Transcript Slide 1

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 Manufacturing
U.S. Department of Commerce
International Trade Administration
U.S. leadership in medical
technologies is widely recognized
Arab Health is a key venue to showcase our expertise

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
HEALTHCARE IN THE GCC
U.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 $16.8bn & is expected to grow at a
compound annual growth rate (CAGR) of over 16%
through 2014.
HOSPITALS IN THE UAE
Emirate
Total
Population
Abu Dhabi
2.5 mil
14
25
4,226
Dubai
2.1 mil
6
32
3,857
Sharjah
1.5 mil
5
10
898
Ras Al Khaimah 300,000
4
1
562
Ajman
240,000
1
2
189
Fujairah
558,000
2
1
358
Umm Al
Quwain
606,000
1
----
606
33
71
10,696
TOTAL
*Source: U.S.-UAE Business Council Report
Government
Hospitals*
Private
Hospitals*
No. of Beds*
HEALTHCARE EXPENDITURES
Healthcare Expenditure Indicators*
DESCRIPTION
2011
2012
2013
Health Expenditure
(US$bn)
12.94
14.74
16.35
Health Expenditure
(US$bn), %of change y-o-y
17.4
13.9
10.9
1,449.7
1,601.5
1,749.5
Health Expenditure per
capita (US$)
Health Expenditure (%GDP)
*Source: World Health Organization
3.47
3.65
3.83
HEALTHCARE EXPENDITURES
Healthcare Governmental Indicators*
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
*Source: World Health Organization
HEALTHCARE EXPENDITURES
Healthcare Private Indicators*
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
*Source: World Health Organization
DRUG MARKET EXPENDITURES
2013
Drug Market (2013) *
US $
Prescription Drugs
1.57 bn
Patented Drugs
1.26 bn
OTC Drugs
350 mil
Generic Drugs
300 mil
*Source: United Nations Comtrade Database
U.S. EXPORTS TO THE UAE
HS
CODE
DESCRIPTION
U.S. DOLLARS
2012
30
Pharmaceutical Products
90
Optic, photo, medical or
surgical instruments
TOTAL
GRAND TOTAL
EXPORTS
% OF MARKET SHARE
62,172,638
510,829,316
573,001,954
20,219,249,993
3%
2013
73,391,219
450,355,957
523,747,176
% OF SHARE
2014
81,972,368
526,868,146
608,840,514
22,774,849,871 20,385,344,836
2%
% OF
CHANGE
2013 /
2014
3%
2012
2013
2014
100
100
100
11.69
100
100
100
16.99
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 PIPELINE
Dubai
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40 healthcare centers
6 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 Ali
Al 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 Road
New Rashid Hospital by DHA (300 beds +160 beds for emergencies)
The University Hospital: Fakeeh Medical University at the Dubai Silicon
Oasis
PROJECTS IN THE PIPELINE
Abu Dhabi / Al Ain / Western Region

Al Bustan Speciality Hospital - Mussafeh

Bin Omeir Hospital

Burjeel Medical City (a part of Mohammad Bin Zayed City) by VPS
Healthcare

Burjeel’s Reem Island Daycare Centre

Dialysis Center

SAS Al Nakheel Hospital

SKMC: 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 Hospital

Al Towayya Ambulatory Healthcare Center

Al Ain Hospital (a new replacement), increasing bed capacity from 412 to
713
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Ghayathi Community Hospital in the Western Region

Al 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
HOSPITAL
15 Public
Hospitals
The government of Kuwait is
currently operating 15 general and
specialized hospitals.
Al-Adan General Hospital
Al-Amiri General Hospital
Al-Jahra General Hospital
Al-Sabah General Hospital
Farwaniya General Hospital
Mubarak General Hospital
Al-Razi Orthopedic & Rehab Hospital
Chest Diseases Hospital
Ibn Sina Neurology& Neurosurgery Hospital
Infectious Diseases Hospital
Maternity Hospital
Natural Medicine and Rehab Hospital
The Psychiatric Hospital
Kuwait Allergy Center
Kuwait Cancer Control Center
Total
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
BEDS
982
496
846
486
931
694
264
290
364
196
416
69
764
36
191
7095
HEALTHCARE SECTOR
12 Private
Hospitals
The private sector is expected to
grow moderately in the coming
years.
HOSPITAL
BEDS
Al-Mowasat Hospital
Hadi Hospital
Dar-Alshifa Hospital
Al- Rashid Hospital
Al-Salam Hospital
London Hospital
Taiba Hospital
Royale Hayat Hospital
Al-Orf Hospital
Al-Omooma Hospital
Al-Seef Hospital
Alia Hospital
106
101
112
81
169
60
60
61
64
58
105
61
Total
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
1038
HEALTHCARE SECTOR
HOSPITAL
1
Al-Ahmadi Hospital
Managed by Kuwait Oil Company
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
Al-Ahmadi Hospital
BEDS
209
HEALTHCARE SECTOR
HOSPITAL
1
Jaber Al Ahmed
Armed Forces Hospital
Managed by Kuwait’s Ministry of Defense
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
Jaber Al Ahmed Armed
Forces Hospital
BEDS
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 INFRASTRCTURE
PROJECTS
$4.4
Billion
 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:
Source: Kuwait’s Ministry of Health (www.moh.gov.kw)
 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 Purchasing
Ministry of Health, State of Kuwait
Tel: +965 2486 3736
Fax:+965 2486 3560
CUSTOMS DUTY
5%
Customs Duty
 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.
For detailed information see, http://www.customs.gov.kw/english
Contact us today
to connect with a world of opportunity.
export.gov | 800.USA.TRADE
John Simmons
Counselor for Commercial Affairs
Regional Senior Commercial Officer for the Gulf
[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 to
Egypt, Jordan, & Israel
Date: 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 Service
North Africa and Levant Region
Algeria
[email protected]
Egypt
[email protected]
Iraq
[email protected]
Jordan
[email protected]
West Bank
[email protected]
Lebanon
[email protected]
Libya
[email protected]
Morocco
[email protected]
Tunisia
[email protected]
White House Priority
President Obama’s Strategy toward
Sub-Saharan Africa
The “world’s next major economic success story.”
Promoting U.S. trade and investment: a
cornerstone of the Strategy
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7/17/2015
Doing Business in Africa (DBIA)
Holistic U.S. government strategy
Ensuring that U.S. companies are capitalizing on
opportunities to trade and invest in sub-Saharan Africa
Trade Promotion
Access to Financing
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Why Sub-Saharan Africa?
2nd fastest growing region in the world.
6% projected growth rate in 2014, outpacing global average
growth.
In 2013, U.S. exports: $24 billion; $1.5 billion more in goods
than 2012.
Major new investments from Walmart, FedEx, Proctor &
Gamble and Marriott Hotels, etc.
Yet, exports to Africa are 1.5% of total U.S. global exports.
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Growing Sectors
Infrastructure development
Agriculture
Mining
Telecommunications
Healthcare
Banking
Education
Consumer Goods
Retail
Food Industry
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Growing Markets
World’s fastest-growing markets: Ethiopia,
Mozambique, Tanzania, Congo, Ghana, Zambia,
and Nigeria
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21 Partnership Posts
Health Status
Some 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
Threats
•
•
•
•
•
•
•
•
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
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 Pulse
SWOT
Strengths
Weaknesses
•
•
•
•
•
•
•
•
•
•
•
•
Wealthiest African economy
Best healthcare system in SSA
Strong, sizeable private sector
Highly trained
Centers of excellence
Well-trained health workers
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
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Kenya: Healthcare
Emerging Trends
Strong GoK focus - total e-Government approach
Defined e-Health policy – “Kenya National e-Health Strategy 20112017”
5 Pillars:
1. Telemedicine
2. HMIS (current focus)
3. Information for Citizens
4. mHealth
5. 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