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MedTech Outlook | Wednesday, March 29, 2023
In the adoption of technology, the Middle East region has been progressive. The health-tech startup ecosystem in the MENA region is now worth over $1.5 billion.
FREMONT, CA: International and domestic investors have currently raised 930 million USD. And this number will continue to go up in the coming years. With so much money coming in, technological advancements will keep the healthcare sector growing.
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When it comes to venture capital investment, telemedicine rules: Over the past two years, venture capitalists have given telemedicine the most attention. To expand the market penetration in remote places, telemedicine service providers have started giving a 360-degree solution to serve patients. Essal, a health tech startup in the MENA region, raised 1.7 million USD in order to increase its workforce and invest in product development as it looks to reach more people in the region. The company offers a platform that allows users to connect with consultants and seek answers to their concerns.
In the Middle East, the deployment of AI is gaining speed: AI-aided Super agents can 'engage to win' customers with 63 percent more success. Agents empowered by AI can increase productivity and boost sales performance, like the customer’s email, appointment history, or why they last reached out. Health experts are working on AI-based solutions to improve the patient experience and their operational efficiency and productivity. AI’s entire contribution to the public sector in the Gulf region would be 59 billion USD by 2030, encompassing health and education.
Increasing focus on digital infrastructure in the healthcare sector: The GCC region invested the most in healthcare infrastructure, which has a significant growth in the number of hospitals and beds there. Yearly investment in healthcare digital infrastructure is anticipated to grow from $0.5B to $1.2B in the next two years, a 10 percent to 20 percent jump compared with the previous years of 3 percent to 4 percent. This will create numerous opportunities for startups to invest in digital solutions in the healthcare industry.
In the past two years, venture capitalists have developed a keen interest in the Middle East. To enhance the patient experience, the Gulf region's government is likewise making significant investments in technology. The MENA region's MedTech innovation will be fueled by a $250 million fund, which will also examine investment opportunities in the cloud- and AI-enhanced medical devices. According to recent research, 74 percent of firms in the region aimed to invest more than $200,000 last year, which will lead to an increase in investment in CX technology. With such substantial investments in the health tech sector, the innovation of digital healthcare will accelerate, giving start-ups more opportunities to develop and enhance patient experiences.
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