In today’s world, healthcare has been considered as one of the top priorities by the global population. With the advancement of technology, critical diseases get cured, which stood as a threat in olden times. The continuous growth of technology and progress in the medical industry has increased the life expectancy of human life. According to the worldwide statistics conducted by Statista, the life expectancy at a global level has risen to a great extent having an average projection of 70 years for males and 75 years for females. The sector has become one of the favourable choices when it comes to business investors to invest as they have multiple dimensions to focus.
According to Deloitte projections, there has been a global rise of 2.9% in the healthcare industry within the period of 2013-2017. The United Arab Emirates have taken this opportunity seriously and has continuously implemented various ways to stand as one of the top global healthcare hubs. This guide aims at providing in-depth details related to the healthcare industry that would help the business investors to look at different aspects before they take the final step to invest.
The Global Scenario of Healthcare Industry
During the period from 2014-2018, the healthcare industry has shown aa tremendous growth holding a market value of nearly $8,452, growing at a compound annual growth rate (CAGR) of 7.3% in 2014. The World Health Organization (WHO) has estimated that there are 9.2 million physicians, 19.4 million nurses and midwives, 1.9 million dentists and other dentistry personnel, over 1.3 million community health workers worldwide which makes this as one of the top segments at the global level.
The future projection states that by the year 2022, the industry will be holding a value of $11,908.9 billion. The healthcare market is further segmented into healthcare services, pharmaceutical drugs, medical equipment, biologics, and veterinary healthcare. The highest contribution has been made by the healthcare services followed by pharmaceutical drugs, medical equipment and other segments. The future projections for the healthcare industry are highlighted below:
The UAE Healthcare Industry
Growing in all possible business domains, the United Arab Emirates have equally focused on the healthcare industry to rope-in more business investors and to enhance the segment to its best by infusing the best technology and medical services. Considering the healthcare industry as one of the top markets, the Emirati government had decided to invest time and money into the segment, and this gave rise to the Dubai Healthcare City, a free zone dedicated to improving the healthcare segment. Before understanding the proceedings in the free zone, it is essential to know how the nation has mapped the growth.
Back in the 1970s and 1980s, both Federal and Emirati level government had regulated the healthcare industry in the UAE. To increase the efficiency and attract foreign investors, the government has opted for liberalization, which allowed more transparency into the system. The ultimate aim was to leverage the possibilities that would contribute its best to build the healthcare sector and make UAE as one of the top investment destinations in healthcare. Data related to the healthcare expenditure in 2007 are highlighted below:
With continuous improvement, in 2008, the total market stood at an estimated value of US$18 billion. Moving forward in 2015, the UAE Government launched a new health insurance program in the City of Gold “Dubai” to support the nationals and get them covered under the health insurance scheme. The Dubai Health Authority (DHA), one of the top government authorities dealing with the healthcare proceedings in the country has made the initiative mandatory for the residents to cover themselves under the insurance scheme, and also will be tied to the renewal proceedings at a later stage. In 2018, the UAE’s health expenditure reached a value of $13.7 billion (AED 50.3 billion), and the figure is expected to reach a count of $14.4 billion (AED 53 Billion) by 2019, which reveals a 5.5% y-o-y increase.
The current market scenario has been continuously spiking up and thus to bring out the best, in 2019 Federal Budget, a total of $16.4 billion (AED 60.3 billion) has been approved for public spending. Investors planning to enter the UAE medical market has got attractive options to set up their business through single or multiple shareholders.
Additionally, the infusion and contribution of technology into the healthcare industry has made a significant impact on the market. The advanced technology that has been widely used in the healthcare industry has given birth to new trends in the healthcare domain. Some of the recent trends include the following:
- Electronic medical reports
- Smart-medical classes for trainees
- Implementation of Artificial Intelligence in Medical Industry
- Advanced medical devices
- Enhanced and customized medicals services
Apart from the tech-infusion in the healthcare industry, the concept of medical tourism has been continually rising in the UAE.
The Growth of Medical Tourism
The ground of the UAE is known as a famous tourist destination. Over the changing years, the government has focused on increasing medical tourism, wherein the tourists seek the best medical, dental, or cosmetic surgeries at a global level. The core drivers of medical tourism involve:
- Advanced Technology (40%)
- Better quality-care medical proceedings (32%)
- Quicker access (15%)
- Lower-cost care medical facilities (9%)
- Lower-cost for discretionary procedures (4%)
Some of the services that are provided in the medical tourism sector include:
Represent the drivers in the form of a pie-chart
By providing high-end medical tourism services, the UAE has made its mark in the minds of global tourists. Majority of the global population seeking for medical tourisms services opt UAE as their ultimate stoppage.
The segment has been scaling up continuously and is expected to hold a massive market in the future. Few projections related to the future of the UAE Medical Tourism is highlighted below.
Dubai Healthcare City
Founded in the year 2002, Dubai Healthcare City is one of the best performing grounds when it comes to the healthcare industry. Located at a distance of around 12 minutes from the Dubai International Airport and 40 minutes from the Dubai World Central Al Maktoum International Airport, the DHC aims to provide high-quality of patient-centred healthcare services, and the centre seeks to attract global tourist and mark Dubai as one of the best healthcare hubs at a worldwide level. The demand of the DHC has been continuously spiking up, which made the government take another step to inaugurate Phase 2 of the centre, which covers an area of 19 million square feet.
Today, the DHC is a ground that serves as a home for more than 4,000 licensed professionals, 120 medical facilities including hospitals, outpatient department, diagnostic laboratories which contributes significantly in enhancing the healthcare industry in Dubai to its next level. With a wide range of partnerships, the DHCC provides numerous services in healthcare, medical education and research, pharmaceuticals, medical equipment, wellness and allied support services. DHC has got a wide range of investment portfolio that covers multiple areas ranging from clinical, commercial, retail, business centre and free-hold land. To know more about Dubai Healthcare City, click here.
How to Start a Business in Dubai Healthcare City?
Investors need to follow a series of steps to incorporate a business in the Dubai Healthcare City (DHC) which involves:
- Apply for the provisional approval
- Submit a copy of the business plan to the free zone authorities
- Submit the legal documents for company registration
- Provide the board resolution of natural shareholders
- Pay the requisite fee
Once the records get analyzed, the license will be issued within 2-4 weeks.
Documents Required to Setup a Business in Dubai Healthcare City (DHC)
For Company Incorporation
- Proof of trade name reservation and initial approval for the activities
- Passport copies of the shareholders
- Passport copy and resume of the manager
- Personal Information Sheet for each shareholder and manager
- Documents for lease agreement [it is mandatory to have a physical business/ office address in the UAE for company setup]
- Attested and notarized Memorandum of Association/ Articles of Association from the UAE Embassy at the place of origin (only for corporates)
- An attested and notarized power of attorney appointing a business advisor as your legal representative to act on your and/or shareholders behalf
- Attested and notarized certificate of registration or incorporation, and business license of existing company/ entity by the UAE Embassy (only for corporates)
- A physical address for your business
For Branch Setup
- Passport copies and the personal information sheet of the manager and shareholders, along with the resume of the manager (the manager must have a university degree)
- Proof of trade name reservation for the new branch and initial approval sheet for the activities performed by each shareholder and manager
- Initial approval proof for the activities to be performed in the new branch
- Notarized Memorandum of Association/ Articles of Association of your existing main branch at the place of origin by a UAE Public Notary
- The lease agreement of the new branch [it is mandatory to have a physical UAE business address with a minimum of 60 sq.m. space]
- Existing company or entity’s certificate of registration/ incorporation or license., duly attested and notarized by the UAE Embassy
- Board resolution of the directors of your existing company at the place of origin showing the expression of interest for establishing a branch of the current entity in DHCC (only for corporate shareholders)
- Company profile of your main branch (only for corporate shareholders)
- Your physical business addresses
According to the future projections of Emirati Government, the spending is expected to reach an account of $18.3 billion (AED 67.2 billion) by 2023. With another forecast of 10-years, the health expenditure is expected to touch $26 billion (AED 95.5 billion) by 2028, which would stand as 3.6 per cent of the nation’s GDP.
The Dubai Healthcare Strategy 2021
In 2016, the Government of UAE had taken an initiative to launch Dubai Healthcare Strategy 2021 that holds four main approaches, six objectives, 15 programmes and 93 initiatives, that had been planned accordingly to carry out the operations and implement them successfully by 2021.
To stand as a competent and compatible global leader in the delivery of healthcare services, the 2021 strategy provides a complete development process that would contribute significantly to developing the Dubai Health Ecosystem. Additionally, it will also rope in public and the private sectors that would together accomplish the end goal. To know more about Dubai Health Strategy 2021, click here.
Benefits of Starting a Healthcare Industry in the UAE
The UAE has positioned itself in the minds of global investors due to the multiple benefits or leverages that it provides related to company incorporation process. Here are a few benefits that business professionals can avail by setting up a healthcare company in the UAE.
1. A Growing Market
The United Arab Emirates have successfully transformed itself from an oil-based economy to a non-oil-based economy, and have fetched the right amount of revenue over a specific period. Standing as a home to a million of foreign ex-pats that include entrepreneurs, investors, working professionals, tourists, the region is an excellent platform for the healthcare industry. The market has been a thriving one and is expected to grow more after 2020.
2. Expo 2020
Much awaited World Expo 2020 is looked like a business collaboration destination that would contribute significantly to the development of the world economy. Be it SMEs or MNCs, and every business entity has got its role to play and grab the most out of the event. According to the projections made, the event will grab the attention of more than 25 million investors and fetch in more than AED 122.6 billion in the nation’s economy. To know more about Expo 2020, click here.
3. International Exposure
One of the vital criteria that investors look forward while incorporating a business in the region of UAE is that they can give international wings to their brand. The goodwill and brand value of a business entity increases the moment it attains an international recognition. Also, the business entity to enter the global competitive market and upscale it at every possible point.
4. Technologically Advanced
The region of UAE is known for innovation and visionary leadership. Proper planning and foresight of a business entity help the business owners to carry out the activities and operations in a smooth way. The UAE takes the interest of pervading the technology in all possible business domains, and the healthcare industry is one of the dominating markets for the tech market. The region has already implemented Artificial Intelligence in different sectors, like the retail and media industry. To know more about it, click here. When it comes to the healthcare sector, the adoption of new technologies has been made to smoothen the healthcare industry and deliver the best services to global patients and the medical world in a holistic way.
5. Dedicated Areas
The UAE provides dedicated business zones which can be used by a different set of business owners and professionals backed by the capital invested and the number of shareholders available.
- The Mainland option offers the business entities to perform the business activities all over the UAE and has got no restrictions when it comes to international expansion
- The Free Zones are tax-free areas which have been incorporated to boost the entrepreneurs and newbies to start their business entities in the region
- The Offshore zone turns out to be feasible for business entities which have been already registered in any other foreign country and want to operate its business activities outside the national boundaries.
6. Easy Attainment of Business License
To incorporate a business in the region of UAE, business investors need to hold business licenses, that act as a legal permit to carry out the authorized operations. The area of UAE provides multiple business licenses that need to be operated by different industries accordingly. To get a better idea on the types of business licenses available in the UAE, click here.
7. Easy Expansion
The nation of UAE shares its boundaries with numerous countries like Oman, Bahrain, Saudi Arabia, which helps the business owners to efficiently plan and expand their business as and when required and generate more revenue. The nation has got multiple options when it comes to business expansion, be at a national or international level.
8. Various Business Options
When it comes to the healthcare industry, a businessman or investors has got numerous options ranging from starting a medical unit or clinic to a hospital etc. Business owners, investors, industrialists, freelancers, have got a huge market to play around if they are well-versed with the business tactics and have the determination to succeed. Irrespective of the size and nature of the business activities aligned, the UAE is an open-ground for any kind of business. To know about the options available in the healthcare sector, click here.
The healthcare industry is one of the growing businesses in the grounds of the UAE. Outstanding as one of the best investment decisions, the healthcare industry in the UAE has been grabbing the attention of international investors who find the UAE and Healthcare as the perfect investment blend. Initiating the business process might stand as a complicated task if not handled in a professional manner. Thus, the UAE demands the business entities to hold a complete professional process when it comes to company incorporation.
How Can Commitbiz Help?
Who are we?
Commitbiz Consultants stands precisely the same, holding the position of one of the best business consultants in the UAE. Our professional experts are well-versed with the incorporation procedures and maintain a vision to accelerate your business.
What do we do?
As business experts, our core tasks are highlighted below:
- Provide business license
- Act as a catalyst between clients and the UAE government
How can we benefit you?
Standing as one of the top ten business consultants in the UAE, we assist you in the following processes:
- Strategize to accelerate your business growth
- Streamline your business activities
- Comply with the legal rules and regulations
- Provide tailored business solutions
- Establish the business pillars post-incorporation process like accounting, taxation etc.
If you are planning to step ahead and set up your company in UAE, do contact us today-we’d be glad to assist.
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