Arab Health 2015 Briefing

Arab Health 2015

Briefing

Welcome and Introduction

Elodie Journet Deputy Consul-General & Trade

AGENDA _{Austrade’s Key Markets in MENA} UAE – Market trends and triggers Opportunities for Australian Industry Dubai Health Authority

An Australian Experience with Market Entry in GCC Saudi Arabia

Kuwait India

Austrade Focus

– Key Markets in MENA

Main Focus: GCC – UAE, KSA, Kuwait, Bahrain, Oman, Qatar; and Morocco On the Radar: Iran, Jordan and Tunisia

UAE #1 Trading Partner

ADIA a major investor in ports, roadways, hotels and real estate

UAE Peaceful Nuclear Cooperation Agreement 147 flights/week 98,000 visitors from MENA 2013- 2014 18,000 students from GCC

Regional Snapshot

United Arab Emirates

Quinita Braggs

Australia Unlimited

 Growing population, high per capita income and increased health awareness.



Rise in chronic and lifestyle diseases

50% of deaths in the UAE to arise from diabetes by 2020  Mandatory Health Insurance schemes

 UAE aims to be the world’s best and most effective medical tourism hubs/World Expo 2020

– Substantial investment in the healthcare sector

Healthcare Market Demand

 GCC Healthcare expenditure to grow 11.4%

 UAE: Top 20 countries globally in Healthcare Spending Per Capita

Overall H/C expenditure to grow by 7.6% in 2014 Highest per capita drug expenditure in MENA (80% imported)

 Mandatory health insurance in Dubai since 2014

Similar measures introduced in 2007 in Abu Dhabi saw

– 40% increase in demand for healthcare services

– Doubled revenues for most private hospitals in region

– Increase in CAGR of 98% in outpatient claims & 58% in inpatient claims

 Govt largest player in H/C infrastructure

Increasing number of private entities (PPP)

 UAE cosmetics sales to grow 24%

Make-up products or colour cosmetics Men’s grooming products

 Baby products

Premium products and higher quality ingredients

Skincare Market Demand

 Increasing demand of Halal certified, natural and organic products.

 Public and Private hospitals accredited

 Importance of preventive medicine

 Reduce the prevalence of smoking, cancer and lifestyle related diseases

 Increase the healthcare system’s readiness to deal with epidemics and health risks

Dubai Expo 2020

Hosting Expo 2020 will further accelerate pace of healthcare development. In response to current & future healthcare demands from residents & medical tourists.

Dubai Health Strategy 2013-2025

 3 new major hospitals planned

– Mohammed bin Rashid Hospital to be rebuilt with 6 specialised centres

• Heart, cancer, cosmetic surgery, day surgery, diagnostic centre, kidney problem centre

– Al Maktoum Hospital

– Al Khawaneej Hospital

 40 new healthcare centres

Opportunities _{Healthcare policy framework, best practice exchange & research}

collaboration in green hospital, sports medicine, tropical diseases, remote health services

Master planning, Design, construction of medical facilities

Cutting edge medical technologies, products and equipment

Management and operation of medical facilities

Jane Leanne Griffiths Associate Professor

 The Dubai Health Authority, established in 2007 is a

government organisation overseeing the health system of Dubai, UAE.

 Dubai presently has 4 government hospitals, 22 private hospitals, 2300 clients and polyclinics with 25,846 medical professionals

Mr Aladin Niazmand

Director

TAHPI

GCC Experience and market

entry advice

TAHPI Pty Limited Specialist Health Planners

TAHPI in a nutshell

 Covers Health Planning and Healthcare Design from A to Z

 Is a recognized brand in the field

 Knows the Healthcare industry well

 Has industry-standard rapid design methodology

 Partners with Health Authorities World-wide

 Has supporting HFBS software technology

 Offices in Australia, UAE, KSA, Malaysia, India, Hong Kong

 Associate offices in Bahrain, Kuwait, Algeria, Lebanon, Singapore, China

 In Dubai since 2007

 Registered in Dubai Healthcare City freezone (DHCC)

 Also registered in Abu Dhabi (requires 10 years background)

 UAE is the central hub of commerce in GCC Countries

 Work from the Dubai base in all Emirates of the UAE and in several GCC Countries such as:

– Bahrain

– Kingdom of Saudi Arabia

– Qatar

– Kuwait

– Oman

 Most important public organisations: DHA and HAAD

 Most important events of the year:

– Arab Health (early January)

– Hospital Build Expo and Conference ( early June)

 Dubai has 26+ hospitals and 1200 medical facilities

 Abu Dhabi has 50+ hospitals and 700 medical facilities

 The population will double in 10 years and mandatory

insurance will be firmly established. The demand will spike in 2-3 years and continue to grow.

 TAHPI has patiently and persistently worked with both DHA and HAAD to do the capacity planning for Dubai and Abu Dhabi from 2013 to 2035.

 Travel to the target Country for reconnaissance, meet colleagues, research, do your homework

 Then take risks. There will be no reward for the risk-averse

 Have a budget for the learning and establishment process and be

prepared to loose it all

 Have a single entity, verifiable, searchable with a background and

international reputation. Don’t complicate the identity with JV’s, associations, new names etc

 Have a local office with someone permanently present. They don’t

like fly-in-fly-out people. They cannot be trusted.

 Leave behind any arrogance but keep your pride and confidence in

your abilities.

 Australia is very popular. Capitalise on it and do not put down your

colleagues, even your competitors from Australia.

 Freezone does not require local partner in business. But depending on the nature of the work, it can be restrictive.

 Your company will still pay Tax back in Australia but staff moving semi-permanently to the UAE do not pay tax

 Do not rely on Government hand-outs, but ask for general assistance in opening doors. State Government are also very helpful (especially NSW, and QLD)

 Be prepared to tender for everything and be extremely competitive

 Be prepared to lodge a tender bond and later if you win, a performance bond. Must be from a local Bank.

 Tell everyone you are there forever, no matter what happens

 Capacity Planning for both Dubai and Abu Dhabi

 Health Planning software customised and commissioned for Dubai

and Abu Dhabi

 Healthcare Standards and Guidelines for Abu Dhabi and Sharjah

 Hospital Projects in Dubai, Abu Dhabi, Sharjah, Ajam, RAK, Bahrain

and KSA and India, managed from Dubai

 Two largest healthcare projects in the region:

– Medical City, Riyadh

– Medical City, Bahrain

 Attended Arab Health and Hospital Build every year since 2007

 Master Classes in Health Planning every year

 Certificate Courses in Health Planning together with University of

Wollongong in Dubai

Winner of Hospital Build Award

Winner of a prestigious International Award in 2012

“Best Initiative to Improve the Design Standard of Healthcare Facilities”

Local Standards and Guidelines

• HAAD Health Facility Guidelines (HAAD-HFG)

• Sharjah SHCC Facility Guidelines • Indian Health Facility guidelines

• International Health Facility Guidelines (iHFG)

• Pending Health Facility Guidelines for Singapore

• Health Consultant Prequalification Guidelines

• Health Facility Licensing Guidelines

• Govt. Application Processing Outsourcing Author of Numerous Healthcare

Al Wasl Hospital – Dubai

Rashid Hospital – Cancer Center – Dubai

Specialised Hospital – Sharjah

Tawam Hospital – Al Ain (tender)

Childrens Hospital – Bahrain

Childrens Hospital – Oman

Bright Point Hospital – Abu Dhabi

MAF Polyclinic, Deira – Dubai

Private Hospital Qatar

Medical City – Bahrain and Riyadh

Project Samples

Saudi Arabia

Mr Mohammed Kamal

 The Saudi Arabian market characteristics are similar to its neighbouring countries in terms of

- Young population ( 60% of the 24 million are under 25 years ).

- Oil based economy ,

- Rapidly developing healthcare sector (increasing demand due population increase)

- Government is a major healthcare provider

 Healthcare attracts the biggest annual budget allocation after Education. In 2014 , the healthcare was allocated SR 108 billion (equivalent to A$ 33 ) , 8% increase over last year’s budget.

 Increasing demand

 Government is encouraging the private sector to participate.

 Compulsory health insurance system

 The public sector’s share in health expenditure is forecasted to decline to 74% by 2015, from its current share of 77%.

 Bank’s appetite towards funding long-term projects of private medical operators is rather positive. Long-term loans may

extend up to six years

 Hospital design and hospital operation

 Generic and non-generic medicine

 Medical equipment

 Education and Training

 Centralised decision making process

 Lengthy registration process for medicine

 Lack of skilled employees

Key Opportunities

India

Ms Sangeetha Krishnamoorthy Business Development Manager

India – a global economy

US$ 1.7 trillion economy

3rd _{largest economy in PPP terms}

after USA and China

Australia’s 4th _{largest export}

market

India: drivers in healthcare

Public vs private spend

Healthcare Spend as % of GDP

Spending patterns

Quick Facts:

• Life expectancy improved by 10 years to 67 over the past decade Increase in lifestyle diseases requiring advanced healthcare services

• 98 million people 60+ years today

expected 192 million people 60+ years by 2030

• Healthcare sector is expected to reach AUD 100 billion by 2015 AUD 260 billion by 2020

• Rapidly developing fueled by large investments backed by private equity Private players are delivering the growth

• Tier II & III cities growth ~5.0% higher than the market in metro cities Both key cities and smaller centers contributing to growth

India - healthcare market - subsectors

Hospitals Pharmaceuticals Diagnostics Medical Equipment & supplies

Medical Insurance & Tourism

• 76% is privately owned and 24% is govt.

• 80% out patients and 60% in-patients are in the private sector • Growth – 21 %

• AUD 4.5 billion

• Growing at 9% annually • Mainly centred around

generics, APIs, drug development • Export oriented • AUD 500 million • Growing at 20% • Pathology contributes to 2.5% of healthcare market • Independent diagnostic centre chains across

• AUD 6 billion by year 2015

• 72% of the devices are imported

• Penetration < 5% • Medical Tourism

AUD 2.2 billion by 2015.

Australia Unlimited

India – Key Opportunities

• Novel Drug Delivery Systems

• Clinical Trials

• Commercially viable translational studies

• High-end Medical and Diagnostic devices (Cardiovascular

devices, Neurovascular, Patient Monitoring )

• Health IT (Telemedicine, data management systems, skills &

India: What to expect?

• Expensive market to source products and services • Advanced technologies

• Common language - cricket

• Cochlear, ResMed, Compumedics, Gene Care, Rapid Nutrition Technology, SGE Laboratory Accessories Pvt. Ltd., J. K. Ansell Ltd.

• GE Medical System, Siemens, Pfizer, GSK, AstraZeneca, Becton Dickinson, Johnson & Johnson.

• 100% FDI under the automatic route in hospitals • Relatively low Government intervention in private sector • Low cost ,skilled manpower

What’s difficult?

• Poor state of Intellectual Property (IP) enforcement, reverse engineering

• US, Germany and Japan’s market share 45% for medical devices

• Lack of quality training • Timelines

Some market tips

• Understand the market well (seek assistance)

• Create a business model specific to India

• Factor costs and pricing, India is a value driven market

• Work on relationship building • Build your brand

Events

• Bio Asia – February 2015

• Bangalore Bio – February 2015

• Australian Trade Commission’s Innovation Showcase – September 2015

Health and Life Sciences Team – India

Nicola Watkinson

Senior Trade & Investment Commissioner Sangeetha Krishnamoorthy Grace –Ann-Lobo Investment Anlyst Kylie Bell Trade & Investment Commissioner Bhavin Kadakia BDM Elsy Samuel BDM

Arab Health 26 – 29 January 2015

Dubai International Convention & Exhibition Centre, UAE

www.arabhealthonline.com

27 January 2015 – Australian Networking reception

Timing 18:30 – 20:30

Venue Conrad Hotel, Dubai – UAE

Tailored services and visit programs

Australia Unlimited MENA 12 – 19 April 2015

(Dubai, Abu Dhabi, Riyadh, Kuwait, Morocco)

Elodie Journet

Trade Commissioner

Dubai, United Arab Emirates

E: [email protected]

Quinita Braggs

Business Development Manager Dubai, United Arab Emirates

E: [email protected]

Ismail Farag

Business Development Manager Dubai, United Arab Emirates

E: [email protected]

Adel Ghaly

Business Development Manager Kuwait

E:[email protected]

Sangeetha Krishnamoorthy

Business Development Manager Hyderabad, India E: sangeetha.krishnamoorthy@austrade. gov.au Visit: www.austrade.gov.au/MENA Like: www.facebook.com/AusUnlimitedUAE Add: www.linkedin.com/groups/Austrade-MENA

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