The GCC Countries Digital Health Market is poised for healthy double-digit growth by 2027, driven by favorable funding for healthcare IT and digital transformation initiatives in Saudi Arabia and the United Arab Emirates (UAE). Rising awareness of digital health solutions, increasing integration of artificial intelligence (AI), the Internet of Things (IoT), and 5G in healthcare, alongside growing healthcare spending in non-hospital settings, are propelling market expansion. However, potential cyber threats and inadequate legal and regulatory frameworks around data protection, privacy, and intellectual property rights pose challenges for the market.
Digital health, encompassing telehealth, mHealth apps, connected medical devices, electronic health records (EHRs)/electronic medical records (EMRs), healthcare analytics, and digital therapeutics, continues to transform care delivery across the GCC region.
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Favorable Government Support Accelerates Market Growth in Saudi Arabia and UAE
Saudi Arabia accounts for nearly 60% of the GCC countries’ healthcare expenditure, with healthcare remaining a top priority for the government. In its 2023 budget, Saudi Arabia allocated $50.4 billion (SR189 billion) for Health and Social Development, with significant investments directed toward digital health initiatives to improve accessibility, efficiency, and transparency within its healthcare system. The Saudi government targets digitalizing 70% of patient activities by 2030 to reduce dependence on hospital-based care.
In May 2023, King Faisal Specialist Hospital and Research Centre (KFSH&RC) launched the Strategic Partner in Innovation & Excellence (SPInE) initiative to create an open, interoperable platform for healthcare data, tools, and AI algorithms. This initiative is advancing AI applications in diagnostic imaging, genetics, preventive care, and population health while fostering collaboration between healthcare specialists, researchers, and technology experts.
The entry of health tech startups such as Cura Healthcare, Nala Health (acquired by Integrative Health), Altibbi, Ynmodata, and Labayh is also fueling digital health adoption in Saudi Arabia and the UAE. These companies leverage AI, IoT, and big data analytics to predict, prevent, and manage diseases effectively.
UAE Strengthens Digital Health Infrastructure with Innovative Programs
The UAE continues to drive digital health transformation through aggressive electronic health records implementation. Its integrated and paperless health record system, Wareed, minimizes medication errors and hospital stays. This system has been enhanced with ‘ClinicalKey’ to further improve clinical decision-making.
The UAE government is engaging with private database providers such as Cerner Corporation, Epic Systems, and InterSystems to unify public and private medical data under a single integrated health record system. It also actively supports telemedicine, approving multiple companies to offer telehealth solutions in the country. As part of a Public-Private Partnership (PPP), GE Healthcare, the Ministry of Health and Prevention, and Abu Dhabi International Medical Services have formed ‘Unison’ – the UAE’s first public sector teleradiology capability – to transform diagnostic services.
Additionally, the Ministry of Health and Prevention plans to launch a comprehensive “Smart Digital Health” regulatory framework mandating that all healthcare providers offer at least one remote service, such as consultations, medication prescriptions, monitoring, or robotic surgeries, by the end of 2023.
Covid-19 Pandemic Accelerated Digital Health Adoption
Strict social distancing measures during the Covid-19 pandemic catalyzed the use of virtual care solutions across GCC countries, including online doctor consultations, e-prescriptions, online pharmacies, and remote patient monitoring (RPM). These trends are expected to continue as the new normal in the Arab world.
“Post-Covid-19, digital health adoption surged to enhance patient experiences and improve care quality, particularly in Saudi Arabia,” noted a Partner at a UAE-based venture capital firm. “Companies like Nala Health and Cura Healthcare are prime examples, offering instant consultations and tailored digital care programs. Government apps such as Mawid, Tabaud, and Seha enable virtual consultations, eliminating unnecessary hospital visits.”
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Strong Funding Environment Supports Digital Health Startups
Recent years have seen significant investments in GCC digital health startups, fueling market growth.
For instance:
- June 2022: WEMA Health launched services in the UAE after raising $3.5 million in seed funding led by Dawn Health. The company offers a virtual obesity program that helps members reduce up to 20% of their body weight through expert-designed protocols.
- March 2022: Altibbi, the Middle East’s largest AI-based digital health platform, raised $44 million in Series B funding led by Foundation Holdings, Hikma Ventures, Global Ventures, and DASH Ventures. The funds will expand online pharmacy and diagnostics services and enhance machine learning capabilities to support doctors in delivering accurate diagnoses and prescriptions.
Competitive Landscape and Growth Strategies
Key players shaping the GCC Countries Digital Health Market include:
- 3M Health Information Systems
- GE Healthcare
- Philips Healthcare
- InterSystems
- Cerner Corporation
- Epic Systems
- Altibbi
- Cura Healthcare
- Integrative Health (acquired Nala Health)
- Ynmodata
- Labayh
- AlemHealth
- Okadoc
- Vezeeta
- GluCare.Health, among others.
Leading players continue to adopt organic and inorganic strategies to strengthen their market position. For example, in March 2023, KFSH&RC signed a Memorandum of Understanding with Oracle to accelerate electronic medical record technology adoption and drive digital transformation in Saudi healthcare. In November 2022, Altibbi launched ‘Weqaya,’ a men’s health subscription plan focusing on prevention, early checkups, and family care needs.
Outlook: Digital Health to Drive Healthcare Transformation in GCC Countries
With increasing demand for telehealth, virtual visits, mHealth apps, remote patient monitoring, online pharmacies, fitness and diet management apps, and mental well-being solutions, the GCC Countries Digital Health Market is expected to gain further momentum. Investments in healthcare IT, growing wearable medical device adoption, and aggressive growth strategies by market players will accelerate digital transformation, delivering improved health outcomes across the region.
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