MENA Healthcare Services Market Size, Share & Industry Analysis, By Type of Service (Hospital Care, Physician & Clinical Services, Dental Services, Diagnostic Services, Nursing Care, and Others), By Funding Source (Public Health Insurance, Private Health Insurance, and Out-of-Pocket), By Type of Care (Inpatient Care and Outpatient Care), By Facility Type (Hospitals, Clinics, Diagnostic Imaging Centers, Pathology Labs, and Others), and Regional Forecast, 2024-2032

The MENA healthcare services market size was valued at USD 226.97 billion in 2023. The market is projected to grow from USD 241.13 billion in 2024 to USD 412.25 billion by 2032, exhibiting a CAGR of 6.9% during the forecast period.

The MENA healthcare services market consists of services provided for the prevention, diagnosis, and treatment of diseases. These services are typically provided at the healthcare facilities, such as hospitals, clinics, primary health centers, and in home settings. It includes the services provided through the insurance and the out-of-pocket payment methods.

The MENA (Middle East and North Africa) healthcare services market is highly fragmented. Financing, payment, regulations and behavior of the providers and consumers are factors directly affecting the market. The MENA market is growing due to increasing healthcare expenditure, rising demand for these services, robust prevalence of diseases, and a growing elderly population. Additionally, government initiatives to improve access to healthcare, increasing private investments in the healthcare infrastructure, and a growing awareness of the importance of preventive healthcare increase the adoption of these services in the region. Furthermore, the advancements in technology, the adoption of digital health services, and the increase in public-private partnerships are improving healthcare access to the general population.

The privatization initiatives by the governments of the MENA countries are also resulting in the growth in the number of hospitals, clinics, and other healthcare facilities. Along with privatization, mandatory health insurance and growth in inbound medical tourism are the additional factors expected to drive market growth in the near future. Additionally, the rising collaborations in the healthcare sector to equip healthcare facilities are further anticipated to drive the market.

Moreover, the COVID-19 pandemic significantly increased the healthcare services adoption in the region. The pandemic has led to a surge in the demand for these services, particularly for the testing, treatment, and vaccination for the COVID-19 infection in 2020 and 2021. In addition, the pandemic accelerated the adoption of telemedicine and it became an instrumental tool in the consultations. The market returned to the pre-pandemic level in 2022 and is anticipated to grow steadily during the forecast period.

MENA Healthcare Services Market Trends

Adoption of Digital Health in the Region to Boost Market Growth

Digital health includes mobile health, health information technology, telehealth and telemedicine wearable devices, and personalized medicine. These technologies are used in various applications, such as consultations, diagnoses, and patient monitoring, among others.

The digital evolution of healthcare in many Middle Eastern and North African nations has been witnessed recently. The regulatory bodies in these counties are collaborating with private organizations to implement digital technologies, such as electronic health records, virtual consultation, and mobile apps to engage patients.

• In March 2022, the Saudi Arabian Government launched the Seha Virtual Hospital, the e-health provider in the region. It remotely supports 130 hospitals across the country and provides over 30 specialized services.

Additionally, telehealth is experiencing rapid growth in terms of the healthcare industry in the MENA region. It helps to bridge the geographical gaps and provides access for individuals in remote or underserved areas. The increased presence of telemedicine providers is fueling the development of this sector across the MENA. The COVID-19 pandemic has further highlighted the importance of telehealth in the healthcare sector.

• For instance, in October 2022, Saudi Arabia’s MoH mandated that telehealth be included in the healthcare insurance coverage by both the public sector and private sectors.

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MENA Healthcare Services Market Growth Factors

Rising Number of Insured Population to Increase Healthcare Service Access in the MENA Region

One of the key growth drivers for the healthcare service sector is an increase in the insured population. The gradual penetration of mandatory health insurance initiatives in the region is anticipated to drive the understanding of the utility of healthcare services. For instance, medical insurance is mandatory to renew the residency for expats, private workers, and tourists in some parts of the Middle East and North Africa. This practice of mandatory health insurance policies for various individuals increases the insurance penetration in the region and surges the adoption of healthcare services. 

Moreover, the government initiatives to increase the number of private insurers and foreign investment in the region are anticipated to increase the adoption of healthcare insurance policies, and the market is anticipated to grow.

• For instance, in 2023, Cigna Worldwide Insurance Co., a U.S.-based health insurance company, received a license to operate as a health insurer in Saudi Arabia. It became the first foreign insurance company to operate in the region. Such initiatives increase the insurance penetration and provide better coverage, which could increase the market growth in the region.

Increasing Prevalence of Diseases to Promote the Healthcare Service Adoption

Socioeconomic factors, including rapid urbanization, industrialization, sedentary lifestyles, unhealthy diets, and higher tobacco use, increase the burden of cardiovascular diseases, diabetes, cancers, respiratory illnesses, and others.

Similarly, the obesity and hypertension rates are high in the MENA region, which further augments the risk of chronic conditions, such as cardiovascular diseases.

For instance, according to a study published in the Journal of Obesity in February 2022, around 21% of the Middle East population is obese, and 33% is overweight.

The growing burden of diseases has stimulated the governments in the region to focus on improving the healthcare services to control these diseases. Countries are investing more in the acute healthcare system, primary health centers, and healthcare reforms to enhance the quality of services and address this challenge. The rise in patient population, awareness among the populations, and the increasing number of healthcare projects across regions are expected to drive the MENA healthcare services market growth in the near future.

RESTRAINING FACTORS

Lack of Healthcare Professionals and Facilities Hamper Market Growth

The healthcare sector in the Middle East and North Africa (MENA) has significantly improved in the last decade. However, there is a significant shortage in the number of healthcare professionals in the region. There are a limited number of doctors, nurses, and other healthcare professionals in the region. Various factors, such as population growth, inadequate training capacity, and international migration, are the major reasons contributing to the healthcare professional’s shortage in the region.

• As per the World Health Organization’s WHO Health Workforce Support and Safeguards List 2023, globally, 55 countries have significant healthcare staff shortages. These countries have fewer than the median of 49 health workers per 10,000 people, and more than 40 countries in the list are located in the Middle East and Africa.

Moreover, countries in the region, such as Lebanon and Sudan, lack the primary healthcare infrastructure, and there are a limited number of hospitals, clinics, and diagnostic centers. These factors are reducing the accessibility of these services in the region and limiting market growth.

MENA Healthcare Services Market Segmentation Analysis

By Type of Service Analysis

Hospital Segment Dominated Due to Comprehensive Service Provision

Based on type of service, the market is classified into hospital care, physician & clinical services, dental services, diagnostic services, nursing care, and others.

The hospital care segment accounted for the largest revenue share in the region. The gradual increase in the number of hospitals due to privatization initiatives in the region and the advancements in the medical facilities and comprehensive service offerings, such as doctor consultations, diagnoses, and treatment in the same facilities are increasing the adoption of hospital services. Furthermore, the adoption of digital technologies in hospitals for patient management is anticipated to boost the number of patient visits in the hospital segment.

• For instance, in January 2023, Sheba Medical Center collaborated with Bahrain’s King Hamad American Mission Hospital (AMH) to incorporate digital technologies at the Bahraini hospitals. These investments are anticipated to improve the patient’s treatment outcomes and increase the number of patient visits, which will increase the segmental growth in the region.

The physician & clinical services segment is anticipated to grow at a high compound annual growth rate. The rising number of specialty clinics and rising demand for cosmetology are expected to increase the adoption of clinical services in the region.

In 2023, dental services held a significant share of the market due to the increasing cases of dental caries and the surge in restorative procedures in dental clinics.

Diagnostic services held a substantial share of the market due to the increasing cases of diseases that require primary examination and diagnosis. Furthermore, the increasing patient visits to these facilities is expected to propel the segmental growth during the forecast period.

The others segments, including home healthcare services, long term care services, physiotherapy are expected to grow considerably in the coming years. The segment’s growth is attributed to the rising prevalence of chronic diseases that require long-term care and the shift toward home settings to reduce long-term care in the clinical settings. 

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By Funding Source Analysis

Increasing Focus of Government Offering Insurance to Fuel Public Health Insurance Segment Growth

In terms of funding source, the market is classified into public health insurance, private health insurance, and out-of-pocket.

The public insurance segment accounted for the maximum MENA healthcare services market share. The primary factor that boosts the market share of the public health insurance segment is the government's focus on offering affordable health services to its population. Mandatory health insurance policies and improving health insurance coverage are expected to boost the segment’s growth.

• For instance, the Saudi Arabia Ministry of Health announced state-funded comprehensive health coverage in the country by 2026.

The private health insurance segment is anticipated to grow at the highest CAGR in the region. Increasing penetration of private health insurance and foreign investments are expected to drive the utility of healthcare services by improving healthcare infrastructure and advancing medical services. The out-of-pocket segment will witness positive growth in the forecast period owing to the growth of this funding source in Egypt and Jordan, where public health insurance coverage is comparatively limited.

By Type of Care Analysis

Rising Prevalence of Chronic Diseases Increases the Demand for Inpatient Care

Based on type of care, the market is divided into inpatient care and outpatient care.

The inpatient care segment dominated the market in 2023. The increase in the prevalence of chronic diseases such as diabetes, cancer, and cardiovascular diseases is contributing to the demand for inpatient care across the region. As these diseases require long-term care, the segment is expected to grow in the coming years.

• As per the data by the International Diabetes Foundation, 59.3 million adults in Egypt had diabetes in 2021. Such high prevalence and rise in the micro and vascular complications associated with diabetes are anticipated to increase hospitalization in the coming years.

The outpatient care segment is expected to grow with a higher CAGR in the forecast period. The rising focus on preventive care among the general population is anticipated to increase clinic visits and diagnostic test adoption, which is expected to grow the segment rapidly in the region. Moreover, the penetration of ambulatory surgical centers in GCC countries is expected to increase the segment growth in the near future.

• For instance, in November 2022, Mubadala Health opened a multispecialty day surgery and outpatient clinic in Dubai. This could increase the adoption of day surgery and is expected to increase the demand for outpatient care in the region.

By Facility Type Analysis

Hospital Segment growth is attributed to the Substantial Investment in Hospitals

Based on facility type, the market is categorized as hospitals, clinics, diagnostic imaging centers, pathology labs, and others.

The hospitals segment held a major market share in 2023 and is anticipated to dominate the market during the forecast period. The robust pipeline for hospital projects and privatization initiatives, coupled with the increasing prevalence of chronic diseases, is expected to drive the segment’s growth in the region.

• For instance, in May 2023, Oman's Ministry of Health initiated the construction of 11 new hospitals across Oman. Under the project, Al Suwaiq Hospital in North Al Batinah, the new Sultan Qaboos Hospital in Salalah, the new Khasab Hospital, and Mad'ha Health Centre are some of the major hospitals, and all the hospitals are expected to be functional by 2025. This would increase the country's service provision capacity.

The clinics segment is anticipated to grow rapidly in the region. The growth of the segment is attributed to the growth in the number of specialty clinics in the region. Additionally, key hospital player’s focus on launching specialty clinics in collaboration with physicians in the region is anticipated to drive market growth.

• For instance, in January 2023, Burjeel Holdings launched an orthopedic clinic in the United Arab Emirates (UAE) in collaboration with orthopedic doctor Dr. Dror Paley.

The diagnostic imaging centers & pathology labs segment held a significant share of the market. The segmental growth is due to the growing prevalence of chronic diseases in the region, which increases the demand for diagnosis and examination in these settings. Furthermore, the growing number of these facilities in the region is expected to propel the segmental growth.

COUNTRY INSIGHTS

In terms of geography, the market is studied across Saudi Arabia, UAE, Egypt, Kuwait, Qatar, Algeria, Israel, Morocco, and the rest of the Middle East and North Africa.

Saudi Arabia held the largest market share in 2023, generating a revenue of USD 59.43 billion and is expected to maintain its dominance during the forecast period. The region’s growth is attributed to an increase in healthcare investments by the government to boost private participation and new healthcare project launches. Rapidly growing infrastructure and increasing prevalence of lifestyle diseases are the additional factors that are boosting the growth of the market.

• For instance, in May 2024, the Saudi Arabia Health Ministry announced that the government would approve 100 more healthcare projects in the region by 2027 to increase private participation.

UAE is anticipated to grow at the highest CAGR during the forecast period as the flourishing medical tourism in the UAE is a significant factor driving market growth. The growth in medical tourism increases the investment in advanced healthcare infrastructure, which further boosts healthcare visits in the country. Additionally, digital initiatives in the consultations and diagnoses are anticipated to improve the efficiency of the healthcare sector to address the growing demand for these services, which could boost the revenue of healthcare service provision.

• For instance, According to a Dubai Health Authority (DHA) report, Dubai witnessed 674,000 medical tourists in 2022. It generated a revenue of USD 270.0 million in 2022, witnessing a considerable growth from USD 71.3 million in 2021.

Egypt held a considerable revenue in the market for MENA healthcare services. Rapid growth in the population and the rising prevalence of various chronic diseases in the country increase the demand for healthcare services. Moreover, government initiatives to improve the healthcare infrastructure and the growing number of healthcare projects in the country are expected to increase healthcare service adoption.

Kuwait and Qatar are expected to witness considerable growth in the coming years due to mandatory health insurance coverage and a robust healthcare project pipeline. Furthermore, a growing number of home healthcare service providers is anticipated to boost these countries' revenue in the segment. 

• In August 2021, Royale Home Health, a subsidiary of the Royale Hayat Hospital in Kuwait City, launched home healthcare services for remote hospitality services and holistic clinical care.

List of Key Companies in MENA Healthcare Services Market

In 2023, Domestic Players such as DR SULAIMAN AL HABIB & Mouwasat Dammam Dominated the Market Due to the Presence of a Large Chain of Hospitals and Clinics

The MENA healthcare services market is highly fragmented. The key healthcare providers in the region include a mix of public and private entities that have crucial roles in the healthcare provision. Some of the key players in the market are DR SULAIMAN AL HABIB and Mouwasat Dammamin in Saudi Arabia, Aster DM Healthcare & Middle East Healthcare Company, Saudi German Health in UAE, Cleopatra Hospitals Group and Integrated Diagnostics Holding in Egypt.

The key players in Saudi Arabia, UAE, Egypt, and Kuwait, have a large chain of hospitals and clinics within the region. For instance, DR SULAIMAN AL HABIB, which is one of the key players in Saudi Arabia has 20 hospitals in the country. Additionally, key players such as Dallah Healthcare are focusing on the incorporation of advanced medical facilities and digital technologies through collaborations to improve their healthcare provision. These factors are collectively improving these players’ market presence in the Middle East and North African countries.

LIST OF KEY COMPANIES PROFILED:

• DR SULAIMAN AL HABIB (Saudi Arabia)


• Aster DM Healthcare (UAE)


• Middle East Healthcare Company (Saudi German Health) (UAE)


• Burjeel Holdings (UAE)


• elaj group (Saudi Arabia)


• Mouwasat Dammam (Saudi Arabia)


• Cleopatra Hospitals Group (Egypt)


• Dallah Health (UAE)


• Integrated Diagnostics Holding (U.K.)


• Pure Health (UAE)

KEY INDUSTRY DEVELOPMENTS

• April 2024 - Cleopatra Hospitals Group's hospital, Al Shorouk Hospital, received General Authority for Healthcare Accreditation and Regulation (GAAR) accreditation. The hospital offers the highest standards of healthcare and safety.


• October 2023 - Aster DM Healthcare launched the Aster Royal Al Raffah Multispecialty Hospital in Muscat, Oman. It is a multispecialty hospital with a 175-bed multispecialty hospital in Muscat.


• October 2023 - DR SULAIMAN AL HABIB established a hospital project in the city of Tabuk, Saudi Arabia, in order to offer various services in different medical specialties.


• April 2023 - Dallah Health opened a new hospital in Riyadh in order to expand its geographical presence in Saudi Arabia.


• October 2022 - Integrated Diagnostics Holding signed a joint venture with Izhoor Holding Medical Company LLC ("Izhoor") and Al Makhbaryoun Al Arab LLC ("Biolab"). The aim was to launch a new diagnostic venture in Saudi Arabia.

REPORT COVERAGE

The MENA healthcare services market research report provides an in-depth analysis of the healthcare industry. It focuses on market segments, such as type of service, funding source, type of care, and facility type. Besides, it offers the market forecast in relation to the current market dynamics, the impact of COVID-19, and the latest market statistics. Additionally, the report consists the market share by various segments and the factors driving the market and the growth. The report also provides the competitive landscape of the market and key insights for overview of healthcare facilities, prevalence of diseases, key healthcare projects in the region.

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Report Scope & Segmentation