HealthTech in the GCC Countries: Focus on Infrastructure and Export Capabilities
The GCC countries are focused on diversifying their economies and reducing dependence on oil revenues. This has led to a strong drive for innovation and interest in developing local capabilities and infrastructure. This is opening opportunities for startups in these areas, those who are willing to commit long-term.
The Gulf Cooperation Council (GCC) brings together six Arab countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. When one reads about the GCC countries, there’s nothing but the impression of prosperity: high investments, determination, and enthusiasm in tech-supported healthcare. The spending on healthcare by the GCC governments is on an astronomical rise. From a regionwide US$2.4 billion in 2016, it rose to more than US$30 billion in 2021 and is projected to surpass US$104 billion this year, according to a report from the UAE Ministry of Economy.
In this episode, Pilar Fernandez Hermida - International Go-To-Market Expert with 20+ years of experience launching sales & partner ecosystem strategies, talks about:
The potential of the Middle East and MENA region for healthtech companies, the culture in the Middle East,
How to interpret different style of communication here, what are the common entrepreneurial misconceptions, and where to find opportunities.
Pilar says that the entrepreneurial spirit here is 10-times as strong as in the US, and that biotech and drug development are the next thing to watch for in the region.
Here is a short summary.
Regional Potential
Digitalization and Innovation Drive: There is a strong push towards healthcare digitalization, telemedicine and virtual care. Virtual hospital SEHA in Saudi Arabia has already served over 400,000 patients.
Cultural Insights for Entrepreneurs: Long-Term Commitment
Entrepreneurs should demonstrate a commitment to long-term impact and relationship-building rather than short-term gains. For example, in the region, hospitality is often mistaken for business interest, so entrepreneurs need to distinguish genuine business opportunities from polite interactions.
Failure Perception: According to Pilar Fernandez Hermida, failure is frowned upon culturally, which impacts the risk-taking behavior necessary for innovation. This can lead to a preference for proven business models over groundbreaking innovations. Business Environment: Public-Private Partnerships (PPPs): The region offers significant opportunities through PPPs, especially for infrastructure and healthcare projects.
Market Differences Within GCC: Each country and even different Emirates within a country have distinct regulatory and business landscapes, requiring tailored approaches for market entry and operations.
Solutions with High Success Potential: Infrastructure Enablers
Given the substantial investment in building healthcare infrastructure, solutions that support this growth, such as tech enablers for drug discovery and healthcare service delivery platforms, have high potential.
Digital and Biotech Integration: Solutions that integrate digital health with biotech, especially those that contribute to personalized medicine, drug manufacturing, and healthcare services delivery, are likely to succeed.
Additional Considerations: Understanding Local Needs
Entrepreneurs must understand and cater to local healthcare needs, such as addressing prevalent diseases like diabetes or cardiovascular conditions, which are common in the region.
Given varying levels of digital adoption across the region, solutions must be adaptable to different stages of digital maturity in healthcare systems.
Tune in to the full episode!