The UAE healthcare market is experiencing growth, driven by patient-centric ecosystem, policy reform, and rising health consciousness. Over 800,000 genomes have been sequenced under the Emirati Genome Program, reflecting the country’s commitment to personalized medicine. Additionally, more than 70% of Dubai’s population is served by private healthcare facilities, reflecting the critical role of private players in service delivery. With medical costs across MENA expected to rise by 12% by end of 2025, the UAE is actively transitioning towards cost-optimized, AI-integrated, and prevention-first healthcare models. The UAE is positioning itself as a regional leader and a hub for global investors.
What’s Driving Healthcare Market in UAE?
- The mandatory health insurance expansion and expat-driven demand is fuelling the healthcare market in UAE. Over 98% of UAE residents are covered by mandatory health insurance schemes, with employers legally required to provide coverage to all employees and their dependents. In Abu Dhabi alone, the Department of Health reported over 1.6 million insurance claims processed per month in 2024, reflecting a consistent rise in outpatient and preventive service usage.
- The UAE is aggressively shifting from reactive to predictive care. Through the Emirati Genome Programme (EGP, the country has already sequenced over 800,000 genomes. A recent Ministry of Health report revealed that 67% of UAE residents aged 36–60 are pre-diabetic, leading to an aggressive rollout of nationwide blood glucose monitoring programs and preventive care checkups.
- The UAE’s dual-model healthcare system has enabled rapid infrastructure scaling. In Dubai, over 70% of the population relies on private healthcare, and nearly 60% of licensed healthcare facilities are privately operated. In 2024, 10 new hospitals and over 150 clinics were added across the UAE.
Competitive Landscape
The UAE healthcare market is experiencing intense competition, among large regional hospital networks, internationally renowned healthcare institutions, and digital health innovators. The major players including Cleveland Clinic Abu Dhabi, Mediclinic Middle East, and Aster DM Healthcare dominates the landscape. Cleveland Clinic Abu Dhabi remains a flagship tertiary care center in the UAE. In 2024, the facility had recorded over 1 million patient visits and completed 26,000+ surgeries, including 800+ multi-organ transplants and 6,400+ neurosurgeries. Mediclinic Middle East has made aggressive investments in UAE expansion. In 2025, the company announced a AED 120 million investment to upgrade its Airport Road Hospital in Abu Dhabi. Meanwhile, Dubai-based Aster DM Healthcare is among the largest integrated healthcare providers in the Gulf.
Rising Medical Costs and Affordability Imbalance
The UAE healthcare market is facing a major challenge of rising treatment costs. According to Global Medical Trends Survey, medical costs in the UAE are expected to rise by 12% in 2025. This rise is driven by increased demand for specialized care, imported pharmaceuticals, and higher salaries for skilled healthcare professionals. A key factor exacerbating this issue is the overutilization of insured healthcare services, particularly in outpatient segments. Private hospitals, which handle a majority of outpatient services in urban centers like Dubai and Abu Dhabi, are also facing increased operational costs due to growing reliance on imported medical devices and pharmaceuticals.
Future Outlook
The UAE healthcare market is set to position itself among the top 10 healthcare systems globally by 2030. This ambition is driving a transformation in infrastructure, talent, and regulatory strategy. Dubai alone is expected to face a shortfall of 1,614 acute care beds by 2030, reflecting accelerated investment in hospitals and clinics. Digital innovation will be the backbone of this future healthcare model. By 2030, all major healthcare providers are expected to integrate real-time AI systems into ICU triage, radiology, and infection control, building on the 40+ predictive AI models already deployed in public hospitals. Looking ahead, the UAE is transitioning toward value-based healthcare, with reimbursement models shifting from service volume to health outcomes.
Consultant at Nexdigm In their latest publication “UAE Healthcare Market Outlook to 2030: By Service Type (Hospital Services, Inpatient Care, Outpatient & Day-Care Procedures, Emergency Services, Diagnostic Services), By Facility Type (Public Hospitals and Clinics, Operated by MOHAP, SEHA (Abu Dhabi), and DHA (Dubai), Private Hospitals and Clinics, Specialty Centers, Health Tech Platforms) and By Application (General Medicine & Family Practice, Cardiology & Cardiac Surgery, Orthopedics & Joint Replacement, Gynecology & IVF, Mental Health & Psychiatry)” believe that by expanding AI integrated sepciality clinics to amnage chronic disease burdens, businesses can gaining competitive advantage in UAE healthcare market.