Abu Dhabi’s US$110 billion infrastructure-oriented state-owned investor, ADQ, is launching a healthcare platform – Pure Health – that is set to become the UAE’s biggest healthcare provider.

Pure Health marks the consolidation of several UAE healthcare assets in ADQ’s portfolio, including Abu Dhabi Health Services Company (SEHA), The National Health Insurance Company (Daman), Tamouh Healthcare, Yas Clinic Group and Abu Dhabi Stem Cell Center.

Global SWF estimates that the total value of the Pure Health platform is over US$5 billion. The portfolio represents a highly integrated provider, covering health insurance, hospitals, laboratories and medical supplies, which could be the basis for greater diversification – including into biotech and in other geographies. ADQ will be the largest shareholder in Pure Health; other shareholders include Alpha Dhabi Holding, International Holding Company (IHC), AH Capital and Ataa Financial Investments.

Healthcare sector acquisitions outside the UAE are not included in the Pure Health platform, such as last year’s acquisitions of Egypt’s Amoun Pharmaceutical Company and Switzerland’s Acino.

ADQ’s pharma portfolio covers the full pharma value chain, including a stake in Indian biosimilars producer Biocon Biologics and online retailer PharmEasy, as well as UAE-based Pharmax and Union71. Its activities are complemented by Mubadala, which signed an agreement with G42 to establish a biopharmaceutical manufacturing campus in Abu Dhabi.

Global SWF’s recently released 2022 Annual Report declared healthcare the “industry of the year” after the value of investments in the sector by state-owned investors almost tripled to US$ 13.4 billion.

Faced with a range of inter-related sectors, from drug discovery to care provision, state-owned investors are likely to develop strategies to take advantage of changing demand dynamics. Healthcare will add impetus to either total portfolio management or creating integrated subsidiaries, that can deploy capital across asset classes to adapt to a rapidly evolving context that requires multiple strategies, from public equities and corporate debt to venture capital and real estate.

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