Over the years, Dubai has successfully positioned itself as a regional healthcare hub, attracting many entrepreneurs and investors from around the world. The demand for high-quality healthcare services is rising due to the city’s fast urbanisation and expanding expat population. Innovative industries like medical tourism, telemedicine, biotechnology, and artificial intelligence are drawing in more foreign patients and opening up profitable new investment opportunities.
If you’re charting your entry into the healthcare sector and planning a healthcare business setup in Dubai, UAE, you’re in the right place! This guide will walk you through the essential steps of setting up a business in the sector.
Let’s get started:
Why Choose Dubai To Start A Healthcare Business?
Due to the government’s support, the system’s advanced infrastructure, and the fervent patient pursuit of medical recruitment agencies, Dubai’s healthcare facilities and services are entering an era of extraordinary development. Dubai offers excellent growth opportunities in almost all segments of healthcare. These crucial advantages are the main reasons why entrepreneurs should invest in the healthcare sector in Dubai:
- The healthcare industry is rapidly increasing in Dubai; therefore, the city intends to become a worldwide leader in medical tourism and business activities.
- The business climate attracts investors with hospitable laws and alluring tax benefits.
- Because there is a growing need for healthcare professionals, nurses, and health support workers, the healthcare industry needs additional professionals.
The growing demand for skilled medical professionals to lead healthcare staffing and recruitment firms is driving the growth of care organizations.
Healthcare Sector Market Growth and Potential
- Expansion of Healthcare Infrastructure: Dubai’s healthcare infrastructure increased from 3,431 to 4,922 between 2019 and 2023.
- Workforce Development: The healthcare market placed a high priority on human resources, as evidenced by the growth of its workforce from 39,548 in 2019 to 58,788 in 2023.
- Economic Contribution: The sector’s economic importance was shown in 2021 when Dubai Healthcare City added AED 2.8 billion to Dubai’s GDP.
Innovation and Growth in Healthcare
- Digital Health Market: Estimated at USD 619.3 million in 2023, the UAE’s digital health market is expected to expand at a compound annual growth rate (CAGR) of 23.3% between 2024 and 2030.
- Telemedicine Growth: At a compound annual growth rate (CAGR) of 19.25%, the UAE’s telemedicine market is projected to reach USD 1.21 billion by 2029.
- mHealth Expansion: At a compound annual growth rate (CAGR) of 17.6%, the UAE’s mHealth industry is expected to increase from USD 186.3 million in 2024 to USD 858.8 million by 2033.
Also, Dubai has been ranked first in the Middle East and North Africa and sixth globally for Medical Tourism. Therefore, the healthcare industry in the UAE is booming! So, the healthcare industry is a sector in Dubai worth investing in.
Steps To Start Your Healthcare Business in Dubai, UAE
Step 1: Choosing Your Activity or Defining the Type of Healthcare
Choose the type of healthcare business you want to start first. Typical choices consist of:
- Multispecialty, dentistry, and other outpatient clinics
- Medical facilities
- Businesses that sell pharmaceuticals or medical supplies
- Diagnostic facilities and labs
- Senior care and home health care
- Wellness services, health consulting, or telemedicine
Advice: Determine your specialty based on your primary competencies and the market need in Dubai. This will help you stand out among others and setup in Dubai Healthcare City.
Step 2: Choosing the Business Jurisdiction
Mainland Dubai (via the Dubai Health Authority, or DHA) is one option. It’s ideal for:
- Companies looking to operate within the United Arab Emirates.
- Someone who needs a license from the Dubai Health Authority (DHA) and the Dubai Department of Economy and Tourism (DET)
Free Zone (Dubai Healthcare City, or DHCC, for example)
- Foreign ownership is permitted in full.
- Under the Dubai Healthcare City Authority’s (DHCA) jurisdiction.
- Perfect for clinics, research institutes, and foreign healthcare investors.
Step 3: Obtain Approvals, License in Dubai, and Reserve Your Trade Name
- Reserve a distinctive, pertinent trade name with the DET or Free Zone registrar, the relevant authority.
- Make sure the name accurately conveys the medical nature of the company and conforms with UAE naming regulations and your business environment.
- The healthcare consultancy of the business entity (LLC, single proprietorship, branch, etc.) should be registered.
- For setting up a healthcare activity of your choice, submit an application for initial approval.
By confirming that your project complies with Dubai’s approved healthcare activities, the initial clearance allows you to move forward with additional planning and documentation.
Step 4: Setting Up A Business Plan
To set up your healthcare business plan, you must think of:
- Type, business location, and scale of the facility
- Analysis of the market and the competitive environment
- A list of the medical services provided
- Plan for Staffing (Physicians, Healthcare Providers, Nurses, Administrative, Support Staff)
- Financial modeling and revenue projections
- Strategies for quality control, risk management, and compliance
- For banking and license applications, your company plan will be necessary.
Step 5: Choosing a Strategic Location
- For a healthcare company setup, choose a site that strikes a balance between zoning laws, possible collaborations, and patient accessibility.
- Make sure your plans adhere to minimum space, safety, and accessibility requirements before submitting your location and facility design to the DHA for approval for mainland facilities.
- Select from pre-approved office or clinical premises for DHCC (Dubai Healthcare City) or other Free Zones; some DHCC licenses allow you to operate virtually during your first year.
Step 6: Prepare the Documentation
- Certificate of Trade Name Reservation
- Your activity’s first letter of approval
- All of the managers, directors, and shareholders’ passports
- Ejari (tenancy) or a lease for your property
- A thorough business plan
- Memorandum of Association and Articles of Association (MoA/AoA) notarized
- Proof of professional qualifications and the manager’s resume
- Board decision (for branches)
- Evidence of adequate funds or bank statements
- Licensing Authorities Granting Licenses and Permits
- DHA grants staff and facility licenses to mainland healthcare organizations
- The basic commercial/business license is issued by DED/DET.
- Free Zone clinic/hospital licenses and professional permits are issued by the DHCC/DHCA.
- Federal health rules are supervised by the Ministry of Health and Prevention (MOHAP), mostly for hospitals or cross-emirate enterprises.
Step 7: Compliance and Inspection
Fit-Out and Design of Facilities
- For a seamless business setup in Dubai Healthcare, assemble the interiors using the authorized blueprint. Verify adherence to municipal regulations, infection control, accessibility, and hygiene.
- Obtain the necessary safety certifications, such as municipal and civil defense approvals.
Inspections Prior to Operation
- Before granting your final clinic or hospital license and operating permit, the DHA or DHCA will inspect the location.
- Establish medical waste management procedures and electronic medical record (EMR) systems.
Step 8: Recruitment of Licensed Healthcare Clinics and Professionals
- All medical professionals, including physicians, nurses, pharmacists, and allied health workers, must possess valid credentials and complete regulatory examinations or credentialing (Masaar for DHCA, Sheryan for DHA).
- All clinicians must register and acquire their health professional licenses.
- Complete documentation for an Emirates ID and a staff residency visa
Step 9: Create Corporate Bank Account and Register With Authorities
- For employees: Register with the Emirates ID Authority, handle work permits, and set up health insurance.
- For companies that qualify for VAT: If your annual turnover is over AED 350,000, you must register for VAT.
- To handle company finances, open a corporate bank account.
- For specific activities, additional registrations could be needed (e.g., MOHAP, municipal permits).
The Cost Of a Healthcare Business Setup In Dubai
The cost of establishing a healthcare business setup in Dubai, UAE, can vary. However, here’ a cost estimate:
- Cost Of A Business License: AED13,500 to AED50,000*
- Initial Approval: The first approval charge is AED 235*
- Registration Of A Trade Name: starting at AED735*
- Location and Insurance: Rent, fit-out, and insurance costs vary according to location and size.
- Certification and License: Professional certifications, licenses, and tests vary depending on the position.
To guarantee efficient operations, set aside money for working capital, required insurance, legal fees, consulting fees, and investments in healthcare providers.
Build a Healthcare Business in Dubai
For entrepreneurs who possess the proper combination of vision, strategy, and regulatory attention, starting a healthcare firm in Dubai can be a lucrative opportunity. Every step requires diligence, from selecting a business structure carefully to adhering to regulations and providing top-notch services. Dubai, with excellent UAE healthcare revenue, provides a flourishing environment for healthcare businesses seeking expansion and innovation, thanks to government assistance and a favorable investment climate. It creates the perfect opportunity for a thriving healthcare business in UAE.
Wish to Establish a Healthcare Business in Dubai? Xpert Advisory Has Got You Covered!
Xpert Advisory specialises in navigating and streamlining business formation processes, making it very convenient for any aspiring individual to set up a business venture in the GCC region. We specialise in streamlining the entire business setup process, right from navigating the complex paperwork to the final steps. Wish to discuss more? Contact us today to get started!
Frequently Asked Questions
Which Healthcare Facility License Are Essential For Launching A Healthcare Company In Dubai?
In addition to getting approval for business in DHCC (Dubai Healthcare City Authority), healthcare enterprises operating in Dubai need authorization from the Ministry of Health and Prevention (MOHAP) and the Dubai Health Authority (DHA).
Is It Possible For A Foreigner To Own A Healthcare Company In Dubai?
When starting a business in Dubai Healthcare City (DHCC) free zone authority, foreigners have the chance to become full proprietors. For their formation, mainland healthcare business operations require a local partner.
How To Get a License To Practice Medicine In Dubai?
You must apply for a license from the Dubai Health Authority (DHA) to practice medicine in Dubai. Among other requirements, this entails a multi-step process that includes choosing a business name, self-assessment, primary source verification (PSV), and a computer-based test (CBT).
