Women’s wellness and menstrual health are the key drivers of the femtech sector in the United Arab Emirates (UAE), a new report has found. But plenty of untapped opportunities – and challenges – remain.

According to Q4 2021 analysis released by FemTech Analytics – a subsidiary of the UK-based Deep Knowledge Group – e-commerce platforms targeting these two categories of women’s healthcare are at the forefront of the industry in the Gulf nation. An estimated 60% of all femtech businesses in the UAE focus on women’s wellness and menstrual health.

Some subsectors lack attention, however. The least prevalent femtech offerings in the UAE are mental health, and pelvic and uterine healthcare – currently making up only 3% of the country’s femtech market, the report demonstrated.

Meanwhile, the Middle East and North Africa’s (MENA) femtech businesses account for only 5.8% of the global market, with more than half of all MENA femtech companies based in Israel, followed by one-third in the UAE.

“While MENA’s overall share of the total number of femtech companies barely reaches 6%, the UAE is well-positioned to achieve exponential growth within the femtech industry, especially considering the number of UAE projects set to launch in the near future,” FemTech Analytics shared in a statement. “The UAE is actively prioritising women’s health by accelerating the growth of female technologies. By doing so, the country has demonstrated the potential to lead by example globally and regionally.”

THE LARGER CONTEXT

Femtech – a term reportedly coined by Ida Tin, founder of the menstrual cycle tracking app, Clue – is used to refer to software, diagnostics, products, and other services that use technology to focus on issues relating to women’s health.

The global femtech market size accounted for $40.2 billion in 2020, and is projected to be worth $79.4 billion by 2025.

In the UAE, femtech startups include Nabta Health, My Lily Box, and Lizzom.

WHY IT MATTERS

While the UAE is at the forefront of femtech growth in the Gulf region, challenges remain for entrepreneurs in the country as well as the rest of the MENA, the report stresses.

One particular challenge is funding.

For example, in 2020, investment in healthtech in the region grew by 280% to $72 million, reported Wamda, but with “none directed at femtech startups.”

A possible reason?

Most femtech startups in the UAE are founded and led by women, who “tend to receive less funding” than their male-led counterparts, the report explained.

“Given most investors in the wider MENA region are men, the lack of understanding of female healthcare needs makes them reluctant to invest in female-related products,” said FemTech Analytics. “Despite the increasing interest from governments, entrepreneurs and investors in recent years, the industry remains underestimated and brimming with potential.”

Julia Bondaruk, Senior Strategic Partnerships Manager for FemTech Analytics, UAE, added: “The femtech industry encompasses a wide range of business technologies aimed at empowering female founders and catering to women’s health and wellbeing.

“Although the industry emerged a few years ago, its challenges have been unresolved for decades.”

Two such brands at the forefront of wanting to solve challenges in the region are women’s health pharma company, Organon and the MENA accelerator, Flat6Labs. Earlier this month, the two announced the launch of a new femtech accelerator programme aimed at helping female-founded digital health startups. The accelerator, unveiled at an Expo 2020 Dubai event, promises to provide support to build products, test market fit, and improve business models.

ON THE RECORD

“The UAE [has] emerged as a global powerhouse of education, business and community for women, accelerating equality, diversity and inclusion across the public and private sectors,” said Kate Batz, Director of FemTech Analytics, US. “There is a constant growth of female representation in the UAE government and across industries nationwide.

“These socio-economic transformations are creating a solid foundation for femtech development and largely contributing to the nation’s prospects within the industry.”