Health Care Sector Saudi Arabia

Opportunity Arabia 11October 2nd 2014

Saudi Arabia – The Market

Largest market for health care services and products in the GCC

Medical, Dental, Veterinary

Healthcare & Diagnostic Market• Epicentre of healthcare and technology in

the GCC – demand for high tech

• Expansion of health care services

Demand Drivers 1

Demographics• High Population Growth - 30 million by 2016• Aging Population (over 60s set to double)• 60% of population under age 25• Lifestyle: Diabetes, Obesity, Cardiovascular & Respiratory

Diseases.

Demand Drivers 2

Government Actions• Increased Government expenditures ($28Billion 2014)• Promotion of privatisation• New medical insurance LawAided by demographics and interest in advanced technology,

products and services

Health Care Sector

National Health Care System

Government provides health care via several Government agencies: MOH, MODA, NGHA,MOI, MOE

(70% of services Primary to Tertiary)

Private Sector – growing role (30% of services Primary and Secondary)

Ministry of Health (MOH)

Regulation

Planning

Finance

Management

Budgetary Allocations % GDP

KSA USA Japan China Germany0

2

4

6

8

10

12

14

16

18

Challenges

Infrastructure, Geography, Quality • Inadequate infrastructure• Staff shortages in all disciplines• Rural versus Urban Disparity in resources• Quality of Services – need for standard regulatory

framework

Policy Aims

10 YEAR STRATEGIC PLAN• Increase capacity• Improve quality

Blue Print for Change

• Level 1: Government Sponsored• Level 2: Emerging Health System – more

private providers• Level 3: Intermediate Health System

(Government provision limited, increased regulation)

• Level 4: Market Driven Health System

Government Plans -1

• MOH: Preventative and Curative Primary Care.

• General Organisation for Hospitals (GOH): Transfer all MOH assets in preparation for public private co-operation

Government Plans -2National Health Fund

• Established under Ministry of Finance to fund directly health care services to patients

• Upgrade IT Systems

• Regulatory Framework

Opportunities 1. Infrastructure: Hospital and Clinic Design2. Medical Technology3. Information Systems4. Medical supplies and consumables5. Education and Training6. Maintenance and after sales services

Investment Opportunities 1

Hospital Construction – over 100 new hospitals

6 new medical cities - Highly specialised centres for cancer, organ transplant surgery,

eye surgery and cardiac diseases.

Investment Opportunities 2

Provision of Health Care

Tertiary: Complex clinical areas – Oncology, Organ Transplant

Investment Opportunities 3

• Secondary Care: centres for treatment of chronic diseases eg Diabetes, hypertension

Investment Opportunities 4

Ambulatory Care and Diagnostic Centres

• Physician practice groups• Disease management clinics

• Diagnostic imaging• Laboratory Services

Investment Opportunities 5

Generic Pharmaceuticals Manufacture

AnalgesicsVitaminsAntibioticsBeta Blockers

Investment Opportunities 6

Medical Device Manufacturing

Rapidly growing market and effective regulation

• Bandages, catheters, dentures, ECG Machines• X Ray Films

Investment Opportunities 7

• Insurance: cover a higher percentage of population

• Education: medical and nursing schools

Investment Opportunities 8

E Health Services

Electronic Health RecordsTelemedicine

Companies: Orange

• Digital transformation of the healthcare sector with smart solutions – E Health and Mobile Health

Companies: GE Healthcare

Set up Radiological Departments – CT, MRI,Ultrasound, Nuclear Medicine

Companies: Siemens

• Sponsoring education and training in Saudi Arabia• New Technology: CT- The Somatom Force. 4D imaging• Biograph mCT Flow: PET /CT scanner

Companies: Olympus

High End Microscopy Conventions

• 3 cities in Saudi Arabia• Demonstration and Training

New York Presbyterian Hospital

Co-Operation – Knowledge Sharing

November 2013: New York-Presbyterian Global Services and Al Murjan Medical Company Limited signed agreement

Companies: Novum Pharmaceuticals

Clinical Trials

• Dutch Company• Pharma Research and Clinical Trials

Companies: Al Faisaliah Group

Al Faisaliah Medical Systems ("FMS") leading provider of medical equipment, solutions, and supplies .

Exhibition

Saudi Health Exhibition

Riyadh May 18-20, 2015www.saudihealthexhibition.com