How to start a healthcare business in DHCC

The healthcare industry in Dubai is experiencing a remarkable evolution, transitioning from being a regional healthcare hub to a global destination for medical excellence. The city’s rapid urban development and growing expatriate population are increasing the demand for quality health care services, and the emergence of cutting-edge fields such as medical tourism, telemedicine, biotechnology and artificial intelligence are attracting an influx of international patients, creating lucrative new avenues of investment.

At the heart of this transformation is Dubai Healthcare City (DHCC), a dedicated medical free zone with 28 private and public sector hospitals and licensed professionals in over 150 specialities. It plays a pivotal role in fostering innovation, collaboration, and investment in these emerging sectors. Its state-of-the-art infrastructure, regulatory support and partnerships with international healthcare institutions are tailor-made for entrepreneurs looking to expand into the UAE and wider GCC markets and capture these opportunities.

This article looks at investment opportunities in the UAE’s healthcare market and the requirements and process for starting a healthcare business in DHCC.

Healthcare business opportunities in the UAE  

The UAE has one of the fastest growing healthcare industries in the world with healthcare spending per capita among the highest globally.

With the World Bank’s projection of the UAE’s population growing to nearly 11.1 million by 2030, along with an expected rise in the average life expectancy to 79.8 years, the healthcare sector in the UAE is poised for significant expansion.

The UAE’s drive for innovation and new technology has also resulted in significant investment and adoption of new healthcare models such as medical tourism, telemedicine, biotechnology and AI which are transforming the way patients receive medical treatment. Dubai is now 6^th in the Medical Tourism Association’s rankings thanks to significant government support and initiatives that streamline the entry of international patients, its strategic location at the crossroads of Europe, Asia, and Africa also makes it easily accessible to a huge patient base across continents.

Another key long-term focus of the UAE government has been to reduce reliance on imported pharmaceuticals and manufacture locally, opening up opportunities for international pharmaceutical brands to establish a base in the Emirates and for physicians and nurses to fill this demand.

Types of business licenses in DHCC

Healthcare companies have three main business types that are available in DHCC. These are:

• Free Zone Limited Liability Company (FZ-LLC): This structure is the most popular among foreign investors in the UAE. It typically requires a minimum number of shareholders and provides limited liability protection to its owners. This means that the personal assets of the members are typically shielded from the company’s debts and legal liabilities. If the LLC encounters financial problems or faces lawsuits, the members’ personal assets (such as homes or savings) are generally not at risk beyond their investment in the company.
• Branch of a UAE company: This is an extension of an existing UAE-based company. In this setup, the branch operates under the umbrella of the parent company, retaining the parent company’s legal identity. The branch’s activities are typically aligned with the core business operations of the parent company, with any diversification requiring approval from relevant authorities.
• Branch of a foreign company: A foreign branch is an extension of a foreign company’s operations within the DHCC free zone. Unlike a free zone establishment (FZE) or a free zone company (FZ LLC), a foreign branch does not have a separate legal identity from its parent company, which means the foreign parent company remains fully responsible for the branch’s operations and liabilities.

How to set up a healthcare business in DHCC

1. Select business premises: Choose a suitable business unit that aligns with your chosen activity. DHCC offers a variety of business premises tailored to the specific needs of healthcare and related businesses. These include:

• Clinic spaces
• Medical centres
• Hospital buildings
• Laboratory facilities
• Medical imaging centres
• Pharmacy units
• Rehabilitation centres
• Medical equipment showrooms
• Offices
• Research centres
• Retail spaces

2. Reservation agreement: This must be signed to secure your preferred unit in DHCC while you complete the necessary due diligence, obtain approvals, and finalise the legal and financial aspects of the lease or purchase.
3. Submit activity application: The application should be submitted to the Dubai Health Authority (DHA) via Masaar, a digital platform developed by Dubai Healthcare City Authority (DHCA) to streamline the business setup process.
4. Application review: The DHA will verify the documentation provided, ensuring compliance with all relevant laws and regulations and adherence to DHCC’s specific guidelines. Secondly, DHA representatives may conduct on-site inspections to assess the facility’s infrastructure and safety standards, verifying that it aligns with the intended healthcare services. Thirdly, a thorough clinical assessment is carried out, evaluating the qualifications and credentials of healthcare professionals who will be part of the facility. Subsequently, the DHA determines the appropriate licensing category based on the scope of services. After a comprehensive review, the DHA will either approve or reject the application. If rejected, the applicant will receive feedback on the deficiencies or issues that need to be addressed for reconsideration.
5. Sign lease agreement: Once licensing approval is given, you must sign the lease agreement to secure your chosen business premises.
6. Apply for commercial licence: For an FZ LLC, you’ll require the following documents:

• Business plan (only applicable for clinical activity)
• Board Resolution
• Details of proposed director, manager, legal representative and shareholders [Passport copy, residence permit/visitor’s visa page, a copy of Emirates ID (if applicable), NOC from the manager’s current employer (if applicable)].
• Shareholder details (if corporate person) – valid DED trade licence, MOA and AOA, copy of the DED commercial register, UBO details. (Initial approval usually takes 3-10 working days depending on the chosen activities and fulfilling all DHA requirements.)
• Submit professional licence and fit-out design to the DHA
• Clinical inspection: The DHA will carry out a clinical inspection before issuance of the clinical operation permit.

How can The Knightsbridge Group help? 

The Knightsbridge Group has over 20 years of experience in the domain of corporate structuring and wealth management. We have unparalleled knowledge of business practices and legal requirements in the UAE as well as an international network of contacts and a deep understanding of the needs of modern-day high net worth clients and international businesses.

We can simplify and expedite the process of starting a healthcare business in DHCC. We will offer comprehensive support in business setup, including handling legal procedures, licensing, and permits, and ensuring compliance with DHCC regulations and requirements. We can also assist in structuring the business, obtaining visas for staff, and liaising with government authorities on your behalf.

If you need help with this or any other immigration, financial or corporate structuring issue, please don’t hesitate to contact us on info@kbgroup.ae and we will be happy to help.