Slow GDP growth in UAE to hit medical device market

The medical device market will be constrained by the slowdown in economic growth.

As the slowdown in economic growth in UAE in 2023 continues, Fitch Solutions warned that it may pose headwinds in the medical device market in the near term.

“We maintain our CAGR forecast and project that the medical device market will expand by a CAGR of 6.3% over 2022-2027, which will take the value to AED5.2bn (USD1.4bn) by 2027, with the local currency pegged to the US dollar,” read the study.

The 6.3% prediction is a downward revision from its previous forecast of 6.9% on CAGR.

The declining hydrocarbon revenues as oil production and prices continued to fall was the reason behind the economic growth downgrade. 

In its budget, key areas of spending include enhancing access to health, promoting innovation and integrating artificial intelligence (AI) in the health system. 

“We believe continued investments in the above areas will drive demand for medical devices in the country in the near to medium term,” read Fitch Solutions’ study.