Financial services firm Alkhair Capital Dubai has launched a $100 million Islamic fund to tap into the growing healthcare sector.

The Alkhair Capital Healthcare Sector Fund, domiciled in the Dubai International Financial Centre (DIFC), will target businesses “harnessing cutting-edge artificial intelligence (AI) to bolster healthcare providers,” according to a statement on Monday.

It aims to address the delays faced by hospitals and other healthcare facilities in the processing of medical claims payments and generate an annual return of 6% to 12% at the same time. The investments will be “strategically allocated” across short to medium-term durations.

The UAE's healthcare sector has $1.2 billion in medical claims caught in processing.

“Healthcare facilities encounter a delay of 112 days on average to receive 90% of their payments from insurance companies," said Naveed Aurakzai, CEO of Alkhair Capital. 

"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 spending within the GCC.” 

The company has tied up with fintech company Klaim Technologies, which specialises in AI-powered solutions for assessing insurance claims, to meet the objectives of the fund.

“Leveraging our AI-driven insurance claims assessment technology, we aim to optimise and accelerate the claims process, facilitating prompt payments to medical facilities,” said Karim Dakki, CEO of Klaim.

(Writing by Cleofe Maceda; editing by Seban Scaria)