Arab Health 2015 Briefing

Transcription

1 Arab Health 2015 Briefing 8 December 2014

2 Welcome and Introduction Elodie Journet Deputy Consul-General & Trade Commissioner

3 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 Upcoming Arab Health 2015 activities

4 Austrade Focus Key Markets in MENA Main Focus: GCC UAE, KSA, Kuwait, Bahrain, Oman, Qatar; and Morocco On the Radar: Iran, Jordan and Tunisia Rest of MENA

5 Regional Snapshot UAE #1 Trading Partner ADIA a major investor in ports, roadways, hotels and real estate UAE Peaceful Nuclear Cooperation Agreement Over 40,000 Australian Expats Over 2000 Australian exporters 400 Australian Companies in MENA 147 flights/week 98,000 visitors from MENA ,000 students from GCC

6 United Arab Emirates Quinita Braggs Business Development Manager

7 Market Triggers 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

8 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) Substantial investments, including Dubai Healthcare City & DuBiotech

9 Skincare Market Demand UAE cosmetics sales to grow 24% Make-up products or colour cosmetics Men s grooming products Baby products Premium products and higher quality ingredients Increasing demand of Halal certified, natural and organic products. Source:

10 UAE Vision 2021 Achieve a world-class healthcare system 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

11 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 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 50 international medical conferences

12 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 Education & Training

13 Dubai Health Authority Jane Leanne Griffiths Associate Professor

14 Dubai Health Authority 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

15 GCC Experience and market entry advice Mr Aladin Niazmand Director TAHPI

16 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

17 Presence in the UAE 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

18 Work in the Health Sector in the UAE 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.

19 Tips for those new to export 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.

20 More tips 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

21 What has TAHPI achieved since 2007 in the UAE 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

22 Winner of Export Awards

23 Winner of Hospital Build Award Winner of a prestigious International Award in 2012 Best Initiative to Improve the Design Standard of Healthcare Facilities

24 Local Standards and Guidelines Author of Numerous Healthcare Design Standards & 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

25 Improve on International Offerings

26 Locally specific software development

27 Project Samples 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

28 Saudi Arabia Mr Mohammed Kamal Business Development Manager

29 Saudi Arabian Market Characteristics 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.

30 Saudi Arabia Market Drivers 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

31 Saudi Arabia - Opportunities Hospital design and hospital operation Generic and non-generic medicine Medical equipment Education and Training

32 Saudi Arabia - Challenges Centralised decision making process Lengthy registration process for medicine Lack of skilled employees

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41 Key Opportunities Government has allocated significant budget for the planned ex

42 India Ms Sangeetha Krishnamoorthy Business Development Manager

43 India a global economy US$ 1.7 trillion economy 3 rd largest economy in PPP terms after USA and China Australia s 4 th largest export market Expanding population of 1.2 billion

44 India: drivers in healthcare 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 Public vs private spend 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 Healthcare Spend as % of GDP

45 India - healthcare market - subsectors Market breakup by revenue Hospitals Pharmaceuticals Diagnostics Medical Equipment & supplies 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 India AUD 6 billion by year % of the devices are imported Medical Insurance & Tourism Penetration < 5% Medical Tourism AUD 2.2 billion by 2015.

46 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 & training)

47 India: What to expect? Perception of Australia Australian companies in India Major global competition What s good 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 Think long term

48 Events Bio Asia February 2015 Bangalore Bio February 2015 Australian Trade Commission s Innovation Showcase September 2015

49 Health and Life Sciences Team India Grace Ann-Lobo Investment Anlyst Bhavin Kadakia BDM Nicola Watkinson Senior Trade & Investment Commissioner Kylie Bell Trade & Investment Commissioner Sangeetha Krishnamoorthy BDM Elsy Samuel BDM

50 Upcoming activities Arab Health January 2015 Dubai International Convention & Exhibition Centre, UAE 27 January 2015 Australian Networking reception Timing 18:30 20:30 Venue Conrad Hotel, Dubai UAE Tailored services and visit programs MENA April 2015 (Dubai, Abu Dhabi, Riyadh, Kuwait, Morocco)

51 Engage Elodie Journet Trade Commissioner Dubai, United Arab Emirates E: Quinita Braggs Business Development Manager Dubai, United Arab Emirates E: Ismail Farag Business Development Manager Dubai, United Arab Emirates E: Adel Ghaly Business Development Manager Kuwait Sangeetha Krishnamoorthy Business Development Manager Hyderabad, India E: gov.au Visit: Like: Add:

52 Thank you