arab health 2015: healthcare market opportunities webinar for u.s. exhibitors
TRANSCRIPT
Arab Health 2015:Healthcare Market Opportunities
Webinar for U.S. Exhibitors
Webinar Agenda Welcome Remarks
Speaker: Chandra Brown, Deputy Assistant Secretary for Manufacturing
GCC Regional Healthcare Market Overview
Speaker: John Simmons, Regional Senior Commercial Officer, Gulf Region
North Africa & Levant Regional Healthcare Market Overview
Speaker: Diane Jones, Deputy Senior Commercial Officer, CS Egypt
Sub Saharan Africa Regional Healthcare Market Overview
Speaker: Don Nay, Regional Senior Commercial Officer, Sub Saharan Africa
Q&A
Chandra Brown
Deputy Assistant Secretary for ManufacturingU.S. Department of Commerce International Trade Administration
U.S. leadership in medical technologies is widely recognized
The U.S. is the world’s largest exporter of medical devices
– In 2013, U.S. exports of medical devices was conservatively valued at more than $42 billion
The Middle East – the Gulf, North Africa, and Levant are investing in healthcare infrastructure
– Exports of U.S. manufactured medical devices to the region are up 25% over the past 5 year period
Many distributors and buyers travel to Dubai each January to learn about the products and services you provide to help them meet their increasing patient demands
– Text.
Arab Health is a key venue to showcase our expertise
HEALTHCARE IN THE GCCU.S. Commercial Service
UAE MARKET
UAE OVERVIEW The UAE is one of the most developed markets in the
Middle East, with a strong healthcare infrastructure. The UAE is actively expanding its national healthcare
system to meet the growing needs of its people and support economic diversification.
In 2013, the UAE pharmaceutical market reached a value of US$1.91bn & is expected to grow at a
compound annual growth rate (CAGR) of 5.8%. The UAE Healthcare expenditures reached an
estimated $16.8bn & is expected to grow at a compound annual growth rate (CAGR) of over 16%
through 2014.
HOSPITALS IN THE UAE
Emirate Total Population
Government Hospitals*
Private Hospitals* No. of Beds*
Abu Dhabi 2.5 mil 14 25 4,226
Dubai 2.1 mil 6 32 3,857
Sharjah 1.5 mil 5 10 898
Ras Al Khaimah 300,000 4 1 562
Ajman 240,000 1 2 189
Fujairah 558,000 2 1 358
Umm Al Quwain
606,000 1 ---- 606
TOTAL 33 71 10,696*Source: U.S.-UAE Business Council Report
HEALTHCARE EXPENDITURES
DESCRIPTION 2011 2012 2013
Health Expenditure (US$bn) 12.94 14.74 16.35
Health Expenditure (US$bn), %of change y-o-y 17.4 13.9 10.9
Health Expenditure per capita (US$) 1,449.7 1,601.5 1,749.5
Health Expenditure (%GDP) 3.47 3.65 3.83
Healthcare Expenditure Indicators*
*Source: World Health Organization
HEALTHCARE EXPENDITURES
DESCRIPTION 2011 2012 2013
Government Health Expenditure (US$bn) 9.62 11.02 12.23
Government Health Expenditure (US$bn), %of change y-o-y 19.6 14.5 11.0
Government Sector Health Expenditure, % of total 74.7 74.7 74.8
Healthcare Governmental Indicators*
*Source: World Health Organization
HEALTHCARE EXPENDITURES
DESCRIPTION 2011 2012 2013
Private Health Expenditure (US$bn) 3.31 3.72
4.12
Private Health Expenditure (US$bn), %of change y-o-y 11.3 12.4 10.6
Private Sector Health Expenditure, % of total 25.6 25.3 25.2
Healthcare Private Indicators*
*Source: World Health Organization
DRUG MARKET EXPENDITURES2013
*Source: United Nations Comtrade Database
Drug Market (2013) * US $
Prescription Drugs 1.57 bn
Patented Drugs 1.26 bn
OTC Drugs 350 mil
Generic Drugs 300 mil
U.S. EXPORTS TO THE UAEHS
CODE DESCRIPTION U.S. DOLLARS % OF SHARE
% OF CHANGE 2013 / 2014
2012 2013 2014 2012 2013 2014
30 Pharmaceutical Products 62,172,638 73,391,219 81,972,368 100 100 100 11.69
90 Optic, photo, medical or surgical instruments 510,829,316 450,355,957 526,868,146 100 100 100 16.99
TOTAL 573,001,954 523,747,176 608,840,514
GRAND TOTAL EXPORTS 20,219,249,993 22,774,849,871 20,385,344,836
% OF MARKET SHARE 3% 2% 3%
MEDICAL TOURISM In April 2014, HH Sheikh Hamdan Bin Mohammed Bin Rashid Al
Maktoum, Crown prince of Dubai, approved the Dubai Medical Tourism strategy with Dubai Health Authority (DHA), responsible
for the initiative and to provide oversight and promote medical tourism.
The objective of medical tourism is to position Dubai as a globally recognized destination for elective health and wellness
treatments.
In 2012, 107,000 medical tourists visited Dubai generating US$178 million. By 2016, the DHA expects that number to
increase to 170,000 tourists with revenues of about US$ 300 mil.
PROJECTS IN THE PIPELINEDubai
40 healthcare centers6 specialized centers at New Rashid Hospital: Heart, cancer, cosmetic
surgery, day surgery, a diagnostic center, and a center for treating kidney problems
Al Maktoum Hospital: By Al Maktoum Airport, Jebel AliAl Khawaneej Hospital
Aster DM Healthcare: 3 hospitals (270 beds)Dr. Soliman Fakeeh Hospital (DSFH): One Hospital at the Dubai Silicon
Oasis (300 beds) Mohammed bin Rashid Hospital: Located on Sheikh Mohammed bin
Zayed RoadNew Rashid Hospital by DHA (300 beds +160 beds for emergencies)
The University Hospital: Fakeeh Medical University at the Dubai Silicon Oasis
PROJECTS IN THE PIPELINEAbu Dhabi / Al Ain / Western Region
Al Bustan Speciality Hospital - MussafehBin Omeir HospitalBurjeel Medical City (a part of Mohammad Bin Zayed City) by VPS HealthcareBurjeel’s Reem Island Daycare CentreDialysis CenterSAS Al Nakheel HospitalSKMC: A new general hospital and a specialized pediatric hospital will replace the existing facilities at Sheikh Khalifa Medical City (SKMC)Women’s Health Hospital in SKMC (838 beds)Zayed Military HospitalAl Towayya Ambulatory Healthcare CenterAl Ain Hospital (a new replacement), increasing bed capacity from 412 to 713Ghayathi Community Hospital in the Western RegionAl Sila Hospital in the Western Region
SAUDI ARABIA MARKET
SAUDI ARABIA OVERVIEW The Saudi health-care sector remains the largest in the region in terms of
expenditures, size, activity, and potential. Annual spending on health care was estimated at $26.4 billion in 2012, more than 85 percent accounted for by the Saudi government. The government has allocated $28 billion for the health and social development sectors in the 2014. The funds will be allocated for the construction of 17 new hospitals and completion of 137 hospitals and primary health care centers.
In March 2011, the King provided the MOH with $4.27 billion in additional funding to build and expand various medical cities across Saudi Arabia. Other government organizations also plan to enhance their health care services including 20 teaching hospitals for the Ministry of Higher Education, two medical cities for the Ministry of Interior, an HIS for the Ministry of Defense and Aviation, and another HIS for the Medical Services department at the Royal Commission for Jubail & Yanbu.
MARKET DRIVERS
Saudi Arabia like other countries in the Gulf continue to exhibit life style change trends within its morbidity statistics.
For example: Over 30% of the Saudi population is classified as
overweight. Asthma affects 10-15% of children. More than 22% of the populations are regular
smokers. Heart diseases increasing an average 5.3% annually. An estimated 17% of the population is diabetic.
MARKET TRENDS RESPONSE With an annual population growth rate of 2.5% to 3%,
Saudi Arabia would require an additional average annual investment of $587 million in hospital bed capacity to keep pace with demand. Hospital beds currently exceed 60,000 for all hospitals in the Kingdom.
The high budgetary allocation--$28 billion for the
healthcare sector is attributed to the need to ensure health service delivery due to new health projects, expansion and growth of existing hospitals and clinics, the aging population, and increased morbidity due to lifestyle diseases common in the GCC and developed countries.
MEDICAL DEVICES Saudi Arabia known to procure in excess of USD 1.7
billion in medical/surgical equipment in 2013. This accounts for nearly 50% of all medical/surgical equipment spending in the GCC.
Best Prospects:• Hospital equipment, medical disposables, OR
equipment, Rehabilitation, Pathology/laboratory instruments, Radiologic equipment, Diagnostics.
• Primary healthcare interests are in Oncology, Cardiology, Orthopedics, Trauma, Diabetes care, Nephrology, as well as lifestyle management of asthma, obesity and other common ailments
PHARMACEUTICALS The accounting and research firm Deloitte reports that
the Saudi pharmaceutical market will continue to experience 4.7 percent per annum and reach USD 4.7 billion by 2016.
Like other countries of the GCC, Saudi Arabia is faced by demographic shift relating to an aging population and changes to the morbidity statistics attributed to changes in lifestyle.
It is estimated that the demographic shift would result in the 45-65 age group and the 65+ age group to grow by an average of 6% through 2020.
Increased spending on health care, an aging population, and continued treatment of “life style” diseases would assure exporters that the pharmaceuticals/ life sciences market will continue to be robust.
REGULATORY ENVIRONMENT All medical devices, pharmaceuticals, and biologics must be
approved by the Saudi Food and Drug Authority
Similar to the U.S. FDA’s Centers for Devices, Pharmaceuticals/Biologics, and Food Safety/Applied Nutrition. U.S. exporters must have an importing representative registered with the Saudi FDA for post market surveillance and reporting of adverse incidents etc.
The Saudi Food and Drug Authority maintains an open source directory of all companies, consultants and organizations that are registered with the SFDA for the importation of medical devices. Website is as follows:
https://mdel.sfda.gov.sa/PublicModule/LicensedApplicants.aspx
MAJOR PROJECTS US$1.2 billion development of the King Khaled Medical City project in
Dammam covering a total area of 700,000 square meters and will include a 1,500-bed hospital, residential complex, research center and an international academy.
US$1.1 billion King Faisal Medical City, Southern Province, 1,350 bed capacity.
Prince Mohammed Bin Abdulaziz Medical City, Northern Province, 1,000 bed capacity.
King Abdullah Medical City, Mecca, 1,350 bed capacity.
Jeddah HealthCare Park, 263 bed tertiary care hospital, 60 bed hospital for Bone & Joint and a standalone diabetes and hypertension specialized medical center. Part of Prince Sultan Cultural Center.
STATE OF KUWAIT MARKET
HEALTHCARE SECTOR
15 Public Hospitals The government of Kuwait is
currently operating 15 general and specialized hospitals.
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
HOSPITAL BEDS
Al-Adan General Hospital 982 Al-Amiri General Hospital 496 Al-Jahra General Hospital 846 Al-Sabah General Hospital 486 Farwaniya General Hospital 931 Mubarak General Hospital 694 Al-Razi Orthopedic & Rehab Hospital 264 Chest Diseases Hospital 290 Ibn Sina Neurology& Neurosurgery Hospital 364 Infectious Diseases Hospital 196 Maternity Hospital 416 Natural Medicine and Rehab Hospital 69 The Psychiatric Hospital 764 Kuwait Allergy Center 36 Kuwait Cancer Control Center 191
Total 7095
HEALTHCARE SECTOR
12 Private Hospitals
The private sector is expected to grow moderately in the coming
years.
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
HOSPITAL BEDS
Al-Mowasat Hospital 106 Hadi Hospital 101 Dar-Alshifa Hospital 112 Al- Rashid Hospital 81 Al-Salam Hospital 169 London Hospital 60 Taiba Hospital 60 Royale Hayat Hospital 61 Al-Orf Hospital 64 Al-Omooma Hospital 58 Al-Seef Hospital 105 Alia Hospital 61
Total 1038
HEALTHCARE SECTOR
1Al-Ahmadi HospitalManaged by Kuwait Oil Company
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
HOSPITAL BEDS
Al-Ahmadi Hospital 209
HEALTHCARE SECTOR
1Jaber Al Ahmed
Armed Forces HospitalManaged by Kuwait’s Ministry of Defense
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
HOSPITAL BEDS
Jaber Al Ahmed ArmedForces Hospital 260
HEALTHCARE SECTOR
80%
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
The GOK is responsible for over 80% of the total investment in the sector. Kuwait is building well-equipped hospitals, specialized centers, and new laboratory and surgical facilities. The private healthcare sector are estimated to take a share of 15-20% of the healthcare spending.
HEALTHCARE SECTOR
Between 1995 and 2013, Kuwait’s Ministry of Health operating budget has increased from USD 895 million (KD 253 million) to USD 4.5 billion (KD 1,294 million). If the Compounded Annual Growth Rate (CAGR) stabilized at 7%, Kuwait’s Ministry of Health operating budget will reach about USD 18 billion (KD 5 billion), by 2030. Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
HEALTHCARE SECTOR
Between 1995 and 2013, Kuwait’s Ministry of Health per capita expenditure has increased from USD 456 (KD 129) to USD 1,175 (KD 332). At the projected increase rate, the per capita expenditure will reach USD 3,540 (KD 1,000) by 2030.
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
HEALTHCARE SECTOR
However, the Percentage of MOH expenditure compared to the overall Government of Kuwait expenditure appear to have been comparable. This clearly reflects that healthcare expenditure budget appropriation is corresponds with the overall government budget, which is clearly depends on oil prices and revenues.
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
HEALTHCARE INFRASTRCTUREPROJECTS
$4.4 Billion
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
In 2012, the Ministry of Health and the Ministry of Public Works announced a USD 4.42 billion (KD 1.250 billion) project to replace and/or expand nine operating hospitals (five general hospitals and four specialized hospitals) within the next ten years.
In addition to the current capacity of 7,000 beds, this will add an additional:
Approx. 5400 beds Approx. 150 Operating rooms Approx. 500 Outpatient Clinics
BEST PRODUCTS & SERVICES
There is large potential in Kuwait’s healthcare industry for U.S. companies offering medical-dental-lab equipment, general hospital supplies, pharmaceutical products and specialized systems and applications. Additionally, there is demand for unique products and new technologies, such as laser-treatment, nanotechnology and molecular medicine. Laboratory testing is also a growing segment and will require testing equipment and disposable tests. Surgical instruments are in high demand, as well as diagnostic or laboratory equipment in the fields of orthopedics, trauma care, ophthalmology, cardiology, oncology, radiology or radiotherapy and healthcare information. Medical services such as project management, health care consulting, human resource development, hospital administration, and technology transfers are and will continue to be in demand.
REGULATIONS OF MEDICAL DEVICES
Generally, there are no special classification requirements or special restriction for the importation of products.
Regulations of Medical Devices are conducted by the Ministry of Health.
For more information, please contact:Directorate of PurchasingMinistry of Health, State of KuwaitTel: +965 2486 3736Fax:+965 2486 3560
CUSTOMS DUTY
5%Customs Duty
For detailed information see, http://www.customs.gov.kw/english
Medical Equipment and Supplies?: 5% customs duty on most imported medical equipment and supplies except the following categories: Medical Supplies (H.S. Codes 30 05 and 30 06).
Tax Rate?: A flat tax rate of15% as of 2008.
Who is Taxed?: Foreign entities carrying on trade or
business either directly or through an agent
Foreign entities share in local company, other than a company listed in the Kuwait Stock Exchange.
Individuals are not taxed Kuwaiti / GCC share in an entity is not
taxed.
Contact us today to connect with a world of opportunity.
export.gov | 800.USA.TRADE
John SimmonsCounselor for Commercial AffairsRegional Senior Commercial Officer for the [email protected]
The North Africa and Levant Region HealthCare Sector
NAL Region:Algeria, Egypt, Jordan, Lebanon, Libya, Morocco and Tunisia
Plus the West Bank & Iraq
NAL Region Healthcare Market Statistics:
• Population – 183 million
• GDP - $763 billion
• Healthcare Sector Market Value - $30 billion
• The healthcare equipment, services, and
technologies expansion in the region is
expected to grow at an annual rate of 5 - 8% in
2014.
NAL Region Market Best Prospects:
•Medical equipment and supplies, including diagnostic and imagery equipment
• Hospital and outpatient clinic design
•Laboratory Equipment
•Hospital Management
•Cosmetic and Plastic Surgeries
•Healthcare Management Systems, including E-Health
Opportunities
• The Egyptian government plans to develop 26 new hospitals in 2014. And is working to build and design a Medical City that will aim in attracting medical tourism into Egypt.
• The Moroccan government is planning to build four Hospital University Centers by 2018, as well as develop emergency and mobile hospital units.
• The Jordanian government plans to expand the “e-health initiative system” piloted in 2011 to public hospitals and beyond, including the storage, retrieval and updating of electronic health records of patients cared for by participating healthcare facilities.
• The Algerian government plans to construct 200 new public hospitals and private clinics throughout the country over the next decade will increase demand for medical equipment and supplies, as well as medical construction services and hospital management services.
Healthcare Trade Mission toEgypt, Jordan, & IsraelDate: May 16–21, 2015
Venue: Cairo, Egypt; Amman, Jordan; Tel Aviv, Israel
With an Optional West bank Stop
Mission Description
The United States Department of Commerce, International Trade Administration, is organizing a healthcare equipment, services, and technologies business development mission to Egypt, Jordan and Israel, with an optional stop in the West Bank.
Why Join the Trade Mission?
The purpose of the mission is to introduce representatives from U.S. firms and healthcare related trade associations to the region and to promote exports of U.S. healthcare products and services. Delegates will receive market briefings and participate in customized meetings with prospective partners.
Why the North Africa/Levant Region
For More Information:
Patricia Molinaro 973-645-4682 [email protected]
Contact us today
U.S. Commercial ServiceNorth Africa and Levant Region
Iraq
West Bank
White House Priority
45
04/18/23
Doing Business in Africa (DBIA)
46
04/18/23
Why Sub-Saharan Africa?
47
04/18/23
Growing Sectors
48
04/18/23
Growing Markets
49
04/18/23
21 Partnership Posts
Health StatusSome Facts and Stats
Population: 52.8 million (2013); skewed towards the young
Life Expectancy: 54 years / 55 years Under 5 mortality rate: 45 per 1,000 births
(2012) Maternal deaths: 140 per 100,000 (2013) Heavy disease burden: HIV/AIDS and TB Rise in chronic disease, e.g. Cancer and
Diabetes
Health Pulse SWOT
Opportunities•Public-Private Partnership growth•Imports = 95%•Rising Black middle class•NHI = further investment in public health system•SAG health funding set to increase in real terms by 1% per year FY 2016 – 2017•HIV treatment expansion should reduce pressures on public healthcare system
Threats•Public health policy vs. Politics•Cronyism and corruption•Brain Drain•Depreciating Rand makes imports less affordable•Complicated regulations and very slow registration process
Source: BMI
Health PulseSWOT
Strengths•Wealthiest African economy•Best healthcare system in SSA•Strong, sizeable private sector•Highly trained •Centers of excellence•Well-trained health workers
Weaknesses•Poor infrastructure in rural areas•Chronic shortage of personnel•Poorly organized•Rural facilities grossly under-used•HIV/AIDS overburdening system•Private healthcare out of reach for majority of population•Purchasing procedures complex and fragmented
Source: BMI
Kenya: Healthcare Emerging Trends
Strong GoK focus - total e-Government approach Defined e-Health policy – “Kenya National e-Health Strategy 2011-
2017” 5 Pillars:
1. Telemedicine2. HMIS (current focus)3. Information for Citizens4. mHealth5. E-Learning
GSMA - 52-supported mHealth initiatives/services 2011: Safaricom/“Call-a-Doc” mHealth service “Daktari1525” –
enables subscribers call doctors 24/7 Kenya’s relatively high mobile penetration rate - over 31 million
subscribers Other private sector-led initiatives: ZiDi™ - a total e-Health
solution
Questions?
Thank you for participating on today’s webinar!
See you at Arab Health 2015