Category: 3. Business

Story Continues

The DCF model estimates TKO’s intrinsic value at $157.40 per share. Compared with the current market price, this implies the stock is trading at an 18.7% premium. In other words, it is 18.7% overvalued according to this approach.

Result: OVERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for TKO Group Holdings.

Our Discounted Cash Flow (DCF) analysis suggests TKO Group Holdings may be overvalued by 18.7%. Find undervalued stocks or create your own screener to find better value opportunities.

For profitable companies like TKO Group Holdings, the price-to-earnings (PE) ratio is a widely used and practical way to judge valuation. The PE ratio measures how much investors are willing to pay for each dollar of earnings, making it especially relevant for established companies with consistent profits.

What is considered a ‘fair’ PE ratio can vary depending on expectations for future growth and perceived risk. Generally, the faster a company’s earnings are likely to grow or the safer its profits, the higher the PE investors will be willing to pay. The opposite is true for companies facing uncertainty or low growth prospects.

At the moment, TKO Group Holdings trades at a PE ratio of 72.77x. That is noticeably higher than the Entertainment industry average of 27.32x and also above the company’s peer average of 61.11x. However, simply comparing to peers or the sector paints only part of the picture. This is where Simply Wall St’s “Fair Ratio” comes in, which is designed to provide a more tailored benchmark. By factoring in specifics like TKO’s earnings growth, profit margins, market cap, risk profile, and industry trends, the Fair Ratio helps define what a reasonable PE should be for the stock today.

The Fair Ratio for TKO Group Holdings is 36.13x. Compared to the company’s actual PE of 72.77x, the stock appears significantly overvalued on this metric, even after accounting for its growth potential and sector characteristics.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Earlier, we hinted that there’s an even smarter way to understand valuation, so let’s introduce you to Narratives. A Narrative is a simple but powerful tool that lets you connect your personal story and insights about a company directly to its financial forecast and fair value calculations, making your investment thesis more tangible and actionable.

With Narratives, you’re no longer just crunching numbers. You’re building a story about TKO Group Holdings, outlining your assumptions for future revenue, profit margins, and fair value, and seeing how these compare with the market. This feature is accessible to everyone on the Simply Wall St Community page, where millions of investors share and update their own perspectives.

Narratives help you decide when to buy, hold, or sell by instantly comparing your Fair Value estimate to the current stock price, making the decision-making process more grounded and flexible. As new developments, news, or earnings come in, Narratives update dynamically so your outlook stays current.

For example, some investors may see TKO Group Holdings’ fair value as high as $180 based on aggressive growth expectations, while others set it below $120 due to risk concerns. This showcases just how diverse and useful these perspectives can be.

Do you think there’s more to the story for TKO Group Holdings? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TKO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• Etsy has recently introduced a Seller Community Hub featuring AI-powered search tools and enhanced resources to support active sellers during the busy holiday shopping season.

• This new platform aims to deepen marketplace engagement and streamline seller experiences, potentially reinforcing Etsy’s competitive position among global e-commerce players.

• We’ll explore how the launch of the AI-powered Seller Community Hub could inform Etsy’s broader investment narrative and platform growth outlook.

We’ve found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

To be a shareholder in Etsy, you need to believe that the company can reignite Gross Merchandise Sales growth and revitalize buyer engagement, both of which are under pressure from several quarters of decline. The recent launch of the AI-powered Seller Community Hub supports marketplace innovation and seller retention for the holiday season, but does not meaningfully change the near-term catalyst, the upcoming earnings report, with market focus on margin trends and active buyer numbers, nor does it mitigate the primary risk of ongoing GMS and buyer attrition.

Among Etsy’s latest moves, the appointment of Rafe Colburn as Chief Product and Technology Officer comes at a pivotal point. This leadership change is especially relevant given heightened execution risks tied to AI, app adoption, and loyalty initiatives, which are central to management’s efforts to stabilize performance and restore buyers to the platform.

But as Shopify, Amazon, and others intensify the fight for digital marketplace dominance, investors should keep in mind the continuing impact of…

Read the full narrative on Etsy (it’s free!)

Etsy’s outlook suggests revenues of $3.2 billion and earnings of $377.3 million by 2028. This is based on annual revenue growth of 3.5% and an earnings increase of $213.3 million from the current $164.0 million.

Uncover how Etsy’s forecasts yield a $66.27 fair value, a 10% downside to its current price.

Six investors in the Simply Wall St Community placed Etsy’s fair value between US$66 and US$122 per share, showing a spread of nearly US$56 in expectations. Against this backdrop, many are weighing the company’s AI-powered personalization push as a potential engine for future conversion and revenue gains, see all sides of the case for yourself.

Explore 6 other fair value estimates on Etsy – why the stock might be worth 10% less than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

Opportunities like this don’t last. These are today’s most promising picks. Check them out now:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ETSY.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

IAMGOLD (TSX:IMG) shares have been active lately, attracting attention from investors interested in commodity stocks. The company’s recent moves and performance are prompting a closer look at valuation and growth prospects this year.

See our latest analysis for IAMGOLD.

IAMGOLD’s share price has pulled back 11.4% over the past week after a sprinting 74.9% climb in the last three months. This reflects both shifting sector sentiment and the company’s impressive year-to-date gain of 107%. Over the longer term, its 3-year total shareholder return stands out at more than 750%, signaling that momentum is still strong even with the latest short-term dip.

If sharp moves in gold stocks have your attention, it’s a good moment to broaden your scope and discover fast growing stocks with high insider ownership

Given such rapid gains, the crucial question becomes whether IAMGOLD’s impressive rally still leaves room for upside, or if the market has already factored in all of the company’s growth potential. Is this a buying opportunity, or is everything priced in?

IAMGOLD’s most widely followed narrative estimates fair value at $20.43, significantly above its recent close of $16.62. This difference frames the stock as having further upside, with analyst projections at the core of the narrative’s reasoning.

The successful ramp-up and ahead-of-schedule capacity achievement at the Côté Gold mine, coupled with consistent production and ongoing cost optimization, set the stage for a material near-term increase in gold output, which should significantly boost future revenues and cash flow as temporary ramp-up costs subside.

Read the complete narrative.

Want to know what fuels this bullish outlook? The narrative hangs on ambitious growth targets and bold profit assumptions for the years ahead. Major forecast upgrades, margin trajectories, and a notable shift in valuation multiples are at play. Find out what sets IAMGOLD’s fair value apart from the pack.

Result: Fair Value of $20.43 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent net debt and the heavy reliance on just a few key mines continue to threaten IAMGOLD’s future margins and long-term earnings growth.

Find out about the key risks to this IAMGOLD narrative.

If these views don’t quite align with your perspective, or you want to dig deeper and make sense of the numbers yourself, you can build your own case quickly and easily by using Do it your way.

A great starting point for your IAMGOLD research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

Smart investors broaden their horizons. Don’t miss your chance to uncover potential winners by using these powerful tools to find standout opportunities beyond IAMGOLD.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include IMG.TO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

As the Australian market shows signs of a modest upswing, buoyed by geopolitical developments and commodity price movements, investors are keenly observing potential growth opportunities. In this environment, companies with high insider ownership often attract attention as they may indicate strong confidence from those closest to the business, making them intriguing prospects for those seeking growth in the current economic climate.

Click here to see the full list of 96 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

Here’s a peek at a few of the choices from the screener.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Catapult Sports Ltd is a sports science and analytics company that develops and supplies technologies to enhance athlete and team performance across various regions including Australia, Europe, the Middle East, Africa, the Asia Pacific, and the Americas with a market cap of A$2.11 billion.

Operations: The company’s revenue is derived from three main segments: Tactics & Coaching ($36.66 million), and Performance & Health ($63.47 million).

Insider Ownership: 14.5%

Catapult Sports, recently added to the S&P/ASX 200 Index, has completed a follow-on equity offering of A$130 million. The company is forecast to achieve earnings growth of 68.69% annually and become profitable within three years, outpacing the average market growth. While revenue growth at 15% per year is slower than desired for high-growth entities, it still surpasses the Australian market’s average rate. The company’s recent acquisition discussions and insider ownership could drive strategic advantages.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mineral Resources Limited, with a market cap of A$8.84 billion, offers mining services across Australia, Asia, and internationally through its subsidiaries.

Operations: The company’s revenue segments include A$601 million from Lithium, A$2.33 billion from Iron Ore, and A$3.30 billion from Mining Services.

Insider Ownership: 11.4%

Mineral Resources is poised for significant earnings growth, with profits expected to rise 63.57% annually, surpassing the Australian market’s average. Despite a challenging financial year with a A$904 million loss and substantial debt of A$5.3 billion, no major insider selling occurred recently. The company plans asset sales to improve its balance sheet while new board appointments aim to bolster governance expertise. Trading at favorable valuations compared to peers enhances its investment appeal amidst these strategic changes.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Supply Network Limited supplies aftermarket parts for the commercial vehicle market in Australia and New Zealand, with a market cap of A$1.62 billion.

Operations: The company’s revenue segment is primarily from the provision of aftermarket parts for the commercial vehicle market, generating A$349.46 million.

Insider Ownership: 40%

Supply Network’s recent inclusion in the S&P Global BMI Index underscores its solid market position. The company reported robust financial performance, with sales reaching A$348.83 million and net income of A$40.02 million for the year ended June 2025. Forecasted earnings growth at 14.34% annually outpaces the Australian market average, while insider ownership remains stable with no significant selling activity recently observed. The appointment of Karen Phin as a director enhances board independence and expertise in capital management strategies.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

Companies discussed in this article include ASX:CAT ASX:MIN and ASX:SNL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

As the Australian stock market experiences a modest upswing amid geopolitical developments and commodity fluctuations, investors are keenly observing opportunities that may arise from undervalued stocks. In this context, identifying stocks trading below their intrinsic value can be particularly appealing, as they present potential for growth when market conditions stabilize.

Click here to see the full list of 32 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener.

Overview: Eagers Automotive Limited owns and operates motor vehicle dealerships in Australia and New Zealand, with a market cap of A$7.97 billion.

Operations: The company generates revenue primarily from car retailing, amounting to A$12.23 billion, with an additional contribution of A$54.69 million from property.

Estimated Discount To Fair Value: 14.0%

Eagers Automotive is trading at A$30.57, below its fair value estimate of A$35.54, indicating potential undervaluation based on cash flows. Despite a recent strategic partnership with Mitsubishi and a follow-on equity offering raising A$501 million, interest payments are not well covered by earnings. However, earnings are forecast to grow significantly at 21.6% annually over the next three years, surpassing the Australian market’s growth rate of 14.3%.

Overview: NRW Holdings Limited offers diversified contract services to the resources and infrastructure sectors in Australia, with a market cap of A$2.21 billion.

Operations: The company’s revenue is derived from three main segments: Mining at A$1.54 billion, MET at A$932.02 million, and Civil at A$823.72 million.

Estimated Discount To Fair Value: 47.3%

NRW Holdings is trading at A$4.81, significantly below its estimated fair value of A$9.13, suggesting undervaluation based on cash flows. Despite a decline in net income to A$27.67 million for FY2025 and insider selling, earnings are projected to grow substantially at 30.6% annually over the next three years, outpacing the Australian market’s growth rate of 14.3%. However, the dividend yield of 3.43% is not adequately covered by earnings.

Overview: Vault Minerals Limited is involved in the exploration, mine development, operations and sale of gold and gold/copper concentrate in Australia and Canada, with a market cap of A$4.85 billion.

Operations: The company’s revenue segments consist of Deflector (A$477.79 million), Sugar Zone (A$0.23 million), Mount Monger (A$287.58 million) and Leonora Operation (A$666.50 million).

Estimated Discount To Fair Value: 38.6%

Vault Minerals, currently priced at A$0.72, is trading well below its estimated fair value of A$1.17, highlighting potential undervaluation based on cash flows. The company has shown a turnaround with net income reaching A$236.98 million from a loss last year and sales jumping to A$1.43 billion from A$620 million. Earnings are forecast to grow significantly at 21% annually over the next three years, supported by a share repurchase program targeting up to 10% of issued capital.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ASX:APE ASX:NWH and ASX:VAU.

This article was originally published by Simply Wall St.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Story Continues

Peet, a notable player in the Australian property scene, has shown resilience with its debt to equity ratio improving from 57.1% to 53.5% over five years. Despite a high net debt to equity ratio of 45.8%, its interest payments are well covered by EBIT at 10.7 times, reflecting robust financial health. The company reported earnings growth of 60% last year, outpacing the real estate industry average of 40.9%. With sales jumping from A$292 million to A$415 million and net income rising from A$36 million to A$58 million, Peet’s strategic review led by Goldman Sachs aims to leverage these strong market conditions further.

Simply Wall St Value Rating: ★★★★★☆

Overview: Wagners Holding Company Limited is involved in the production and sale of construction and building materials across several countries, including Australia, the United States, New Zealand, the United Kingdom, Papua New Guinea, and Malaysia, with a market capitalization of approximately A$565.22 million.

Operations: Wagners Holding generates revenue primarily from Construction Materials (A$257.69 million), Project Services (A$105.71 million), and Composite Fibre Technology (A$68.45 million). The company also earns a small amount from Earth Friendly Concrete, contributing A$0.16 million to its revenue streams.

Wagners Holding, a nimble player in Australia’s construction materials sector, has seen its earnings surge by 120.9% over the past year, outpacing industry growth. The company recently expanded its concrete and quarry operations to capitalize on infrastructure demand in Southeast Queensland. Despite sales dipping to A$431 million from A$481 million last year, net income climbed to A$22.72 million from A$10.28 million, highlighting improved operational efficiency with high-quality earnings and satisfactory debt management at a 12.6% net debt-to-equity ratio. Wagners’ inclusion in the S&P/ASX Emerging Companies Index underscores its growing market presence amidst strategic expansions and sustainability-focused ventures like Composite Fiber Technologies (CFT).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ASX:DUI ASX:PPC and ASX:WGN.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

At Fortune’s Global Forum in Riyadh, Saudi Arabia, on Sunday, Amini founder and CEO Kate Kallot said her company is building computing power that will enable purpose-built AI solutions for Africa.

The former Nvidia executive also predicted that AI will add $2.9 trillion to Africa’s economy over the next five years as governments begin to view data and computing capacity as critical infrastructure, alongside roads and hospitals. Kallot served as head of emerging areas at Nvidia before departing in 2022 to start Amini.

As infrastructure investments grow, governments are demanding that large language models deployed in Africa actually reflect local realities, given that nearly a billion Africans are still offline while LLMs are trained on internet data, Kallot said.

This new mindset of strategic partnerships has expanded from the governmental level to the private sector, and startups have emerged that will help shape the future of their countries and their economies, she said.

“We’re seeing technology and AI as potentially one of the biggest equalizers that Africa has ever seen,” Kallot added.

But that’s not yet reflected in the global narrative, which doesn’t recognize AI innovation in Africa, she pointed out.

The reality is that the continent is actually a leader in developing AI that’s efficient, responsible, and inclusive—and the rest of the world is about to find out.

“Within the next five to 10 years, we’re going to see African intelligence being exported in other countries across the Global South,” Kallot said.

Changing the global narrative

The negative narrative about Africa is costly, according to Ndidi Okonkwo Nwuneli, CEO of the global advocacy group One Campaign.

That bias has made borrowing costs for African countries more expensive, with negative reporting about the region costing an estimated $4.2 billion. But in fact, certain sectors are seeing returns as high as 10x.

“We’re changing the narrative, and we’re saying Africa is a return on investment, not a risk,” she told Fortune’s Diane Brady. “And this is the time to partner with us with fair financing that delivers results and delivers jobs.”

Flipping the script is also top of mind for Boris Kodjoe, cofounder of the investment and impact platform Full Circle Africa.

The former model and Hollywood actor noted that Africa’s diaspora—the world’s third-largest after China’s and India’s—has been structuring its capital in recent years and is key to the growth story.

Today, Africa’s economy is young, creative, digital, and moving fast, defining itself with culture and technology rather than just its natural resources, Kodjoe explained.

“Africa is the only region where population is getting younger, more connected, and more entrepreneurial all at the same time,” he added. “I think the world is no longer asking ‘why Africa,’ but ‘when can we get in?’ And i think the time is now.” 

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Nigeria’s leading industrialist Aliko Dangote is planning to expand capacity at his group’s petroleum refinery to 1.4mn barrels per day and will sell shares in the business to help finance the expansion.

Dangote told the Financial Times he would sell up to a 10 per cent stake in the refinery “depending on what the Nigerian market can take” and is also seeking $5bn in financing from Afreximbank, the African trade bank.

The expansion, which the multi-billionaire industrialist announced in Lagos on Sunday, would make the refinery in Lagos, Nigeria’s commercial capital, rival Reliance Industries’ refinery at Jamnagar in India as the biggest in the world. Jamnagar says it has an output of 1.4mn barrels a day.

The plant, which has an existing capacity of 650,000 barrels per day, has yet to reach full throttle.

However, the plan reflected his confidence in the Nigerian economy and a response to rising regional demand, Dangote said, adding that it would help further reduce the continent’s dependence on imports.  

“This expansion reflects our confidence in Nigeria’s future, our belief in Africa’s potential, and our commitment to building energy independence for our continent,” he said.

Dangote is the only African on the Forbes list of the 100 wealthiest people in the world, with an estimated net worth of $26bn.

He said the expansion would require 65,000 workers, most of whom would be Nigerian, and expected it to take three years.

The initial phase of the refinery took nearly a decade to construct from start to finish and cost about $20bn, and Dangote said he had learned lessons from the first phase to reduce the completion time of the second.

George Elombi, the new president of Afreximbank, said his institution was in talks with the Dangote group to provide $5bn in loans towards the expansion.

“We have agreed to look for the money so (the Dangote group) can double production, maximise certain production lines and thereby reduce the price of most of its products,” he told the Financial Times.

This was part of a wider strategy the bank has begun in order to encourage industrialisation and increase support across the continent for the processing of raw materials, he said.  

Since it began producing diesel and aviation fuel, and gasoline in 2024, the Dangote group has shaken up the Nigerian oil market, which after years of mismanagement at state-owned refineries had become dependent on costly imports of refined products.

But it faced difficulties at the outset in securing enough oil from Nigeria’s national oil company NNPC, which owns a 7.2 per cent stake in the refinery.

The group sourced crude from around the world with cargoes from Angola, Brazil, Equatorial Guinea, Ghana and the USA to satisfy demand, but has reduced inflows recently in response to rising global prices.

At an Afreximbank event in Cairo on Saturday, Dangote said the refinery construction had been severely disrupted by the Covid-19 pandemic, but previous support from the African trade bank had helped see the project to completion.

“Without Afreximbank the Dangote refinery wouldn’t have been possible,” he said.  

Introduction

The Gulf Cooperation Council (GCC) is fast emerging as a global leader in biotechnology and digital health. This growth is driven by the unique mix of demographic pressures, economic diversification goals, and health security imperatives experienced in these countries. Saudi Arabia and the UAE are leading the sector’s regional expansion: Saudi Arabia’s recent launch of its National Biotechnology Strategy envisions a contribution of US$34.6 billion to non-oil GDP by 2040, while the UAE’s digital health market is forecast to grow by over 23 percent by 2030, pushing the sector to approximately US$2.65 billion in value.

The expansion of such initiatives strengthens GCC countries’ reputations for delivering high-quality healthcare for both locals and expatriates and aligns with wider economic transformation agendas. The biotechnology industry and health tourism sector are lucrative opportunities with estimated values of US$1.5 trillion and US$8.7 billion, respectively.

The biotechnology industry and health tourism sector are lucrative opportunities with estimated values of US$1.5 trillion and US$8.7 billion, respectively.

However, while intensive public and private investment in initiatives such as digital health partnerships, national genome programmes, and AI-driven diagnostics mark major progress, the sector still faces bottlenecks in research infrastructure and data governance. Consolidating these advances through stronger coordination with research institutions and developing comprehensive health data governance frameworks will be key to turning early gains into lasting global leadership. 

Diseases of modernity: rising wealth, sedentary lifestyles and ageing populations

The Gulf states face a health paradox common to high-income societies: economic gains have brought prosperity and longevity, but also a surge in non-communicable diseases. The WHO estimates that around 74 million people in the Eastern Mediterranean live with diabetes, with prevalence rates in the GCC reaching up to 20 percent. At the same time, life expectancy has risen dramatically from 60 years in the late 1970s to around 83 years in 2025 in the UAE, with similar trends observed across the five other GCC states. This puts increasing pressure on both hospitals and home-based care services, given that 80 percent of healthcare needs typically occur post-retirement age.

To meet these needs, states are seeking to implement new technologies within their healthcare offerings. Saudi Arabia’s Digital Health Strategy and Roadmap explicitly includes remote monitoring, virtual clinics, and the integration of telehealth as priorities under Vision 2030 and related health transformation programmes, incorporating technologies that can provide more accessible healthcare to citizens who may have limited mobility. This is also particularly important given Saudi Arabia’s large population and vast geography, as it enables care delivery to more people without extensive travel. In the UAE, ambitions for the health sector outlined in Vision 2021 and the more recent We the UAE 2031 consist of enhancing quality of life and specialised care offerings by continuing to develop an innovative, state-of-the-art healthcare system. As such, the Department of Health’s (DOH) Policy on Digital Health identifies technologies such as “telemedicine, web-based analysis…  wearable devices, and clinic or remote monitoring sensors” as essential for early diagnostics and care management.

Next-generation sequencing and AI are being deployed to analyse population-wide genetic data, identifying variants linked to rare and hereditary disease.

Alongside these efforts, the GCC is deepening its focus on gene mapping and preventative health. The Gulf’s high consanguinity rate among local populations has been a concern for decades, prompting Saudi Arabia to institute a law requiring pre-marital genetic testing in 2002 — the first such law in the region, subsequently adopted across all GCC states. Building on this foundation, targeted testing between couples has now been expanded as governments work to map entire populations. Next-generation sequencing and AI are being deployed to analyse population-wide genetic data, identifying variants linked to rare and hereditary disease. Such projects are essential to the development of “precision medicine”, in which the patient’s specific genetic profile is used to inform and optimise treatment plans rather than relying on generalised clinical guidelines. These programmes also address the Eurocentric bias in earlier datasets, creating population-specific genetic baselines that strengthen diagnostic accuracy.

These initiatives position Gulf countries as leaders in data-driven healthcare, advancing Vision 2030 and We the UAE 2031 goals for economic diversification and improved quality of life. The UAE’s medical tourism market alone was valued at US$334.9 million in 2024, projected to reach US$975 million by 2032. By expanding biotechnology and digital health, both countries aim to extend life expectancy and ease pressure on healthcare systems as populations expand and age.

Building momentum: investment, research and data regulation

Biotechnology and digital health initiatives in the GCC are benefiting from significant levels of government commitment and capital investment. The healthcare-focused private equity company Quadria Capital recently allocated a quarter of its latest US$1 billion fund to the GCC, specifying digital health as a key sub-sector for growth and marking the region as a strategic hub for next-generation healthcare innovation. Saudi Arabia’s flagship Global Health Exhibition saw approximately US$13.3 billion in announced healthcare investment in 2024, and has dedicated a considerable tranche of activities and discussions to the topic of “Digital Health” for the upcoming 2025 edition in late October. In the UAE, the Abu Dhabi Department of Health and the Abu Dhabi Investment Office (ADIO) recently signed an MoU with GSK to establish a medical institute in the emirate, focused on integrating genomics data to advance cancer research. Another strength for the region is the positive reaction that genome projects have received from citizens. Because such projects necessitate a vast amount of data, the voluntary participation of citizens is an essential component. Public support is likely thanks in part to the existence of genetic testing as a pre-marital requirement, in addition to strong public messaging and education campaigns in both the UAE and Saudi Arabia that emphasise the transformative potential of AI’s algorithmic analyses and its central place in the GCC’s future economies.

To ensure long-term competitiveness in medical tourism and biotechnology, GCC countries should expand research capacity alongside treatment infrastructure.

However, challenges related to research capacity and infrastructure, which are uneven across the region, remain. While Abu Dhabi’s Masdar City and Dubai Science Park are key host centres for life sciences firms working in genomics and digital health, most clinical research remains concentrated in only a handful of facilities. The UAE, for example, has only eight on-site research centres across its 168 inpatient facilities. This is also true of Saudi Arabia, where specialist institutions like King Abdullah International Medical Research Center (KAIMRC), King Abdullah University of Science and Technology (KAUST), and King Abdulaziz City for Science and Technology (KACST) are impressive, but relatively few in number compared to global leaders in life sciences innovation, such as the US and Switzerland. To ensure long-term competitiveness in medical tourism and biotechnology, GCC countries should expand research capacity alongside treatment infrastructure. Developing research ecosystems would likely attract more global talent while simultaneously increasing economic gains by driving high-value innovation. In addition, future policy development in the evolving landscape of global data governance must balance security with flexibility — strong enough to guard against high-profile data breaches that have become a persistent risk across the sector, yet open enough to encourage biotech investment. Focusing on research depth and trusted data systems will position the GCC as a secure and innovation-driven healthcare hub.

Conclusion

Over the past decade, the GCC — led by Saudi Arabia and the UAE — has laid the groundwork for a modern, innovation-driven healthcare landscape. Through large-scale investment in the sector, including digital health initiatives and national genome programmes, the region is positioning itself as a global hub for precision medicine and data-driven health innovation. These initiatives address the challenges of population growth, increased life expectancy, and lifestyle-related diseases while supporting broader diversification goals under Vision 2030 and We the UAE 2031. Yet, progress remains uneven, particularly in research infrastructure and regulatory coherence — areas that will determine whether current momentum translates into lasting global influence.

The strong investment trends in the wider sector should be matched by greater allocations toward building specialised research institutions to enable the region to generate original medical advances.

Given that it is the UAE’s ambition to become a global destination for specialised care and Saudi Arabia’s mission to further encourage a competitive environment among healthcare providers, research capacity must become a priority. The strong investment trends in the wider sector should be matched by greater allocations toward building specialised research institutions to enable the region to generate original medical advances. In addition, GCC countries should seek to continuously advance and refine their health data regulations while avoiding overburdening market actors with excessive compliance duties, thereby balancing investor confidence with robust safeguards for privacy and ethical use.

This commentary was originally appeared on ORF Middle East.

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