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1 DUBAI 2019 HEALTHCARE GUIDE A Healthy Growth Opportunity
1
DUBAI
2019
HEALTHCAREGUIDE A Healthy
Growth Opportunity
Report dated December 2018
WHYDUBAI?
TRADE EVENTS
OVERVIEW FUTURE GROWTH
GOVERNMENT SUPPORT
03 04
09 12
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CONTENTS
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With its world-class medical facilities infrastruc-ture and a burgeoning number of public and pri-vate healthcare companies providing excellent service, Dubai is fast becoming a major interna-tional hub for the global healthcare industry. Du-bai is already home to the world’s largest medical free zone, Dubai Healthcare City (DHCC). The de-velopment boasts 160 clinical partners including hospitals, outpatient medical centres and diag-nostic laboratories across 150+ specialties with licensed professionals from almost 90 countries. The sector is also served by 28 private and six pub-lic-sector hospitals.
1OVERVIEW
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Dubai is ideally placed to tap into a UAE market which boasts an average of US$1,200 in healthcare spending per capita, placing the country in the world’s Top 20. Globally renowned hospitals, outpatient medical centres and diagnostic laboratories such as Johns Hopkins-associated hospital Clemenceau Medical Centre and Moorfields London have launched facilities in Dubai to capitalise on the strong projected growth in the healthcare market anticipated to reach US$19.5 billion by 2020.
$1,200average spending on healthcare per
capita
$19.5Bprojected value of healthcare market
by2020$1.08Bcurrent value of medical device
market
UAE born and listed in London Stock Exchange 2014
$105.7Mprofit in 2017
56%year-on-year
increase
NMC HEALTHCARE
OVERVIEWH
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With the UAE’s current US$1.08 billion medical device market value the emirate is fast establishing a regional leadership in the lucrative healthcare sector. UAE-born NMC Healthcare was listed in London Stock exchange in 2014 and three years later reported profits of US$ 105.7 million, with a year-on-year increase of 56%.
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OVERVIEW
The sector’s development has helped establish Du-bai as a major internation-al medical tourism desti-nation with a stated goal to generate US$708 million annually by 2020. From 2012 to 2016 the number of medical tourists who visited Dubai for treatment grew from 107,000 to 326,000 and revenues in-creased from US$177 mil-lion to US$381.1 million. The target is to attract 500,000 medical tourists by 2020.
MAJOR HEALTHCARE DESTINATION
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Dubai-based healthcare providers can count on the city’s proximity and accessibility to the Middle East and GCC markets as well as Africa and Asia. More than a third of medical tourists come from Asian countries, Arab and GCC countries contribute 31% of the total whereas a significant 15% of patients visit Dubai from Europe. The Gulf region’s healthcare mar-ket is expected to be worth US$71.3 billion by 2020, with the UAE’s share predicted to reach US$ 19.5 bil-lion by the end of the decade.
MEDICAL TOURISTS INCREASE
1/3 of medical tour-ists come from Asian countries
2016
2020 Target
2012
326k
500k
107k
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FUTURE GROWTH
The UAE healthcare market is expected to expand to $20 billion by 2020. Dubai Health Authority (DHA) continues to roll out its current 12-year master plan, which includes the addition of 40 primary health-care centres and three new hospitals. There are also plans to develop a new 1,000-bed medical complex complete with outpatient clinics, a five-star hotel, and mixed-use facilities.
There are many factors encouraging investment in new developments, including Dubai’s growing population and its focus on becoming a glob-al medical tourism hub. Other factors include its proximity to a lucra-tive GCC market, high health insurance penetration and its stated de-termination to establish a reputation as a leading medical research centre which incentivises and encourages the use of innovative tech-nologies in patient treatment. The combined effect of these factors has led to the number of hospital beds increasing from 1,448 in 2012 to 2,434 beds in 2016.
The medical device industry, with a forecast-ed CAGR of 8.2%, and pharmaceuticals, with a predicted average annual growth of 8% in medicine expenditure, are also two of the priority sub-sectors listed under the 2030 Dubai Industrial Strategy, which aims to el-evate the emirate as a global platform for knowledge-based, sustainable and innova-tion-focused businesses. Dubai aims at hav-ing 34 indigenous pharmaceutical manufac-turing factories by 2020. The market value of the city’s pharmaceutical industry is set to go up to US$6.8 billion by 2025 whereas it stands at US$2.6 billion currently.
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8.2%Medical device industry
CAGR forecast
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FUTURE GROWTH
There is an increasing demand for qualified aesthetic surgeons, and professionals qualified in Lasik, dentistry, and rejuvenation treatments. Due to the increasing population of the elderly and the abundance of chronic diseases, long-term care facilities are also in demand as well as home care services by private providers.
The medical landscape is on track to become technology-driven with the adoption of re-cent innovations. Armed with latest tech-niques such as 3-D printing and the use of Artificial Intelligence (AI), the sector can be-come a critical tool in the city’s development as one of the leading healthcare centres in the world.
Authorities in Dubai expect telemedicine to grow rapidly citing studies in the US where it is expected to grow from 350,000 patients in 2012 to 7 million in 2018. Other areas where Dubai is taking initiatives to apply advanced technology in healthcare include 3D Model-ling, Robotic Pharmacy, Digitisation, Health Apps and Smart Fitness.
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TECHNOLOGY DRIVES DEVELOPMENT
DUBAI INITIATIVES FOR ADVANCED TECHNOLOGY IN HEALTHCARE
• 3D Modelling
• Robotic Pharmacy
• Digitisation
• Health Apps
• Smart Fitness
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New healthcare facilities are being built to serve upcoming commu-nities, while others are expanding to serve already established com-munities and market niches. ln 2015, Mediclinic announced the planned construction of a new 200-bed, US$190.5 million hospital to cater to Dubai South, the 145-sq-km urban development close Dubai World Central and the site of Expo 2020 Dubai. The hospital is likely to start operations in 2019 and is expected to employ over 800 staff members.
A three-way partnership between Dubai’s Al Tayer Group, UK-based investment manager Ashmore Group and King’s College Hospital (KCH) London is behind the development of KCH Dubai hospital. Construc-tion on the US$199.8 million project began in November 2016 and opened in late 2018. KCH Dubai will be among the first in the region to offer liver transplants and will also focus on four main specialty areas of treatment - pediatrics, endocrinology, orthopedics, and obstetrics and gynecology..
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NEW HOSPITALS
FUTURE GROWTH
200beds
145km2
urban development
800staff
members
2019target
opening
$190.5Mplanned construction of Mediclinic hospital in Dubai South near DWC
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In April 2016, Dubai Health Authority launched the world’s first comprehensive electronic medical tourism portal, Dubai Health Experience (www.dxh.ae). The comprehensive portal offers access to an exhaustive menu of health and related ser-vices including wellness, ophthalmology, ortho-pedics, physiotherapy, and other specialised fields. Currently, 45 healthcare providers are listed through the easy-to-navigate portal, which also has its own Android app. The initiative is also en-ticing inbound medical travellers with the provi-sion of discounted Emirates airfares, visa servic-es, and hotel partner recommendations.
With 15 strategic programmes and 100 initiatives to be implemented, the DHA is working to reshape Dubai’s ‘health ecosystem’.
3GOVERNMENT SUPPORT
Dubai Health
Experience www.dxh.ae
world’s first comprehensive electronic
medical tourism portal
45listed providers
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Dubai has a strong health regulation framework and this has helped ensure quality healthcare, which, in itself is a catalyst for medical tourism. Dubai Health Strategy 2021 ensures that patients have access to continuous quality care, with an emphasis on in-novation. The strategy outlines ten initiatives to de-liver solutions to long-term care, rehabilitation, home and remote care, telemedicine and new technologies and pharmaceuticals.
Further initiatives have been grouped under the pre-vention and healthy Iifestyle programme, including enhanced school health campaigns, the develop-ment of health awareness in the community and a greater emphasis on health education in the school curriculum. Going forward, there will also be a drive to improve vaccination campaigns and awareness of communicable diseases, as well as the introduction of personalised genetic profiling.
GOVERNMENT SUPPORT
HEALTH REGULATION FRAMEWORK
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Artificial Intelligence (AI) technology can also reduce the cost of service, and also free up more time for healthcare professionals. At the end of 2017, Du-bai Hospital introduced a robot phar-macist that is capable of storing up to 35,000 medications and delivering 12 prescriptions per minute.
GOVERNMENT SUPPORT
$463M
Dubai’s 3D printed medical products expected market
value by 2025
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INNOVATION IS KEY
A large section of DHA’s Dubai Health Strat-egy 2021 focuses on innovation with an em-phasis on cutting-edge technology and au-tomation. The first 3D-printed prosthetic leg developed in the region was revealed at the 2017 Arab Health Forum. Currently, pros-thetic limbs can cost up to US$50,000 a piece, but 3D-printed limb technology shows prom-ise that the price can be reduced significant-ly. Dubai’s 3D printed medical products mar-ket is expected to be valued at US$463 million by 2025 and the average cost of a cus-tom-made limb anticipated to be priced at just US$105.
35,000
medications stored by robot pharmacist
LOCATION & CONNECTIVITY• Dubai is a key connecting hub between the markets
of the East and West Ideally located to bridge the cru-cial time zone gap between the markets of the East and West to enable 24/7 services and connectivity.
• Easily accessible through two international airports – Dubai International (DXB) and Dubai World Central (DWC) – within a 4 hour flight of one-third of the world’s population, and within 8 hours of two-thirds.
•90 airlines operate 6,500 flights a week from DXB, to 240 destinations.
•15 passenger carriers operate an average of 153 flights weekly to more than 30 international destina-tions across 10 countries from DWC.
•DXB passenger numbers are projected to reach 103.5 million by 2020 while passenger traffic across Du-bai’s two primary airports is forecasted to rise to 200 million by 2030.
• Home to the world largest manmade port – Jebel Ali – a premier gateway for over 90 weekly services connecting more than 140 ports worldwide. Expan-sions currently underway at the Port will bring total handling capacity to 22.1 million TEU by 2018.
• With its diverse and mature consumer base, Dubai has a proven track record of being the launch-pad to test and expand operations across the wider Middle East, Africa and South Asia.
• Non-oil trade between Dubai and Africa is valued at US$34billion having amounted to US$192 billion over the 2012-2017 period.
• Non-oil trade between Dubai and India reached US$27 billion in 2017, representing 7.6 per cent of Dubai’s total non-oil foreign trade for the same year, and is projected to increase by 5% to US$30 billion by 2020.
4WHYDUBAI?
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6,500 flights a week
DUBAI A KEY HUB
$34B non-oil trade value
with Africa
240 destinations
World largest man-
made port connecting
140 worldwide
WHY DUBAI?H
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TALENT POOL
•Dubai is an incubator for exceptional home-grown talent and a magnet for the world’s most ambitious, sophis-ticated and forward-thinking scien-tists, engineers, technologists and innovators who yearn for a rewarding, career-enhancing ecosystem to thrive, prosper and change the world.
•Dubai ranks 6th globally in a list with the most attractive cities for a global workforce according to Boston Con-sulting Group.
•The Dubai government is implement-ing talent attraction strategies de-signed to increase its intake of knowl-edge workers by 40% by 2021.
•Dubai is home to over 200 nationali-ties, bringing together one of the world’s richest and most diverse pool of languages and skills to suit any business.
•The UAE ranks 4th globally in availa-bility of skills and competencies in the talent pool and 5th worldwide in the Appeal index, which measures the extent to which a country taps into the overseas talent pool, according to the IMD World Talent Ranking.
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WHY DUBAI?
FOREIGN DIRECT INVESTMENT
• Dubai ranks among the top 10 international cities in attracting foreign investment esti-mated at US$7.4 billion in 2017, an increase of 7.1 per cent compared to 2016.
• Liberal and pro-investment policy decisions had gone a long way in setting Dubai on a path towards achieving comprehensive and sustainable development based on innova-tion and high productivity.
• Foreign direct investment has played an in-strumental role in realising these achieve-ments through its contribution to job crea-tion and technology diffusion.
• Dubai is ranked #1 in the world in terms of FDI technology transfer and #3 as loca-tion for AI & Robotics.
Top 10 international
cities
Foreigninvestment
$7.4Bin 2017
Increase7.1%
DUBAI
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5TRADE EVENTS
Arab Health presents the
latest insights in the
healthcare industry
Arab Health is the largest gathering of healthcare and trade professionals in the MENA region. The 2018 event welcomed more than 4,200 exhibiting companies and 103,000 attendees from over 150 countries, and the 2019 edition is set to be bigger than ever. Accompanying the exhibition are a num-ber of business, leadership and Continuing Medical Education (CME) conferences providing the very lat-est updates and insights into cutting-edge proce-dures, techniques, and skills.
The event is held annually at theDubai World Trade Centre
ARAB HEALTH
103,000 attendess
150 countries
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TRADE EVENTS
BUILDING HEALTHCARE INNOVATION & DESIGN SHOW
The Building Healthcare Innovation & Design Show is the Middle East’s largest event for the develop-ment, design, and management of healthcare facil-ities. It attracts industry professionals including ar-chitects, government facilities, and key decision makers, and in 2017, more than 3,000 people attend-ed the event.
More than 150 companies and brands are expected to visit the exhibition, showcasing all the latest ser-vices and innovations for healthcare facilities. Visi-tors will also be able to attend a series of conference sessions and learn about all the key stages of the healthcare build lifecycle.
The event is held annually at theDubai World Trade Centre
150 companies
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Everyting about design and
development of healthcare
facilities
