Dubai: The Medical Sector
Middle East
Association, London, UK
December 6 2012

Dubai: Medical Sector
1. Overview
2. The Challenges
3. The Opportunities

Dubai – A Global City
• Cultural and Business Centre of the Middle East
• Cosmopolitan population
• Major tourist destination (also medical tourists)

Health Care Goals
World Class Medical Care for
Domestic Patients
Centre for Medical Tourism

Government Strategy
Implementation of
Dubai Strategic Plan 2015
DHA and DHCC

DHA: Dubai Health Authority
• Created 2007 replacing DOHMS
• Strategic oversight of health sector in Dubai
• Licenses hospitals and professionals

DHA: Dubai Strategic Plan 2015
• Health Services -
Quality, Access, Integration
• Public Health Promotion
• Private Sector – enhanced engagement

DHA Facilities for Medical Care
4 Hospitals: Rashid Hospital, Dubai Hospital, Latifa
Hospital, Hatta Hospital
10 Specialist Centres: Thalassaemia Centre etc
14 Primary Care Centres: Throughout the city

DHCC: Dubai Health Care City
• Founded in 2002
• 4.1 million square feet in centre of Dubai
• 2 Hospitals, 100+ medical outpatients centres and
laboratories
• Employs 3000 licensed professionals

Dubai: Drivers of Health Care Demand
1. Demographics
2. Economics
3. Medical Tourism

Demographics 1
Overview
• Population recently exceeded 2 million
(Max population growth 1985-2005)
• Population growth and ageing
• Demographically delineated groups

Demographics 2
Population 1968-2012
•

Demographics 3
Segments
• Emiratis: 17%
• Expats: 83% (85% of this group are Asian)
• Median age 27 years
• 77% male (expat workers living without family)

Demographics 4
Groups and Medical Needs
Different Demographic Groups,
Different Medical Needs
Emiratis : Chronic Diseases, Lifestyle Diseases
Blue Collar Expat workers: Work related injuries,
road traffic accidents

Economics 1
• Increased GDP: GDP per capita projected at $58,000 by
2015, 5.5% annual growth
• Increased Government spending on health and social care
(CAGR 5%)
• Increased personal consumption of health care
(part driven by insurance with low premiums)

Economics 2
• Government accounts for 70% of present health care
spending
• Per capita spending on health in world top 20
• UAE 2nd highest spending in the GCC
• Huge potential growth in health care sector
(public and private)

Economics 3
HC Expenditure per Capita $
Qatar
UAE
Kuwait
Bahrain HC Expenditure per Capita $
KSA
Oman
0 500 1000 1500 2000

Economics 4
Health Care Costs Rise 30-40%
• Rising costs of Medical Equipment and New Technology
• Complex and costly Licensing Procedures
• Low cost insurance drives over consumption of health
care

Medical Tourism
Overview
• Worldwide medical tourism industry worth $60 B
• Aims to be major destination for medical tourism
• Low Cost Treatments in Accredited Hospitals

Medical Tourism
Dubai
• 25 JCIA hospitals, clinics and programmes in
Dubai (almost 50% of UAE total)
• Treatments 50% cheaper in Dubai than in the USA
• 7.5 Million Annual Tourists to Dubai

Medical Tourism
DHCC
<<PatientsBeyond Borders Dubai
Healthcare City Edition>>
Book authored by Josef Woodman and launched
at Arabian Travel Market 2012

Medical Tourism
American Hospital Dubai
No. 1 JCIA Hospital in the Gulf
8% of patients non UAE
40% of Joint Replacement Surgery non UAE
Treats patients from more than 20 countries

Dubai: Medical Sector Headlines
Khaleej Times Dec 2, 2012:
Dubai Medical Sector to hit
$10.9 by 2013
Government and International
Investment

Dubai: Medical Sector
The Challenges
Regulatory , Operational

Challenges: Regulatory
Cost and Complexity of Regulation
Professionals and Hospitals
Malpractice complaints dealt with by Criminal Courts and
Police

Challenges: Operational 1
Staff Attraction and Retention
Chronic shortage, high turnover
80% physicians and 90% nurses expatriate
Emiratis not attracted to work in this sector.

Challenges: Operational 2
Quality and Standardisation of Services
Accreditation and Staff
Different accreditation systems
Different Staff Training and Cultures

Challenges: Operational 3
Poor Perceptions, Lack of Confidence
YouGov Survey 2011
70% of residents and 57% of Emiratis would seek overseas
treatment for serious illness
OUTBOUND MEDICAL TOURISM

Challenges: Operational 4
Low Insurance Premiums
Strategy to attract high market share
BUT
Lack of investment in advanced technology and treatments
Over consumption of Out Patient services & Medications

Dubai: Medical Sector
Opportunities

Opportunities 1:
Specialised Centres
Specialist Hospitals and Clinics
CHRONIC DISEASE
LIFESTYLE DISEASES
GENETIC DISORDERS
TRAUMA
ONCOLOGY

Opportunities 2:
In Bound Medical Tourism
Medical Tourist Services
MINOR PLASTIC SURGERY
DENTAL AND ORAL SURGERY
ONCOLOGY
JOINT REPLACEMENT SURGERY

Opportunities 3:
Long Term Care
Long Term Care for Disability
ELDERLY
ALZHEIMER’S DISEASE AND DEMENTIA
REHABILITATION

Opportunities 4:
Home Care
AMBULATORY CARE
FOR ELDERLY AND CHRONIC ILLNESSES
REDUCES COSTS OF HEALTHCARE

Opportunities 5:
PPP
Private Public Partnership
TECHNOLOGY AND KNOWLEDGE TRANSFER
ACCESS TO SPECIALIST TREATMENTS

Opportunities 6:
Insurance
Health Care Insurance
POSSIBLE COMPULSORY INSURANCE?
Increasing Market Size
Demand for Specialist Treatments

Opportunities 7:
Recruitment
Health Care Staff Recruitment
High Staff Turnover and High Demand

Opportunities 8:
Alternative Medicine
Demand for Alternative
Therapies Increasing
60,000 patients in Dubai treated in 2011.
ACUPUNCTURE, HOMEOPATHY, AYURVEDA, CHIN
ESE MEDICINE

Dubai: Business Culture
Good Infrastructure, transport, hotels
Safe
Easiest place to do business in the Gulf

Challenges
Decision Making can be slow
Sudden Changes of Plans
Regulatory Delays
Red Tape

Solutions
Persevere and Visit Often.........