The healthcare industry in the UAE has grown significantly over the last decade and was one of the country's fastest growing sectors, led by Dubai and Abu Dhabi. Following the COVID-19 pandemic, mergers and acquisitions (M&A) activity in the UAE healthcare sector is increasing, with investment firms showing interest in health technology and medical technology assets. In the short to medium term, M&A activity is expected to focus on health technology tools, telehealth, medical technology, and partnerships around value-based care. Investment funds have boosted M&A deal activity since 2021, and more transformative deals are expected going forward, with investment funds playing a bigger role in health technology assets. As many healthcare

1. M&A demand is expected to flourish in
UAE’s Healthcare
The healthcare industry in the UAE has grown dramatically over the last
decade, as indicated by the increasing number of hospitals and clinics around
the nation. The emirates of Dubai and Abu Dhabi are leading the way in the
sector, which, without a doubt, is one of the UAE’s most rapidly rising sectors.
The pandemic put a strain on every element of the industry, but in order to
survive and prosper, the UAE’s healthcare organisations devised a well-
thought-out strategy for minimising disruption, and it successfully halted the
pandemic’s spread to a large extent.
Following COVID-19, Mergers & Acquisition (M&A) operations in the UAE’s
health industry is turning the tide with investment firms indicating potential in
healthtech and medtech assets. As corporations re-evaluate their business
strategy and exhibit healthcare sector investment as ‘caution,’ the current
trend shows a move from provider consolidation to strategic asset acquisition.
In the short to medium run, the following regions are expected to be “M&A
magnets” in the UAE healthcare industry.
 To resolve crucial challenges and increase employee performance and process
optimization, suppliers will constantly find value in implementing HealthTech tools
like artificial intelligence (AI), analytics, and cloud technologies.
 Telehealth constitutes a modest aspect of most healthcare solutions, although it
has been gaining popularity during the COVID-19 outbreak. Providers will try to
discover specific areas where telehealth may be used to supplement current
capabilities.
 Providers will strive to incorporate complicated MedTech services as it evolves
from experimental to the mainstream, in order to improve patient care. To
enhance results, leading institutions are expected to construct their value offer
around a series of good physicians and comprehensive MedTech assistance.

2.  Relevant partners are expected to keep working on standardisation with the goal
of compensating for value-based treatment.
Between 2016 and 2021, Provider acquisitions or mergers contributed to 81
percent of agreements; however, after COVID-19, there has been an upsurge
in HealthTech/MedTech and Pharma transactions. Investment funds boosted
deal activity in the first half of 2021, responsible for 58 percent of all deals,
compared to 41 percent between 2016 and 2020. Several investment funds
have been involved in the healthcare industry as a result of the COVID-19
impact, motivated by the industry’s stable profitability and long-term growth
outlook.
It is expected that in the near future, more decisive transactions will dominate
healthcare M&A, with sustained growth in tech-enabled health sector. It is
expected that investment funds will play an even more vital factor by taking
dominant positions in HealthTech assets. With the basic pillars of the field
remaining robust, the forecast for transactions in the UAE remains favourable.
As a result of many enterprises in this health sector establishing their
foundation in Dubai, the need for business valuation and due diligence
services in this sector is becoming more critical. This shift in attention and
increased activity in this sector throughout the world, the requirement and
occurrences of value are on the rise.
Financial reporting, acquiring and selling a firm, mergers and acquisitions, and
spin-offs are all reasons for business valuations. HLB HAMT has done several
such valuations and due diligence exercises for transactions in Dubai, Abu
Dhabi and other emirates of the UAE. A business valuation and due diligence
performed by a professional firm will highlight areas of opportunity in
valuations where you can increase profits and optimize your costs, as well as
highlight risks using an exhaustive due diligence process.

3. M&A demand is expected to flourish in
UAE’s Healthcare
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