By Syed Hussain, Chair of Digital Health Committee, Mecomed
Healthcare systems across the Middle East and Africa (MEA) are undergoing rapid transformation, with medical technology (MedTech) and artificial intelligence (AI) at the forefront of this evolution. These advancements are reshaping how healthcare is delivered, improving patient outcomes, and driving efficiency across the sector. With increasing investments in health technology and innovation, MEA countries are guaranteed to see significant enhancement in the quality of care over the next decade.
MedTech is a key pillar in the healthcare systems of the MEA region, enabling faster, more accurate diagnoses through advanced tools and wearable devices. The UAE and Saudi Arabia are leading investments in MedTech to build resilient healthcare systems. For example, in the UAE alone, the MedTech market is projected to reach US$ 3.02 billion by 2024, with medical devices making up US$ 2.61 billion. With an expected annual growth rate of 8.59% (CAGR 2024-2029), the market could hit US$ 4.56 billion by 2029, demonstrating the region’s rapid adoption of technology in order to improve healthcare outcomes.
AI is playing a transformative role in healthcare, with applications ranging from diagnostics to predictive analytics. AI-powered systems are able to process complex medical data with remarkable speed, enabling healthcare professionals to make faster and more accurate decisions. Generative AI, in particular, holds vast potential to unlock up to $1 trillion in unrealized value across the industry.
According to a PwC report, AI is transforming drug research and development by reducing both costs and time to market. Traditionally, bringing a drug from the lab to patients takes an average of 12 years and costs around $359 million, with only one in 5,000 drugs reaching human testing and approval. By leveraging AI in drug discovery and repurposing, the healthcare industry could accelerate these processes, making treatments more accessible and cost-effective.
The use of AI in MEA healthcare is not just limited to diagnostics; it is also enhancing patient care through telemedicine, robotic surgery, and personalized medicine. For instance, in Africa, AI is being deployed in predictive analytics to combat infectious diseases like malaria, using data to predict outbreaks and deploy resources effectively. Meanwhile, in the Middle East, AI is contributing to advancements in robotic surgeries, enabling more precise and less invasive procedures.
The combined digital health market of the two largest GCC countries could potentially reach U.S.$4 billion by 2026, according to McKinsey & Company. The UAE is already home to around 257 HealthTech startups, as reported by the UAE’s Ministry of Economy. This rapid growth highlights the region's drive toward digital health innovation, spurred further by government investments such as Saudi Arabia’s Public Investment Fund (PIF) backing Babylon Health, a telemedicine company offering virtual consultations, symptom-checking services, and AI-powered chronic condition management.
In the Middle East, up to 10% of outpatient consultations have transitioned to virtual platforms, according to Kearney, underscoring the shift to remote care. Digital health solutions have empowered healthcare providers to remotely monitor patients, reduce hospital readmissions, and improve the management of chronic diseases. In Africa, mobile health apps are essential for delivering care to remote and underserved regions, ensuring timely access to health services.
The telemedicine market in the Middle East and Africa is projected to grow from U.S.$2.3 billion in 2020 to U.S.$8.5 billion by 2028, reflecting the region's strong embrace of virtual care solutions. This momentum is likely to continue as governments and healthcare providers seek to enhance access, efficiency, and quality of care through digital innovations.
As MedTech and AI continue to reshape healthcare in the Middle East and Africa, the potential for growth is immense. Governments across the region are investing heavily in these technologies to build resilient healthcare systems that can withstand future challenges. A testament to this growth is the massive pipeline of 161 healthcare projects across the GCC, with a combined value of US$53.2 billion, according to Alpen Capital. With a focus on innovation and collaboration, MEA is on the path to building a more efficient, accessible, and patient-centric healthcare system.