Strategies for Entering & Expanding Healthcare Market in the UAE Tariq Hijjawi – Roche Diagnostics Middle East 29th.Jan.2017

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 : Private SEHA (SKMC, Mafraq, Tawam, etc..) DHA MOH/HAAD General Headquarter (military Hospitals) MOI 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

Registration & contracts ( 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

Area of Focus Where & what to focus on? Competitors? - 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?