Health-tech investments are seeing notable growth worldwide, especially in the Gulf region, driven by government support and incentives for investment in the sector and high demand for deploying technology and linking its various branches, particularly after the world entered the COVID-19 pandemic and sought to leverage lessons learned and prepare for any future pandemic.
According to forecasts announced at the Precision Medicine Summit and Conference held in Dubai,the health-tech market in the Gulf Cooperation Council countries will see growth in digital infrastructure investments in the coming period, markedly higher than in previous years. Surveys indicate investment in the sector will grow from USD 0.5 billion to USD 1.2 billion over the next two years.
This represents an increase of 10%–20% compared to the previous two years, which saw annual investment growth of 3%–4%. Therefore, investments in the health-tech sector, including care and health insurance platforms and their various branches and startups, make the region a real opportunity for expansion and growth in the Middle East and North Africa.
In the same context, Dealroom.co noted that since 2016, the health-tech sector in the Middle East and North Africa has achieved vertical growth, the highest in total value of startups in the sector, forming an ecosystem valued at
billions of dollars today.
The value of health-tech startups in the region today is estimated at USD 1.5 billion, representing a 22-fold increase from 2016. These companies have received over USD 200 million in venture capital since then.
In line with these forecasts, health-tech branches such as digital therapeutics, remote patient monitoring, and the use of AI tools will be key areas of focus and investment, especially in hospitals and health centers in the region.
Health-tech startups in the region attract investors from around the world
Health-tech startups across the Arab region have seen a shift in investor interest; Al-Tibbi platform managed to close a funding round of USD 44 million, the largest round in this sector in the region; Jordanian Eon Dental closed a round worth USD 26 million,.
preceded by companies such as Saudi HealTec closing its funding round, as well as Bypa-ss the Egyptian company and its counterpart Consultation, alongside platforms like UAE-based STEPPI,and Saudi Curea, which raised SAR 15 million,and other startups in this booming sector. Current figures and future growth forecasts indicate its capacity to host more companies amid market demand, meaning new health-tech startups will emerge aiming to fill gaps through diverse specializations, forming an integrated ecosystem that will help attract more investments to the sector and the region and close new record funding rounds.
