major initiative designed to accelerate the growth of the local biopharmaceutical industry. This move not only strengthens national resilience but also positions Saudi Arabia as a global pharmaceutical hub. By encouraging companies to invest locally rather than export to the Kingdom, Saudi Arabia is creating a more sustainable and self-sufficient healthcare ecosystem.

4.????? Adoption of best practices: GCC healthcare systems are striving to adopt best-in-class practices to enhance efficiency, improve outcomes, and align with global standards. For instance, value-based care (VBC) models, which focus on providing quality care at lower cost, have gained significant traction in the region. For example, the UAE has implemented VBC pilots in select hospitals, and Saudi Arabia has introduced initiatives to promote value-based purchasing .

However, challenges remain in fully implementing VBC models. These include data availability and quality, cultural and organizational change, and funding constraints. But, despite these challenges, the GCC region is making strides in adopting best practices and improving the quality and efficiency of healthcare delivery. Continued efforts to address the underlying challenges will be essential for realizing the full potential of value-based care in the region.

Looking Ahead

As we move forward, several key areas will continue to shape the GCC healthcare landscape:

• Digital Health: The integration of technology is revolutionizing healthcare delivery. Electronic health records, telemedicine, and AI-powered diagnostics are transforming patient care, enhancing efficiency, and enabling remote access to healthcare services.
• Public-Private Partnerships: Collaborations between public and private sectors (government agencies, private healthcare providers, and technology companies) can drive innovation, improve access to care, and optimize resource allocation.
• Talent Development: Investing in healthcare professionals and developing a skilled workforce will be essential for meeting the growing demand for quality care. This includes focusing on specialized areas like medical technology, data analytics, and public health.
• Sustainability: Addressing environmental sustainability and reducing carbon footprint of healthcare operations will become increasingly important.

?The GCC healthcare market is poised for continued growth and innovation. By addressing these key trends, healthcare providers and policymakers can position the region as a leader in global healthcare delivery.

Sumit Sharma , Adeel Kheiri , Dr. Matthew Stubbs , Dr. Samer Abi Chaker , Florian Van Steendam , Esmat B. , Dr. Alexandra Szelenyi , Gabriele Santamaria

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