Saudi-German Healthcare Newsletter

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1 Saudi-German Healthcare Newsletter Editorial Dear readers, On behalf of the German-Saudi Arabian Liaison Office for Economic Affairs, I would first and foremost like to wish all our of readers a healthy, successful New Year. The next twelve months are looking to be industrious, productive ones that will leave the Saudi healthcare system bigger and better than ever before. During the first week of January, the Kingdom presented a record-breaking 2013 budget of SR 820 billion, or 19 percent more public sector spending than in In 2013, SR 100 billion have been allocated to healthcare, 16 percent more than in last year. That is exciting news for everyone involved in the Kingdom's healthcare industry, including companies in Saudi Arabia and abroad that supply hospitals and clinics, doctors and dentists, and provide goods and services for establishing healthcare infrastructure. In addition to more than a hundred on-going projects, dozens of new hospital, medical center and medical city projects are due to get underway this year. Growth in the number of added beds is in the tens of thousands. Also, the structure of the industry is evolving. At the moment, 70 percent of all healthcare sector projects are still public, but private sector activity in this field is rising rapidly. That means there will be a broad range of potential and opportunities for companies to work on public and private projects in With these trends in mind, "Health - Made in Germany" is scheduling its 2013 activities. At least one business delegation will travel to Saudi Arabia during this year. Additionally, several events, trade fairs and information days in Germany will round out the opportunities for mutual exchange and support of businesses interested in working with Germany and in the Kingdom. For details, please see the event calendar at the end of this newsletter. Through "Health - Made in Germany," the German federal government, Germany Trade and Invest (GTAI) and the Delegation of German Industry and Commerce in Saudi Arabia, together with the Council of Saudi Chambers and the Saudi Chambers of Commerce and Industry act as the mutual gateway for business to business and government to business contacts. Since 2010, "Health - Made in Germany" has focused on Saudi-Arabia with quarterly visits to the Kingdom and regular events in Germany. Tank you for your time Sincerely Yours, Benjamin Godel Deputy Delegate of German Economy for Saudi Arabia and Yemen 1

2 Saudi-German Healthcare Newsletter Contents Editorial 1 Call for submissions 3 Newsflash Saudi Arabia 3 Newsflash Germany 6 In profile: Mr. Ali Attiya Al-Ghamdi 8 In profile: Henning Lensch 9 Calendar of Business Events 10 Trade Fairs in Saudi Arabia Trade Fairs in Germany Contact 11 2

3 Call for submissions: Saudi Arabian-German cooperation If you work for a company or institution in the healthcare sector in Saudi Arabia or Germany and would like to tell our readers about it, please feel free to submit a description of your company or institution and your story of successful Saudi-German cooperation. * *(Submission does not guarantee publication, which is at the discretion of the publisher Newsflash Saudi Arabia Ministry of Health announces annual budget for healthcare sector January 6, 2013 Arab News RIYADH Health Minister Dr. Abdullah Al-Rabeeah announces 2013 budget The SR billion 2013 budget allocation for the Health Ministry, percent more than that of 2011, will boost health services in the Kingdom, said Health Minister Dr. Abdullah Al-Rabeeah on January 5. He said the new budget would enable the ministry to construct more medical cities, hospitals and primary health care centers across the country. "This will contribute to meeting the health requirements of citizens and improving health services in the Kingdom," he said. Saudi Arabia announced last week a record surplus budget for 2013, projecting expenditure at SR 820 billion and revenues at SR 829 billion. It has allocated SR 285 billion for new projects. Custodian of the Two Holy Mosques King Abdullah, who signed the budget, disclosed plans to establish five new medical cities and 19 new hospitals. Spelling out this year's budget allocations, Al-Rabeeah said the ministry would set aside SR 25.2 billion for salaries and SR billion for operations, cleaning and maintenance contracts. "We have allocated SR 7.76 billion for medicine, training and catering, and SR 5 billion for new development projects," he added. Al-Rabeeah said about 60 percent of the budget would go toward paying salaries. "This year's budget included the opening of 155 primary health care centers in all parts of the Kingdom," he pointed out. There will be an increase of SR 400 million in allocations for medicine and medical appliances to reach the total SR 4.55 billion. Funds of SR 400 million and SR 800 million have been set aside for training and catering respectively. "One of the most important features of the new budget is the opening of 20 new hospitals, which have been already provided with necessary medical equipment and furniture," the minister said. The new budget has made allocations for the 200-bed Al-Ansar Hospital in Madinah, a 500-bed psychiatric hospital in Makkah, a 200-bed psychiatric hospital in Baha, a 200-bed maternity and children's hospital in Gurayat and a 200-bed medical tower in Dammam. "At present 12 psychiatric hospitals and 17 maternity and children's hospitals are being build in various 3

4 regions of the Kingdom," the minister pointed out. "We also intend to establish a medical tower for accidents and emergency at Dammam Medical Tower, an outpatient clinics' tower at Qatif Central Hospital, and an emergency medical tower at Prince Abdul Aziz Hospital in Arar." He added: "We have got budget allocation to establish three tumor centers in Jazan, Hail and Al-Ahsa, each with a capacity of 100 beds, three cardiac centers in Jazan, Tabuk and Taif and six dental centers in Makkah, Al-Ahsa, Taif, Qatif, Al-Kharj and Samita with a total of 430 dental clinics," he said. Currently, there are five tumor centers and nine cardiac centers under the ministry. "We have already established four new dental centers in Dammam, Madinah, Al-Jouf and Najran while three dental centers are under construction in Tabuk, Qassim and Baha," the minister said. "These projects are in addition to 102 new hospitals being set up in various parts of the Kingdom and five medical cities ordered by Custodian of the Two Holy Mosques King Abdullah to provide specialized medical services," he said. Al-Rabeeah added: "Our ministry will leave no stone unturned to improve health services in the country by enhancing the quality of services at medical facilities, introducing new patient service programs and developing home medicine projects, preventive medicine, emergency services and clinical referral services." King Faisal Specialist Hospital and Research Center (KFSHRC) Jeddah expands January 1, 2013 Arab News JEDDAH SR 1.7 billion hospital deal inked Health Minister Dr. Abdullah Al-Rabeeah on December 31, 2012 signed a SR 1.77 billion contract to establish new headquarters for the King Faisal Specialist Hospital and Research Center (KFSHRC) in Jeddah. Custodian of the Two Holy Mosques King Abdullah has allocated two million square meters of land for the project, which includes a 630-bed hospital. It will have 150 beds for the intensive care unit, 46 operating rooms and 50 dialysis units Al-Rabeeah thanked King Abdullah for his generous support for the health sector. The national budget for 2013 has allocated SR 100 billion for the sector and includes establishment of 19 hospitals and five medical cities. The executive supervisor of the General Organization for King Faisal Specialist Hospitals and Research Centers, Qassim Al-Qasabi, said the new hospital would have advanced health care facilities. The CEO of KFSHRC in Jeddah, Dr. Tariq Lingawi, said the new hospital would have specialized centers for the treatment of tumors and heart disease. The project, which includes a children's hospital and a separate building for outpatient clinics, will be completed in three years. 4

5 AHK Publications Directory of German Companies and their Representatives in Saudi Arabia German companies' engagement in the biggest economy and market in the MENA-Region has grown rapidly during the last decade. Now more than 400 German companies are established in Saudi Arabia. German enterprises have successfully contributed to economic development in Saudi Arabia by investing, developing local expertise and transferring technologies and know-how.the Directory of German Companies and their Representatives by AHK Saudi Arabia lists all German companies doing business in the Kingdom, including their contacts in Saudi Arabia and Germany. New Directory of Saudi importing companies German companies' exports to Saudi Arabia have been rapidly increasing during recent years. For a successful export business, choosing the right importing company is crucial. For this reason, AHK Saudi Arabia published the new "Directory of Importing Companies" in order to assist companies in placing their products on the Saudi market. For more information about publications by AHK Saudi Arabia please see: Business & Legal Guide In depth information about the legal system is essential and often a key to success for companies interested in foreign business with Saudi Arabia.The new Business & Legal Guide Saudi Arabia covers practical and detailed information on the following topics: - Market Access (delivery transactions, trade agencies, sales & distribution etc.) - Foundation of an enterprise - Entry requirements and reporting procedures - Taxes and duties - Labor and social law - Industrial/intellectual property rights and competition law Contact: Christian Engels, Legal Affairs Phone: (0) Ext. 107 Mail: 5

6 Newsflash Germany German Pacemaker Sets Beat for World Record HALLE (SAALE) Doctors performing a routine examination on an 89-year-old woman were puzzled by their findings. Cardiologist Andreas Porsche and Surgeon Falk Sischka at the Helios Clinic in Eisleben discovered their patient had a pacemaker, but were unable to believe their eyes when they saw her medical records. The active implantable device had been regulating her heartbeat for 25 years. X-rays confirmed this. Ruth Hartung's pacemaker was one of the first to be mass-produced in what was then Communist East Germany, the GDR. The pacemaker's serial number Even though it had yet to miss a beat in a quarter of a century, doctors needed to replace it. Before they could put in a pacemaker of the latest generation, however, they needed some advice and tool that was no longer readily available. Before proceeding with the surgery, they had to find and contact the engineer who designed the device, Wolfgang Zobel. Back in the 1980s, one of the places Zobel worked was at the State-Owned Transformer and X-Ray Machine Plant in Halle, where he was head of the Prototype Department. Until he produced his design, East Germany had been forced to import pacemakers from the west, which depleted the country's supplies of hard currency. After the fall of the Berlin Wall and German unification, Zobel moved on to work for a leading western manufacturer. Looking back, he chalks it up to a stroke of luck that he was asked to work on building East Germany's first mass produced pacemakers. A graduate of Dresden's Technical University, Zobel told reporters from the daily newspaper, the Mitteldeutsche Zeitung, "Actually, at the beginning of the 1980s, I wanted to develop an artificial heart." Scarcity of all types of resources made the challenge of building the East German pacemaker greater than they would have been in a western economy. Yet the some of the materials used to make the device then the smallest of its kind have stood the test of time. Surgeons said the electrodes implanted with the original pacemaker in 1987 were in such good condition that they did not need to be replaced. It appears quality, innovation and years of committed service now have gone as putting at least one healthcare product Made in Germany into the Guinness Book of World Records. Survey shows German medical technology exports performing well Exports of German medical technology are going strong; indicate responses to a German Medical Technology Association (BVMed) survey conducted annually. This autumn, 101 BVMed members responded to the questionnaire. Most said the market abroad for German medical technology is thriving, particularly in Asia. At the same time, statistics show the industry is continuing to create jobs in Germany. Export rates are still over sixty percent, with BVMed statistics showing an export rate of 68 percent in the first six months of Nearly two-thirds of German medical technology companies were also able to hire more staff in Official business statistics showed that in 2011, the medical technology manufacturing sector had a total business volume of 21.4 billion euros and employed more than 175,000 people in Germany. BVMed said 6

7 sales grew at a rate of 4.4 percent in The industry continues to be a motor for job creation and an engine for economic growth, with BVMed saying that 37 percent of the companies expecting better business performance in The survey showed that most medtech companies still judge the economic conditions in Germany favorably. This news comes at a time when medical technology manufacturers in the US, one of Germany's rivals on the export market, are expressing concerns that tax policy and Medicare cuts could threaten innovation and mean the loss of tens of thousands of medtech industry jobs in the US. Find clusters of medical excellence on Internet platform The German Economics Ministry (BMWi) and the German Ministry of Education and Research (BMBF) have announced that a new Internet platform on the country's cluster policies is on line. The site (currently in German only) provides a comprehensive overview of Germany's federal and state government policies to promote the development of what are known as leading-edge clusters in technology and research. These group together regionally enterprises, research institutes and other stakeholders working in high-tech and innovative fields. Medical biotechnology and medical technology are among the fields for which Germany has existing, thriving leading-edge clusters. Many of these areas are working on projects that put them at the top of the global rankings in terms of innovation and product development. To illustrate the economic importance of Germany's leading-edge clusters when the platform was put online in January, German Minister for Economics and Technology Philipp Rösler said: "Clusters offer enormous competitive advantages, including improved division of labor and intensified exchanges of knowledge and experience. They increase the innovative force of the different players and as a result, ensure Germany remains and continues improving as a place to produce goods and services. In the current economic situation, this is of great significance for our country." The German Minister for Education and Research Annette Schavan said of the platform and cluster policy, "German clusters of excellence strengthen the innovative capabilities of the regions. Their success in bridging the gap between science and the economy is exemplary for all of Europe. The evidence of this is that researchers and experts from all over the world are drawn to these the clusters." 7

8 In Profile: Mr. Ali Attiya Al-Ghamdi The Head of the Medical Committee for Riyadh's Chamber of Commerce and Industry, Mr. Al-Ghamdi graduated from King Saud University's Faculty of Arts with a degree in Social Studies in During his university studies, he worked in many places like STC and the Security Forces Hospital Department of Social Relations. In the beginning of 2012, he was appointed as the Director of the Medical Committee in Riyadh Chamber of Commerce and Industry. Mr. Al Ghamdi explains the Medical Committee's objectives. He says, "Our work in the Medical Department of Riyadh Chamber of Commerce and Industry is aimed at achieving the general objectives of the Medical Committee and its subcommittees in a number of ways." Mr. Al-Ghamdi lists these as: Strengthening ties with responsible private health sector authorities and employees, Working together to find appropriate solutions to the problems faced by the private health sector, Implementing strategies to approach these by holding activities and events (seminars and lectures), Raising awareness of the importance of the private health sector in terms of economic and social development, Fostering scientific research and technical development studies to provide statistical data for the private health sector, Providing data and statistics and exchanging the information with the relevant authorities within and outside the Chamber, Sharing in the publishing and printing of guides and professional books related to the health sector, and Participating in committees and meetings with officials in the government and private health sectors in order to further private health sector development. 8

9 In profile: Henning Lensch The VBI Association of Consulting Engineers representative to "Health Made in Germany," has a life that is making him a citizen of the world. From offices in Munich and Singapore, Henning Lensch works on hospital and healthcare building projects. The 43- year-old says the choice of locations is strategic, because the two sites allow him to follow the projects of his company, RRP International, around the globe. He can keep in touch whether the work is in the Americas, Europe, Africa, the Middle East or even in Central and Southeast Asia. While studying to become an architect, Lensch opted early to focus on the specialized demands of healthcare architecture design and engineering. To do this, he attended schools in Germany, including one in Hamburg, and studied in Denmark as well. After gaining several years of experience working on hospital projects in Germany, Lensch as a partner of RRP architects + engineers in Munich, was able to obtain contracts for a number of international projects. His first were in India, the United Arab Emirates, and Dubai, followed by Saudi Arabia, Indonesia, Bahrain and Libya. At the same time, his activities have also taken him to the Americas, where he has worked on state-of-the-art laboratory buildings, a large university hospital extension and a complete renovation in Moldova. He has also been involved in many hospital projects employing the latest technologies in the Middle East, Africa and Southeast Asia. Working in the specialized area of healthcare design, Lensch, as an architect, learned from the start that only ongoing pursuit of knowledge and research ensures structures featuring the best, most appropriate, up-to-date, state-of-theart designs. Germany. Lensch is also the official German delegate to the global association of healthcare architects, the International Union of Architects' (UIA) Public Health Group. During the last decade he has also given many lectures at international conferences and university seminars. He has published articles in books, including "The Architecture of Hospitals," as well. Nevertheless, says Lensch, his real passion is working on projects on-site. The 43-year-old says he loves to supervise the building process in foreign locations. He finds working on international teams is a pleasure and a challenge. He says his aim is always to handle cultural misunderstandings and differing expectations professionally. Lensch says that he enjoys his journeys to different countries. Even after many years of travelling, he still finds it fascinating to meet new, interesting people and make friends and discover new, favorite spots and cultural highlights. Some of his best memories, he says, are desert evenings and nights in Saudi Arabia and UAE. Unique and outstanding hospitality, says Lensch, makes the Middle East one of the most special places on the globe. Lensch is also active in professional organizations such as the Architects for Hospitals and Healthcare Buildings (AKG) of the Association of German Architects (BDA) and the Association of Consulting Engineers (VBI), 9

10 Calendar for Business Events 2013 Events in Saudi Arabia January 2013 I Saudi Dental Society Conference May 2013 I Health Facilities Infrastructure Saudi Arabia, Riyadh Trade Fairs in Saudi Arabia 2013 Date Trade Fair April 2013 Medexpo, Jeddah May 2013 Saudi Medicare, Riyadh May 2013 Saudi ehealth Conference 2013 Trade Fairs in Germany 2013 Date March 2013 April 2013 Trade Fair IDS - Dental Show, Cologne ConHit, Berlin 3-4 September 2013 Hospital Build Europe 2013, Hamburg 10

11 Contact German-Saudi Arabian Liaison Office for Economic Affairs Futuro Tower, 4th Floor, Al Ma'ather Street P.O.Box: 61695, Riyadh: 11575, Kingdom of Saudi Arabia Phone: Fax: Web: 11

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