Strategies for Entering & Expanding Healthcare Market in the UAE

Strategies for Entering & Expanding Healthcare Market

in the UAE

Tariq Hijjawi – Roche Diagnostics Middle

East

Agenda

• Market Overview

• Distribution Channel

• Procurements procedures ( Public sector )

• Registration & contracts ( Agents/ Distributors)

• Area of Focus

Market Overview

UAE Population/ Demography (2016):

-

Market Overview

UAE Market Size:

• The total UAE healthcare market is projected to reach

$19.5 billion (Dh71.56 billion) by 2020

• Government is extensively expanding and upgrading its healthcare systems to

match international standards

UAE Healthcare market Overview

UAE Market Size:

• The outpatient and inpatient markets are projected to reach

$12.1 billion (Dh44.4 billion) and

$7.5 billion (Dh27.5 billion), respectively, in 2020

• Increase in demand for the

number of hospital beds at nearly 3% per year to more than 13,800 beds by 2020!

• UAE government spending on healthcare was $1,569 per capita in 2013.

Insurance providers in UAE

• Daman

• Oman Insurance

• AXA

• ADNIC

• Alico, etc..

Introduction of a mandatory health insurance policy in Dubai will increase the utilization at public and private facilities which will attract investments accordingly.

Seeking Insurance coverage

Market access to expand insurance coverage

Main Player:

Main Healthcare Customers:

Public :

• SEHA (SKMC, Mafraq, Tawam, etc..)

• DHA

• MOH/HAAD

• General Headquarter (military Hospitals)

• MOI

Private

• Mubadala (Semi-Gov.)

• Cleveland Clinic – Abu Dhabi

• VPS group ( Burjeel, LLH,

• NMC Group (Royal Hospital

• Mediclinic Group

• Sulaiman Habib group

• Aster Group

• Medcare Group

• Life Pharmacy Group

• Saudi German Hospital

Distribution Channel

• Main Distributors :

 Modern Pharmacy Company (MPC)

 Gulf Drug

 Gulf & World

 Pharmatrade

 Alphamed ( Al Khayat Group)

 AMICO

 NMC

 Global Medical Supply Chain

Procurement procedures ( Public sector )

• Source of tender Information

 Online Portals (www.tejari.com) (www.seha.ae) (www.moh.gov.ae)

• Tender rules & regulation

 Purchase of Tender by vendors

 Meeting technical and financial requirements - Scoring system and strict criteria

- Meeting the minimum mandatory requirements

 Submitting a competitive offer

• Agents / Distributors

 Yearly renewal of distributor

agreement with Principal company

• Products and registration

 All products require registration with MOH

 Compliance with UAE customs

(http://www.dubaicustoms.gov.ae)

 CE or FDA certification mandatory

Registration & contracts ( Agents/

Distributors)

Area of Focus

•Where & what to focus on?

- Tap into UAE healthcare priorities (Cardiovascular diseases, Diabetes, Obesity and Cancer) - Meeting healthcare needs

- Capturing niche markets (Nuclear medicine, Medical tourism) - Emerging opportunities (Telemedicine)

•Competitors?

- Price erosion (Shift to price oriented; no compromise on quality)

•UAE has a market- friendly business environment as well as a regulatory stability and transparency

Any Questions?