Dubai healthcare sector to grow further

Growth driven by rising demand from the population, urbanisation, and a fluctuating lifestyle.

The Dubai healthcare sector continues to grow, primarily due to rising demand from the population, urbanisation, and a fluctuating lifestyle that contributes to an increase in chronic diseases, according to Mansoor Ahmed, regional director at Colliers International for Healthcare, Education and PPP.

“With the introduction of compulsory health insurance, and the promotion of Dubai as a regional medical hub, the healthcare sector is expected to witness further growth in demand,” Ahmed said in a statement on Tuesday.

According to Colliers International’s Dubai Healthcare Overview report, Dubai has experienced a medical construction boom in the last decade with the growth of the population.
Hospital bed occupancy stood at around 56 per cent during 2011 and 2012. The number of available beds in 2012 in the private sector reached 1,468, compared to 793 in 2005, marking a compound annual growth rate (CAGR) of 9.2 per cent.

“Based on the growth in the number of beds, by the year 2020, the number is expected to reach approximately 2,900, however, the occupancy levels in Dubai presently stand at 56 per cent, comparatively, based on international standards a hospital can operate efficiently up to 80 per cent occupancy levels,” Ahmed said.

Colliers estimates that if the private sector achieved 80 per cent occupancy by 2020, the total number of beds required in Dubai is likely to be 2,100, he said.
According to the report, the number of outpatients in the private healthcare sector reached 5.6 million in 2012, representing a CAGR of 12.3 per cent from 2005 to 2012. By 2020, it is expected to reach as high as 14 million.

Meanwhile, inpatients in the private sector reached almost 132,000 in 2012, representing a CAGR of 26.4 per cent from 2005 to 2012. By 2020, the number of inpatients is expected to reach over 800,000.

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