UAE HEALTHCARE INDICATORS - Mecomed...Dubai Health Authority (DHA) Regulator • Most developed...

UAE HEALTHCARE INDICATORSMarket Access Group

Report Q’4 2016

www.mecomed.com

CONTENT

➢ Key Healthcare Data

➢ Economical Forecast

➢ Key organization

➢ Healthcare Provision

➢ Healthcare Demand Driver

➢ Demands & Investment

➢ Health Insurance

➢ Medical Devices Market

➢ Opportunities

UAE MARKET OVERVIEW

For MECOMED member information only. This presentation does not constitute legal advice and may not be relied upon as such. Independent legal advice should be sought by members.

UAEMARKET

KEY HEALTHCARE DATA

Population: 9.2 million, with a decreased growth rate of 0.8% (2015) (Expatriates representing 89% of the population)


UAEMARKET

KEY HEALTHCARE DATA- FUNDING


UAEMARKET

ECONOMICAL FORECAST

➢ The UAE will undergo a notable over the coming years on the back of much lower oil revenues.

➢ The economy’s dependence on oil, is under 30% of the GDPNon oil economy will be main growth driver

➢ The real forecasted GDP growth is expected at 2.3% in 2016 and 2.4% in 2017 compared with 3.8% in 2015. The retrenchment in global energy prices that began in mid-2014 -and are persisting until at least 2018 - will continue to form a backdrop to the evolution of the UAE's economy.


UAEMARKET

ECONOMICAL FORECAST DATA


UAEMARKET

KEY ORGANIZATIONSOrganization Function Key Activities

Ministry of Health (MOH) Regulator and

operator

• Operates four undersecretariats:

➢ Public Health and Licensing, ➢ Support Services, ➢ Health Clinics and Centres➢ Hospitals

• Regulator of:

➢ Ajman, Fujeirah, Umm Al Quayaim, Ras Al Khaimah

• Main objectives of Healthcare sector improvement:

➢ to deliver health services & programs according to international standards

➢ to develop health facilities and ensure accessibility ➢ to promote healthy lifestyles;➢ to develop preventive health and disease control➢ To develop health policies and legislations➢ to ensure the delivery of all administrative services in

terms of quality, efficiency, and transparency standards.• supervise health programs and monitor health services in the

public and private sector

• manage, plan and formulate health policies

Health Authority Abu Dhabi (HAAD) Regulator • High ambitions for medical tourism development

• High investments in state run health facilities

Dubai Health Authority (DHA) Regulator • Most developed Emirate in Healthcare

• Combination of state and private run facilities

• Leader of Medical Tourism

• Execution of the Dubai Health Strategy 2013 - 2025 plan e.g.:

➢ Smart hospitals

➢ Mobile health services

➢ Smart technologyFor MECOMED member information only. This presentation does not constitute legal advice and may not be relied upon as such. Independent legal advice should be sought by members.

UAEMARKET

KEY ORGANIZATION- HEALTHCARE PROVISION

➢ Abu Dhabi and Dubai, have their own health authorities:

➢ Health Authority Abu Dhabi (HAAD) and Dubai Health Authority (DHA). These are counted as the advanced healthcare systems

➢ Remaining five Emirates depend on the UAE's Ministry of Health (MoH), which is based in Abu Dhabi, the capital.

➢ The MoH operates four undersecretariats:

➢ Public Health and Licensing, Support Services, Health Clinics and Centres, and Hospitals.


UAEMARKET

ORGANIZATION OF THE UAE HEALTHCARE SYSTEM


UAEMARKET

HEALTHCARE PROVISION

Public Sector:

➢ MoH's hospitals provide the majority of healthcare services

➢ Abu Dhabi’s Healthcare providers are: Mubadala & SEHA

Mubadala:

Founded in 2002, Mubadala was established by the government of Abu Dhabi and functions as the principal agent in the investment and development of Abu Dhabi's economy

SEHA:

Abu Dhabi Health Services Company (SEHA) is an independent public joint stock company that manages the public hospitals and clinics in the Emirate.

➢ owns and operates 12 hospitals with 2,644 beds total


UAEMARKET

HEALTHCARE PROVISION

Private Sector:

➢ The market share held by the private healthcare sector has risen significantly in recent years.

➢ The growth of private healthcare insurance, patient fees and co-payments has substantially boosted overall health spending.

➢ Public-private partnerships (PPPs) play the main role in UAE’s Healthcare growth (e.g. Medical Tourism)

➢ Biggest Private Healthcare Providers/Operators in UAE are:

➢ Dubai Healthcare City (DHCC)

➢ Emaar Healthcare Group

➢ Global Hawk Imaging and Diagnostic (GHID)


UAEMARKET

HEALTHCARE PROVISION- PUBLIC/PRIVATE SECTOR EXPENDITURE


UAEMARKET

HEALTHCARE DEMAND DRIVER

Healthcare Demand

Driver

LifeExpectancy

Increased the Public

Health Awareness

Population Growth

Life Style Diseases

Health Insurance


UAEMARKET

HEALTHCARE DEMAND DRIVER

UAE rank No.# 2 on diabetes prevalence globally

Prevalence of Obesity in the UAE is almost triple the global averages


UAEMARKET

HEALTHCARE SECTOR DEMANDS AND INVESTMENTS

➢ UAE is building multiple healthcare facilities, expecting demand for healthcare to more than double by 2025.

➢ Growing population in terms of size, wealth and life expectancy has fuelled a rapid rise in demand for healthcare in recent years.

➢ Increased public Healthcare awareness (Medical Tourism)

➢ Estimates suggest there is now a shortage of almost 2,000 hospital beds across the country, despite an increase of around 30% in the number of beds in recent years.

➢ The Dubai Health Authority (DHA) is planning to construct 18 private and four public hospitals over the next few years in order to support the large volume of medical tourists, with an expected 500,000 medical tourists per year coming to Dubai by 2020

➢ In April 2016, the DHA announced that Dubai's mandatory health insurance scheme (ISHAD) would be fully implemented by the end of June, with over 75% of expatriates already covered by it.


UAEMARKET

HEALTH INSURANCE

➢ Since 2009, the FNC has demanded a comprehensive health insurance scheme for the UAE, but a legislation to regulate it has not been approved yet

➢ Health insurance has been compulsory in Abu Dhabi since 2005, and in Dubai since January 2014 (Remaining Emirates are expected to introduce health insurance plans in future)

➢ As of 2015, approximately 2.7mn UAE citizens and expatriate residents have been enrolled in the mandatory health insurance cover.

➢ The growth of mandatory health insurance results in a rapid growth in private healthcare facilities throughout the GCC.

➢ Insurance Market opportunities - only 44% of the Emirate's residents are currently covered


UAEMARKET

HEALTH INSURANCE

• 47% of the Emirate's population has just a basic insurance plan.

• Workers in low paid sectors are underpaid

• laws for mandatory health insurance have been introduced in Abu Dhabi for expatriates (representing 89% of the UAE population

Abu Dhabi Health

Insurance

• Health insurance has been made mandatory since January 2014 - should be fully implemented by June 2016.

• Insurance System for Advancing Healthcare in Dubai (ISAHD)

• Essential health benefits (EHB) package to residents whose salaries are below AED4,000

Dubai Health insurance


UAEMARKET

MEDICAL DEVICE MARKET SALES FORECAST

➢ The market will register a 2015-2020 CAGR of 8.2%, which will take the value to AED5.3bn (USD1.4bn) in 2020.

➢ The UAE will record slower but sustainable economic growth over the next five to ten years, due to lower oil prices, which will slow down medical device consumption.


UAEMARKET

MEDICAL DEVICE MARKET


UAEMARKET

MEDICAL DEVICE MARKET FORCAST 2015-2020


UAEMARKET

MEDICAL DEVICE MARKET SWOT


UAEMARKET

HEALTH SECTOR OPPORTUNITIES

➢ Expansion of the private healthcare system

➢ Increasing medical tourism, with Dubai as a medical tourism hub

➢ Compulsory health insurance in Dubai, fully implemented by 2016

➢ Increasing health expenditure

➢ Expensive healthcare costs within the region

➢ Increasing healthcare expectation by patients

➢ Increasing demand for premium hospital facilities

➢ Development of mall-based medical centers

➢ Medical device market growth higher than GDP growth

➢ Heavy medical device import reliance


Mecomed Medical Technology Association Middle East& North Africa

Executive Office No. 01 | Floor 2Block C | Building No. 27 | Dubai Healthcare City | United Arab Emirates

+971 50 70 80 [email protected]

www.mecomed.com

UAE HEALTHCARE INDICATORS - Mecomed...Dubai Health Authority (DHA) Regulator • Most developed...

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