Chinese Medical Device Companies Surge in the Middle East Amid Strategic Export Shift

The Focus of China’s Medical Device Exports Is Quietly Shifting.

According to data from China Customs, in 2023, China’s medical device exports to the U.S. market decreased by 19.2% year-on-year, those to the Japanese market fell by 26.2%, those to the German market dropped by 40.8%, and those to the UK market declined by 46.1%...

In the first quarter of 2024, against the backdrop of a significant decline in the previous year, the export value of China’s medical devices to mature markets such as Europe, the United States, and Japan continued to show a trend of slowing growth. Specifically, the export value of China’s medical devices to the Japanese market amounted to USD 829 million, representing a year-on-year decrease of 9.56%; while the export value to the U.S. market reached USD 3.167 billion, with a slight year-on-year increase of 1.18%. This indicates that over the past two years,Exports of Chinese medical devices to developed markets such as Europe, the United States, and Japan have declined significantly, with growth slowing down.。

On the other hand,China's medical device exports to emerging markets such as the Middle East are growing rapidly.The United Arab Emirates, Turkey, and Saudi Arabia are the three largest medical device markets in the Middle East. In the first quarter of 2024, China’s medical device exports to the UAE increased by 23.41% year-on-year; exports to Turkey rose by 9.68% year-on-year; and exports to Saudi Arabia grew by 8.34% year-on-year.

Notably, in the first quarter of 2024, the United Arab Emirates, Turkey, and Saudi Arabia all ranked among the top ten in China’s medical device export growth rate rankings (for markets exceeding US$100 million), placing first, seventh, and eighth, respectively.

The surge in exports to the Middle East indicates that an increasing number of medical device companies have identified the region as a key destination for international expansion, and that a cohort of these enterprises has successfully established a solid foothold in the market. Which companies are accelerating their entry into the Middle East? Which specific product categories are performing better in this region? What strategies should Chinese companies adopt when expanding into the Middle Eastern market?

In the Middle East market, medical imaging is one of the niche sectors where Chinese companies have successfully struck gold.。

For example, multiple medical imaging products from United Imaging have been deployed in top-tier hospitals across the Middle East, such as the Al Tahra Imaging Center, one of Egypt’s four major medical imaging centers, and the American Hospital Dubai, a leading high-end private general hospital in the UAE and the broader Middle East region.

Earlier this year, UAE-based medical technology company Prepaire Labs purchased a high-end PET/CT system from United Imaging: the uEXPLORER Total-body PET/CT (the world’s first total-body dynamic PET/CT). This has become the first total-body PET/CT scanner in the Middle East.

Furthermore, United Imaging has established partnerships with numerous high-end medical institutions in the Middle East, including Al Mana Healthcare Group, a large healthcare group in Saudi Arabia; NBCC, the first medical institution in Saudi Arabia specializing in the diagnosis and treatment of blood disorders and oncology; King Hussein Cancer Center (KHCC), one of the top six cancer centers globally; American Hospital Dubai, a leading private hospital in the United Arab Emirates; and I-ONE Nuclear Medicine and Oncology Center, a premier oncology center in Saudi Arabia. The collaboration encompasses system installation, clinical research, and talent training.

Beyond United Imaging, Neusoft Medical has also supplied hundreds of large-scale medical devices to the region, covering more than 10 countries in the Middle East, including Algeria, Egypt, and the United Arab Emirates. Meanwhile, Mindray’s medical imaging products have successfully penetrated high-end hospitals such as NMC Royal Hospital, a premium private healthcare group in the UAE, and Hacettepe University Hospital, one of the top three university hospitals in Ankara, Turkey.

Moreover, domestic medical imaging manufacturers such as ShenTu Medical, Sonoscape Medical, and Shantou Ultrasound are also increasing their investments in the Middle East market. For instance, taking into account the dietary patterns and physical characteristics of the local population, ShenTu Medical launched its RAD(S) series dual-column DR products in the Middle East. These systems feature a table with a weight capacity of 300 kg and incorporate innovative and simplified procedures for weight-bearing knee imaging.

It is foreseeable that as more Chinese manufacturers gain a precise understanding of the Middle Eastern market, Chinese-made medical imaging equipment will significantly increase its market share in the region.

Another niche sector that Chinese companies have penetrated in the Middle East market is genetic testing.。

In 2019, the United Arab Emirates (UAE) announced the launch of its National Genome Program, aiming to leverage large-scale population genomic data to establish a national healthcare system for the Emirati people that is predictive, preventive, and personalized. Meanwhile, other Middle Eastern countries, including Saudi Arabia, Turkey, and Israel, have also initiated genome projects to conduct genetic sequencing on their citizens. Furthermore, nations such as the UAE, Saudi Arabia, and Israel are advancing precision diagnosis and treatment, which are closely linked to genetic testing.

Undoubtedly, the Middle East has nurtured a vast market for genetic testing. BGI Group was among the first Chinese genomics companies to venture into this market. In 2019, with the launch of the UAE Genome Program, BGI from China participated in its implementation and delivery. Since then, BGI-affiliated enterprises have significantly expanded their business operations in the Middle East.

For example, BGI established a joint venture with Tibbiyah Holding, a subsidiary of Saudi Arabia’s Al Faisaliah Group, to create an independent clinical laboratory named “Genalive,” and participated in the development of the “BGI-ICBA Joint Laboratory for Desert Life.” These initiatives have introduced technologies such as non-invasive prenatal genetic testing, carrier screening for monogenic genetic disorders, newborn disease screening, hereditary cancer genetic testing, and infectious disease testing to the Middle East market.

Additionally, BGI has entered into a partnership with NRL, the largest group of College of American Pathologists (CAP)-accredited laboratories in the Middle East, to collaborate on non-invasive prenatal testing (NIPT) technologies, aiming to provide world-leading genetic testing services to the region. Reportedly, NRL operates three proprietary laboratories and manages the laboratories of several large private hospitals, as well as multiple healthcare institutions in the United Arab Emirates, including Cleveland Clinic Abu Dhabi and the Imperial College London Diabetes Centre.

In 2024, BGI continued its rapid expansion in the Middle East market. At the beginning of the year, UAE-based healthcare technology company Prepaire Labs directly purchased MGI’s DNBSEQ-T20×2 (hereinafter referred to as “T20”) ultra-high-throughput sequencer for its “Super Sequencing Factory.” Meanwhile, MGI signed a memorandum of understanding with another UAE healthcare technology firm, Dante Labs, with both parties planning to establish a customer experience center in the Middle East region.

In addition to companies affiliated with BGI, Microread Genetics has also secured major contracts in the Middle East market. In 2021, Microread Genetics signed an innovative cooperation agreement with the Dubai Police General Headquarters in the United Arab Emirates to jointly develop a rapid Y-chromosome mutation detection kit. After nearly a year of effort, the collaborative kit has completed research and development and transitioned to production, officially named the “Microreader™ 26 RM-Yplex ID system”.

Berry Genomics and Yinzhen Genetics, among other enterprises, have also begun to expand into the Middle East market. In 2023, Berry Genomics partnered with Saudi Arabian company Ajlan & Bros Medical Company to establish a joint venture. Through this joint venture, Berry Genomics will introduce non-invasive prenatal testing (NIPT) and other genetic testing products to the Saudi Arabian and broader Middle Eastern markets. In the future, both parties will successively launch projects such as establishing local genetic testing laboratories.

In 2024, Microread Genetics signed a memorandum of understanding with Anwa BioSciences, a leading genomic sequencing company in Saudi Arabia. The two parties will collaborate to leverage CRISPR gene-editing technology for the treatment of genetic disorders, with their inaugural project focusing on sickle cell anemia. In the future, they will also engage in significant cooperation to expand into the Middle Eastern market.

As an increasing number of Chinese genetic testing companies enter the Middle East market, the export value of China-made genetic testing products and services to the region is expected to grow significantly.

Another market in the Middle East that has been penetrated by Chinese companies is IVD, and coincidentally, several domestic IVD companies achieved greater breakthroughs in 2023.

For example, in 2023, Abu Dhabi purchased a batch of intelligent laboratory equipment from Yihong Health to enhance the level of medical intelligence. Meanwhile, Yihong Health entered into a strategic partnership with the United Arab Emirates, preparing to establish an overseas subsidiary in Abu Dhabi, and engaged in in-depth cooperation with the Abu Dhabi Department of Health and multiple partner institutions in areas such as medical intelligence.

In the same year, Mindray’s IVD business secured over 450 new high-end customers in international markets, while more than 110 existing high-end customers purchased additional products from the company. Notably, Mindray partnered with a global chain laboratory based in the United Arab Emirates, becoming its exclusive supplier of hematology analyzers for Saudi Arabia, Qatar, Bahrain, and Oman. In 2023, Sheikh Khalifa Medical City, a top-tier hospital in Dubai, as well as teaching hospitals and large centralized public hospitals in Turkey and other countries, procured Mindray’s IVD products.

In addition, Sansure Biotech won bids for multiple major projects in the Middle East in 2023, facilitating rapid growth in local testing capabilities, while its localized production and services are also being accelerated. This year, Sansure Biotech signed a cooperation agreement with Saudi company Al-Arab Medical Laboratories, and both parties will engage in long-term, comprehensive collaboration in the precise diagnosis, treatment, and management of infectious diseases, public health prevention and control, as well as oncology and chronic diseases.

YHLO also achieved significant growth in the Middle East region in 2023. It is reported that YHLO installed over 684 new chemiluminescence immunoassay analyzers in overseas markets in 2023, representing a year-on-year increase of 500%. Notably, revenue growth was particularly strong in regions such as the Middle East.

It is worth noting that while North America and Western Europe remain the primary markets for in vitro diagnostics (IVD) globally, they have entered a phase of relative stability. In contrast, emerging markets represented by China, Russia, India, and the Middle East are experiencing rapid growth and offer substantial market opportunities. At present, domestic IVD companies still find it worthwhile to venture into the Middle Eastern market.

In addition to medical imaging, genetic testing, and in vitro diagnostics (IVD), medical device companies in other sectors have also made sporadic breakthroughs in the Middle East market. For instance, a major Turkish pharmaceutical company purchased two fully automated production lines for large-volume parenterals in flexible bags, along with supporting equipment, from Shinva Medical; Saudi Arabia’s TIJAN Group signed a business cooperation agreement with Weigao Group to distribute Weigao’s flagship products.

The Middle East refers to the region extending from the eastern and southern shores of the Mediterranean Sea to the Persian Gulf coast, encompassing most of West Asia (excluding Afghanistan), Egypt in Africa, and the South Caucasus region along Russia’s border. It comprises approximately 23 countries and territories, covers an area of more than 15 million square kilometers, and has a population of 490 million.

What Types of Products or Services Are Truly Preferred in the Middle East Market?

In the Middle East, Saudi Arabia, the United Arab Emirates, and Turkey are the three largest medical device markets. Currently, these markets are accelerating the adoption of digital health and telemedicine to enhance digitalization in the healthcare sector.

Taking Saudi Arabia as an example, the country’s healthcare sector is exploring digital health service solutions to address emerging challenges in the field. For instance, the Saudi government previously allocated 167 billion riyals (approximately $44.5 billion) to support hospital privatization, enhance medical education, and digitize patient medical records. It has also issued supportive policies to promote the development of e-health platforms, including electronic medical records, imaging data platforms, radiology information systems, laboratory data systems, computer-aided diagnosis, artificial intelligence, and remote nursing and healthcare services.

In this context,Highly Digitalized Medical Products Are Popular in the Middle EastFor example, Mindray’s medical imaging equipment, integrated with “Resonance Cloud++,” has gained favor among many high-end hospitals in the Middle East, and its “Resonance Cloud++” has already been put to use in countries such as Saudi Arabia.

It is reported that Mindray’s “Resona Cloud++” integrates new technologies such as artificial intelligence, the Internet of Medical Things (IoMT), 5G, and cloud computing. It provides 5G smart ecosystem access terminals, an obstetrics cloud AI quality control solution, and a cloud AI-assisted teaching solution, thereby expanding the application boundaries of ultrasound equipment and meeting the imaging connectivity needs of diverse users.

Among these, the 5G smart ecosystem terminal delivers real-time remote imaging experiences to users through its mobile, portable, and plug-and-play design. The Obstetrics Cloud AI Quality Control Solution leverages cloud-based intelligence to provide standardized scanning assistance and real-time image quality control, thereby enhancing the efficiency, consistency, and accuracy of quality control in prenatal screening ultrasound. Additionally, “RayCloud++” offers an innovative training model for local primary-care physicians through its professional telemedicine imaging training program.

For another example, MicroTech Medical secured multiple partnerships with several collaborators in the Middle East at an exhibition, covering diabetes monitoring systems and digital healthcare solutions.

In addition to digitalization,The Middle East market is also pursuing high-end medical products.. It is understood that Saudi Arabia and the United Arab Emirates are both developed countries with strong consumer spending power and highly advanced medical tourism sectors, thereby imposing extremely high demands on medical technology and healthcare services. Meanwhile, in the past two years, both Saudi Arabia and the UAE have been accelerating the construction of public health infrastructure to enhance the quality of healthcare services.

In this context,High-End Medical Devices Gain Popularity in Saudi Arabia and UAE MarketsFor example, Neusoft Medical focuses on selling high-end products in the Middle East based on local market demand, such as high-end medical imaging equipment including the NeuViz Epoch CT, NeuAngio 30C DSA, and NeuWise PET/CT.

From the buyer’s perspective, UAE-based health-tech company Prepaire Labs successively procured United Imaging’s high-end product uEXPLORER and MGI Tech’s ultra-high-throughput sequencer DNBSEQ-T20×2 (hereinafter referred to as “T20”) in February this year.

Reportedly, the uEXPLORER is the world’s first total-body dynamic PET/CT scanner, representing a true Total Body PET/CT system that enables whole-body scanning from head to toe in a single bed position. In terms of performance, the uEXPLORER offers nearly a 40-fold increase in sensitivity, reducing the conventional 20-minute scan time by a factor of 40. It can achieve whole-body imaging in as fast as 30 seconds and maintain clear imaging up to 9.5 half-lives post-radiotracer injection. Furthermore, it supports ultra-low-dose imaging with radiotracer doses reduced to 1/40–1/50 of standard levels.

The T20 is a high-end, ultra-high-throughput sequencer launched by MGI Tech, capable of completing up to 50,000 human whole-genome sequencing cases annually, setting a new global record for gene sequencer throughput. With a per-sample cost of less than $100, it achieves greater economies of scale. The T20 delivers a single-run throughput of 42 Tb (PE100) or 72 Tb (PE150), which is 4.5 to 7 times that of conventional ultra-high-throughput sequencers.

It is worth noting that as one of the three major medical device markets in the Middle East, Turkey differs from Saudi Arabia and the UAE in its market demand, showing a stronger preference for cost-effective products.

Finally,The Middle East market has high demands for localized services.On December 24, 2023, Saudi Arabia’s localization requirements (Saudization rates) for sales, procurement, and project management positions officially took effect: the localization rate for healthcare professionals is 60%, for medical device engineering and technical specialties it is 30%, and for medical device sales and introduction specialties it is 40%. Additionally, countries such as the United Arab Emirates, Qatar, Kuwait, Oman, Bahrain, and Egypt have all issued policies to encourage local manufacturing.

Against this backdrop, Chinese medical device companies such as Neusoft Medical, Snibe, Sansure Biotech, Mindray, and United Imaging have begun to strengthen their localized presence in the Middle East market. Notably, Neusoft Medical has established a service center, logistics hub, and spare parts warehouse in Dubai, covering functions including sales, service, logistics, training, and marketing, with a local staff ratio exceeding 90%. Snibe has set up a wholly-owned overseas subsidiary in Saudi Arabia and enhanced its localized operational capabilities by recruiting local employees and obtaining product distribution licenses.

Digitalization, Premiumization, and Localization: Chinese Medical Device Companies That Accurately Gauge Middle Eastern Market Demands Are Reaping Huge Profits. However, the path to global expansion is far from smooth. Chinese medical device companies entering the Middle East face many non-negligible risks, such as special local regulatory requirements, local employment quotas, and stringent ESG standards. Meanwhile, the Middle Eastern market imposes high requirements for compliance and data security, which companies eyeing this region must carefully address.

No two leaves in the world are identical, and latecomers cannot fully replicate the global expansion paths of their predecessors. In going global, each enterprise must carve out its own unique path based on the demands of target markets and its own product characteristics. The only advantage for latecomers is that they can draw on the experiences of pioneers to avoid unnecessary mistakes.