Abu Dhabi sovereign wealth fund Mubadala and artificial intelligence company G42 will merge their healthcare units to form a company that will focus on using future technology to revolutionise the industry across the region.
The combined entity, which aims to operate at the forefront of medical research and innovation, is intended to become a vertically integrated healthcare business by delivering pioneering clinical solutions to help solve global critical health and diagnostic challenges, the companies said on Thursday.
Hasan Al Nowais, chief executive of Mubadala Health, has been appointed to lead the new entity in the same role.
“The new company represents a truly integrated healthcare ecosystem where research, technology, AI and genomics are combined with world-class care to optimise clinical outcomes,” Mr Al Nowais said.
“We are committed to ensuring that our exceptional team of physicians and caregivers have access to pioneering medical technologies and deliver unparalleled care to patients.”
The Covid-19 pandemic proved the resilience of the UAE through its sweeping health protocols and vaccine mandate, and Abu Dhabi is charting a path to become a leader in global health care.
The UAE capital has ambitions to capture the world's first population-wide genetic library, pioneer connected health and build on previous collaborations with pharmaceutical companies Pfizer and AstraZeneca in medical research.
Last week, Abu Dhabi unveiled a new funding programme to support research and innovation to fight life-threatening diseases, offered to those who carry out clinical research projects in critical health areas.
Meanwhile, demand for digital healthcare services continues to grow, with venture capital companies tapping into this by boosting their investments in start-ups, especially those that provide diagnostics, testing and other support services.
The global digital health market was valued at $175.6 billion in 2021 and is expected to grow at a compound annual rate of about 28 per cent through 2030, according to Grand View Research.
Mubadala Health and G42 Healthcare already cater to hundreds of thousands of patients annually, and the new entity will tap into the reach of the combined network, the companies said.
This will include state-of-the-art healthcare centres and digital platforms, which will raise the level of patient services across the continuum of care, it said.
“We aim to build on the respective strengths of G42 Healthcare and Mubadala Health to unlock healthcare super-intelligence and facilitate global healthcare expansion,” said Peng Xiao, group chief executive of G42.
“Our capabilities and experience in leveraging data and AI will allow us to continue transforming the traditional healthcare ecosystem to deliver top-notch patient care, fuelled by the latest breakthrough research, all in world-class facilities.”
The companies have already been active in a number of initiatives in the field of health care.
In August, G42, backed by Mubadala, set up a $10bn fund that will invest in emerging technology in high-growth regions around the globe as it looks to expand its portfolio of investments.
In October last year, Mubadala Health and G42 Healthcare signed an agreement to boost collaboration and find innovative solutions to treat chronic diseases.
“The future of healthcare lies in the incredible, fast-moving advances being made in technology,” said Waleed Al Muhairi, chairman of Mubadala Health and deputy chief executive of Mubadala.
“Mubadala has invested in the highest standard of patient care for the residents of the UAE across a number of specialities. We now seek to take patient care to the next level, into a new era of precision and personalised medicine.”
The new entity will consider opportunities for international expansion and new partnerships, as well as focus on collaborating with leading researchers and pharmaceutical and HealthTech ecosystems, the companies said.
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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South Korea
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Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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