Alkhair Capital launches a $100M fund for healthtech investments

Dubai-based Alkhair Capital, a leading asset management and investment banking firm, has unveiled a $100 million fund dedicated to investments in healthcare technology ventures, particularly those harnessing the power of AI.

Investment rationale and strategy

As noted, the fund's primary focus is on companies leveraging advanced AI to enhance healthcare services.

The healthcare sector, particularly in the GCC region, has been witnessing significant growth, driven by an increasing senior citizen population, rising life expectancy, and a surge in lifestyle diseases. However, challenges like inadequate infrastructure and liquidity constraints have also emerged — affecting the profitability and expansion of medical facilities.

To address these challenges, Alkhair Capital has strategically partnered with Klaim Technologies, a FinTech firm known for its AI-driven solutions for insurance claims assessment. This collaboration is set to streamline and accelerate the insurance claims process, ensuring that healthcare facilities receive timely payments.

Regarding investment distribution, Alkhair plans to allocate its funds over short to medium-term durations, striking a balance between liquidity needs and the pursuit of favorable returns.

On the record

"The healthcare sector is experiencing remarkable growth, propelled by the region's expanding senior citizen population, rising life expectancy, and a surge in lifestyle diseases," said Naveed Aurakzai, CEO of Alkhair Capital Dubai.

"We launched this investment fund with the primary aim of addressing one of the most formidable challenges within the sector, estimated to encompass $100 billion in spending within the GCC," he added.

The context

The healthcare sector in the GCC and the broader MENA region has recently undergone significant transformation and growth. This growth has been influenced by events such as the COVID-19 pandemic and the subsequent influx of investments into the industry. Additionally, policy reforms, especially the introduction of mandatory health insurance in the GCC, have played a pivotal role in the sector's expansion. Current data indicates that the UAE health sector has approximately $1.2 billion in medical claims in processing. Moreover, healthcare facilities in the region face an average delay of 112 days to receive 90% of their payments from insurance companies.

Projections suggest that the healthcare expenditure in the GCC could reach $135.5 billion by 2027, growing at an annual rate of 5.4% from 2022. In a global context, health tech companies received funding amounting to $29.1 billion in 2021.

Alkhair Capital, established in 2009 in Saudi Arabia, offers a diverse range of services, including debt and equity capital market transactions and mergers and acquisitions advisory. The company expanded its footprint by inaugurating an office in Dubai International Financial Centre (DIFC) in 2014. They manage various funds, such as the Alkhair Capital Sukuk Plus Fund and the Alkhair Murabaha Fund.