EMBASSY OF THE UAE BERLIN ECONOMIC BULLETIN

Nr. 14 | February 2019 Content

P. 3 ADNOC awards 5 bn contract

P. 4 bank merger

P. 5 News

Interview

Dr. Amin Al Amiri, Assistant World Government Summit 2019 in Dubai: Undersecretary for Health Policy and License at the Ministry Shaping the future of the world of Health is speaking about UAEs achievments in building a 4,000 high-profile officials from 140 countries, heads of state, global “World Class Healthcare”. figures attending Page 7

The seventh edition of the World Gov- 2019 is to present a formula for success- ernment Summit, which started on Sun- ful nations to all world governments. day February 11th, brought together the largest gathering of leaders and heads Main theme: Development of hu- of state, top government officials and man life leaders of international governments to discuss how to shape the future of the The main theme of the event focused on world. the development of human life, in line with the summit’s approach aiming at 4,000 high-profile officials from 140 coun- boosting governments’ efforts to shape tries, heads of state, global figures and 30 a better future for the planet’s 7 billion leaders of 30 international organisations, inhabitants. Embassies Activities as well as more than 120 heads of leading international companies discussed ways to It featured 200 key interactive sessions Khalfan Al Matrooshi, the UAE shape the future of governments. involving 600 speakers, including ex- Embassy Economic Attaché, perts and future forecasters, who have took part at a meeting between Mohammad Abdullah Al Gargawi, Min- addressed vital future sectors. counselors and economic ister of the Cabinet Affairs and the Fu- attaches of the Arab Embassies ture and Chairman of the summit, said Pope Francis, Head of the Catholic in Berlin and representatives of the vision of His Highness Shaikh Mo- Church, addressed participants at the the German Federal Ministry of hammad Bin Rashid Al Maktoum, Vice summit through a video conference — Economic Affairs and Energy. President and Prime Minister of the a major event that highlights the glob- Page 5 UAE and Ruler of Dubai, for the Summit ally recognised reputation the summit World Government Summit

(Davos), gave a speech about the “Fourth Generation of Globalisation”. Christine Lagarde, Managing Director of the In- ternational Monetary Fund (IMF) was also present.

Lebanese Prime Minister Saad Hariri spoke about the Lebanese, Arab and in- ternational affairs and his vision for the Summit Facts future of governments.

1. 4000 participants, including leaders and heads of states Nobel Laureates in attendance

2. over 5 days (February 8 to 12; main sessions starting on Four Nobel Prize winners talked about February 10) economy, peace and the future of devel- opment. They include Juan Manuel San- 3. 200 sessions tos, the 32nd President of Colombia. He talked about how to drive nations from 4. 600 speakers from 140 governments conflict to reconciliation. The Nobel Economic Prize Laureate Daniel Kah- 5. 30 representatives from international organisations neman, who spoke about the art and science of decision making, and Nobel 6. 120 heads of leading international companies Peace Prize Laureate Leymah Gbowee, who addressed the topic “Role of Wom- 7. 4 Noble Prize winners en in Rebuilding Nations”, also held a session. has attained on the global scale, and its at a session titled “A New Era of Human Paul Krugman, Professor of Economics position as a platform for all concerned Fraternity”. and International Affairs who won the about the future of governments. Nobel Prize for Economics, was the key Guest countries at the summit speaker at the session titled “The Future Among key speakers was Shaikh Ham- Prospects for Free Trade”. dan Bin Mohammad Bin Rashid Al Mak- Rwandan President , Epsy toum, Deputy Ruler of Dubai, who high- Campbell Barr, Vice-President of Costa The summit addressed the future of lighted the seven main changes that will Rica, Estonian Prime Minister Jüri Ra- global economy, and ways to harness shape future cities. tas, who represent the three countries, artificial intelligence to improve human visited the summit as guests of honour health, as well as data revolution and the Lieutenant General Shaikh Saif Bin Zayed and gave key speeches. They highlighted future of media. It also focused on the Al Nahyan, Deputy Prime Minister and success stories of their governments. future of international trade and how Minister of Interior, spoke at the ses- quantum computing will change the fu- sion titled ‘a Wise Drive”, while Shaikh Fourth-Generation Globalisation ture of the world. Abdullah Bin Zayed Al Nahyan, Minis- ter of Foreign Affairs and International Klaus Schwab, the founder and executive Cooperation addressed the participants chairman of the

2 World Government Summit Upstream Gas Industry

Al Rumaithi said, “We are proud of our ADNOC awards AED5 billion contract for construction partnership with ADNOC and to be awarded this exciting new mega-pro- of Ghasha Concession artificial islands ject. We are also very pleased at the contribution this project will make to The Abu Dhabi National Oil Company sha and Dalma sour gas offshore me- the local UAE economy, to supporting (ADNOC) today announced the award of ga-project, which is an integral part of ADNOC’s gas developments, and to a dredging, land reclamation and marine ADNOC’s 2030 smart growth strategy. progressing the UAE’s strategy to de- construction contract to build multiple As one of the world’s largest sour gas velop the maritime sector, in order to artificial islands in the first phase of de- projects it will make a significant contri- compete globally. velopment of the Ghasha Concession. bution to the UAE’s objective to become gas self-sufficient and transition to a po- “Enhancing In-Country Value is an im- The contract awarded to the UAE’s tential net gas exporter. portant part of our work plan in the Na- National Marine Dredging Compa- tional Marine Dredging Company, as it ny (NMDC) is valued at AED5 billion “NMDC was selected after a rigorous and is for ADNOC. We will achieve this by (US$1.36 billion) and will achieve sub- competitive tender process. The award spending almost one billion dollars of stantial In-Country Value of over 70 per- of this project to a UAE company will the contract award in the UAE and cre- cent. The Ghasha Concession consists generate substantial In-Country Value, ating additional employment opportuni- of the Hail, Ghasha, Dalma, Nasr and supporting local economic growth. In ad- ties for citizens in the maritime sector. Mubarraz offshore sour gas fields. dition, it demonstrates the rapid progress We aim to increase the use of local re- ADNOC is making to leverage and create sources, such as products, facilities and Under the terms of the contract, NMDC value from Abu Dhabi’s substantial, un- infrastructure in this sector of dredging will construct 10 new artificial islands tapped, hydrocarbon resources.” equipment and services. NDMC will and two causeways, as well as expand an contribute to supporting the develop- existing island, Al Ghaf. The project is As part of the selection criteria for the ment and prosperity of the UAE.” expected to take 38 months to complete contract, ADNOC carefully considered and will provide the infrastructure re- the extent to which bidders would max- Artificial islands provide significant cost quired to further develop, drill and pro- imise In-Country Value in the delivery and environmental benefits, particularly duce gas from the sour gas fields in the of the project. This is a mechanism in- in shallow water, by enabling the use of Ghasha Concession. At peak construc- tegrated with ADNOC’s tender evalu- lower-cost land-drilling rigs instead of tion, the project is expected to employ ation process, aimed at nurturing new high-cost offshore jack-up drilling rigs. over 3,500 people. local and international partnerships and They also provide greater flexibility for business opportunities, catalyzing so- extended reach drilling when compared The award was signed by Abdulmunim cio-economic growth and creating job to offshore rigs. The use of artificial is- Al Kindy, ADNOC Upstream Executive opportunities for UAE nationals. lands will eliminate the need to dredge Director, and Yasser Zaghloul, NMDC over 100 locations for wells and provide CEO, and was witnessed by Dr. Sultan The successful bid by NMDC prioritised additional habitats for marine life. AD- Ahmad Al Jaber, Minister of State and UAE sources for materials, as well as the NOC has a proven record of developing ADNOC Group CEO, and Mohammed use of mostly local suppliers, manufac- artificial islands, including the construc- Thani Murshed Al Rumaithi, Chairman turers and workforce, resulting in a to- tion of four artificial islands for the Up- of NMDC. tal local spend of over AED 3.62 billion per Zakum expansion project. ADNOC’s (almost US$1 billion). NMDC will also Upper Zakum field is the second-largest Dr. Al Jaber said, “This award acceler- work with international partners to de- offshore oil field and the fourth-largest ates the development of the Hail, Gha- liver the project. oilfield in the world.

3 Finance

Abu Dhabi bank merger to boost profitability and asset quality

The three-way merger of Abu Dhabi network of UNB and Al Hilal’s high cost tal funding, including a strong low-cost Commercial Bank (ADCB), Union Na- to income ratio (57 per cent, 2 times as CASA (current account savings account) tional Bank (UNB) and Al Hilal Bank high as the group average) despite re- base of Dh96 billion, and wholesale fund- will have positive impact on the medi- maining a separate Islamic arm, especial- ing making up 18 per cent of total fund- um-term profitability of the new entity, ly with the combination under the helm ing as of 30 September 2018. The bank according to banking sector analysts and of ADCB management, widely recog- will also have a healthy net loan-to-de- rating agencies. The merger will make nised as strong,” said Jaap Meijer, director posit ratio of 96.5 per cent as of 30 Sep- ADCB, the merged entity, the third-larg- of research at Arqaam Capital. tember 2018. est UAE bank with a total asset size of Dh420 billion ($114 billion) followed by While the projected cost savings from the “We expect revenue synergies on the First Abu Dhabi Bank (FAB) and Emir- merger may not be visible during the first funding side of Dh300 — 400 million. ates NBD with asset sizes of Dh744 bil- two years because of some of it is expect- We expect the combined entity to bene- lion and Dh500 billion, respectively. ed to get offset by the costs relating to in- fit from ADCB’s stronger treasury team, tegration analysts said over the medium which should result in lower cost of Many analysts expect the estimated cost term, the combined entity will benefit funds, by optimising the funding mix of synergies from the merger has strong earnings boost. UNB (more wholesale debt, less time de- upward potential. “The key source of posits),” said Meijer. synergies will be costs, by reducing head- “Front-loaded integration costs of Dh800 count and closing overlapping branches. million are likely to offset this [cost sav- Analysts said the merged entity will seek Management is targeting cost synergies of ings] in the first two years. So, synergies scale and sophistication as the bank is Dh615 million annual and one time in- should start to support earnings as of set to gain market power and improved tegration cost of Dh800 million. We note year three, unless the integration process pricing and cost of funding. “Added to that cost synergies of this merger appears proves more complex and restructuring this are its strong digital and cross-selling lower compared to NBAD/FGB merger,” costs or digital investment increase,” said capabilities that should drive midterm said Aarthi Chandrasekaran is Vice-Pres- Edmond Christou, Bloomberg Intelli- revenue synergies. The bolstered lender’s ident of Shuaa Capital. gence’s GCC Financials Analyst. greater exposure to the corporate sector and government entities is supported by Total estimated cost synergies amount to Strong balance sheet UNB’s strong track record. The increased 13 per cent of combined cost base. This share of Islamic lending, driven by Al-Hi- compares to the original 8 per cent cost The combined bank will benefit from a lal Bank, will boost the company’s com- savings from combined base announced strong balance sheet, solid financial met- petitiveness and product offerings,” said originally announced by NBAD-FGB, but rics, and favourable access to capital mar- Christou. this has subsequently been revised to 25 kets. Its capital position will comfortably per cent. exceed Basel III regulatory requirements. Post-merger, ADCB is supported by the The combined bank’s funding profile will significantly enhanced capital base with “We see strong upside [to cost synergies be diverse, with pro forma customer de- common equity capital of 14.1 per cent, for the latest merger], given the extensive posits accounting for 75 per cent of to- and capital adequacy ratio of 17.9 per

4 Embassies Activities

cent. “Merger demonstrate that capital P-1, UNB at A1/P-1 and Al Hilal Bank Fitch Ratings has affirmed UAE-based ratio will be strengthened, lending capac- PJSC (AHB) long-term and short-term Abu Dhabi Commercial Bank’s (ADCB) ity improved and risk concentration to issuer ratings at A2/P-1. Despite the in- Long-Term Issuer Default Rating at the real estate sector lowered to about 32- tegration challenges that Moody’s expects ‘A+’ with a Stable Outlook and Viability 33 per cent versus 2018’s 39 per cent level. ADCB, the surviving entity from the Rating at ‘bb+’ following the recent an- A larger network and digital capabilities merger of ADCB and UNB to face, the nouncement the merger. in the retail and Islamic bank could sup- rating agency considers that the merger port the acquisition of less costly deposits is credit neutral given the similar and Fitch’s view of support factors in the sov- (CASA), aiding net margin,” said Chris- complementary credit profiles of ADCB ereign’s strong capacity to support the tou. and UNB. The outlook on all banks’ long- banking system, sustained by sovereign term ratings is maintained at stable. wealth funds and ongoing revenue most- Leading credit rating agencies have con- ly from hydrocarbon production, despite firmed that the three-way merger of three Likewise, Moody’s expects the acquisi- lower oil prices. Fitch also expects high Abu Dhabi banks, Abu Dhabi Commer- tion of AHB by the merged entity to be willingness from the authorities to sup- cial Bank (ADCB), Union National Bank broadly credit neutral for AHB as the ex- port the banking sector. This has been (UNB) and Al Hilal Bank will be neutral pected, improvement in its credit profile, demonstrated by the UAE authorities’ on the merged entity. very high parental support and very high long track record of supporting domestic government support all balance the loss banks, as well as by the authorities’ close Moody’s has affirmed the local and for- of direct shareholding from the Abu Dha- ties with and part-government ownership eign currency long-term and short-term bi government through the Abu Dhabi links to a number of banks. deposit ratings of ADCB (ADCB) at A1/ Investment Council (ADIC).

Economic Attachés meeting with Ministry of Economic Affairs

On February 11th 2019, the UAE Em- After the welcome notes and introduc- the high number of small and medium bassy Economic Attaché Mr. Khalfan Al tions, Dr. Heußner, Head of Division sized companies she said pointing out Matrooshi attended a meeting of Eco- North Africa, Near and at that these SMEs are of such importance nomic Counselors and Commercial At- the Federal Ministry of Economic Af- to the German Federal Ministry of Eco- taches from the Arab Embassies with the fairs and Energy introduced Germany’s nomic Affairs and Energy that “without Federal Ministry of Economic Affairs vision in relation to the Arab World and these companies we couldn’t do our job”. and Energy, league of Arab States Mis- Africa. She reiterated Germany’s serious sion and the Arab German Chamber of intention to invest more in Africa and There were several questions from the Commerce in Berlin. the Arab countries saying that of course counselors of the Arab Embassies to the their focus is on German companies al- representatives of the Federal Ministry. Following the invitation of Ghorfa Ar- ready in the region and those who are Dr. Schneider, which is in charge of the ab-German Chamber of Commerce and willing to invest there. She highlighted strategic affairs at the Federal Minis- Industry, the main aim of the meeting German companies’ worldwide repu- try, said that there are 10 large projects was to discuss Arab German Economic tation of being reliable and resilient, that they are following, but there are relationship as well as the vision of the saying, that history has shown that Ger- two main challenges that need to be ad- German Federal Ministry of Economic man companies, regardless of their size, dressed. The first one is how Germany Affairs and Energy in regards to its for- always ‘stick to their partners’ in good can provide better political support and eign direct investment in the Arab re- times as well as bad times. This holds the second one is how Germany can gion and Africa. true not only for the big, but also for make a profound impact on countries where they are engaged.

Mr. Khalfan Al Martooshi, the UAE Eco- nomic Attaché said that there is a strong German presence in the UAE, but asked how the UAE Embassy could support Germany in ‘’being more active in the re- gion’’. He also asked about which sectors Germany is more interested to invest in. In reply, Dr. Schneider said that there are several projects Germany needs to sup- port but there are also strategic projects set forth by the Germany government.

At the end of the meeting, participants agreed to have this meeting every six months where sector experts could be invited to provide more details.

5 News

INFRASTRUCTURE markets, which gives it an added value for on the development of SMEs and Block- its economic and environmental benefits chain and digital assets as well as on to the United Arab Emirates. good governance. On the second day, Brand identity is part of Etihad MoF held an open session with the IMF Rails new strategy has made significant strides on the role development funds can play with regards to the agreement between by investing in the digital economy and Etihad Rail has revealed details of their the UAE Ministry of Finance and the Abu an open session on the coordination of new strategy and brand identity, follow- Dhabi Department of Finance for sup- fiscal policies with the World Bank. ing the recent financing approval for porting economically the 605 kilometres Stage Two of the UAE’s national rail net- of Stage Two of the UAE’s national rail- Younis Haji Al-Khoori, Undersecre- work. Operating under the directions of way network. PMC & Engineering Con- tary of MoF, stressed the importance Sheikh Theyab bin Mohamed bin Zayed tracts have been awarded for a five-year of participating in the World Govern- Al Nahyan, chairman of Etihad Rail, the contract covering the development and ment Summit, which brought together new strategy and logo reflect the com- the supervision of this next phase from more than 4,000 participants, includ- pany’s future vision to contribute to Ghuweifat on the Saudi border in the ing world leaders, policy makers and achieving the objectives of the UAE’s wise west to the UAE’s Port of on the experts from more than 150 countries, leadership and 2021 Vision; and the Abu east coast. to identify future trends and showcase Dhabi Economic Vision 2030. best practices and technologies that en- FINANCE courage creativity and . The announcement was made right af- ter the completion of the network design Al-Khoori added that MoF was keen to from Ghuweifat to Fujairah. Major inter- MoF to discuss development of organize a series of events associated national companies have been pre-quali- SMEs with IMF’s Lagarde at Dubai with the World Government Summit to fied and construction tenders have been World Government Summit help it become the most important in- released within schedule. The new strat- ternational forum discussing the pros- egy reflects the company’s future aspi- The Ministry of Finance, MoF, has par- pects and challenges of governments rations to act as a catalyst for economic ticipated in the 7th World Government worldwide. growth and to provide a safe and reliable Summit, an event that included round means of transportation for future gener- table discussions with the Interna- The 2018 World Government Summit ations. tional Monetary Fund Director Chris- gathered more than 4,000 people from tine Lagarde about the development 140 countries and organised more than Etihad Rail has recently signed a series of SMEs in the UAE and the future of 120 key and interactive sessions with of land lease agreements throughout the Blockchain and digital assets. 130 speakers ranging from politicians, UAE to secure the rail network’s trans- decision-makers and representatives of port corridors in all the emirates. The To benefit from the expertise of other 16 international organisations, entre- UAE’s national railway developer has governments around the world in its ef- preneurs, experts, specialists, research- announced a set of short and long-term forts to meet the aspirations of the UAE ers and academics. strategic objectives in order to achieve government and to build a sustaina- sustainable development and economic ble knowledge-based economy, MoF PHARMACEUTICALS growth; help to enrich both knowledge held two closed sessions and a number career development; and excel with sta- of open meetings on global financial bility and empowerment. trends at the summit from 10th to 12th Dubai Investments acquires stake February. in Globalpharma for 100% own- These objectives will be implemented ership through a series of expansion programs Younis Haji Al-Khoori, MoF Under- formulated to maximise and diversify the secretary, said, “The Summit was the Dubai Investments today announced benefits generated by the industry and starting point for the development of the acquisition of an additional 66 per the community, in addition to promoting ideas, visions and initiatives that en- cent stake in Globalpharma. Following innovation, digital transformation, and hance human life and enhance the role the acquisition, made through Dubai operational excellence. and work of governments in promoting Investments Industries, the pharma- the quality of their societies. The UAE ceuticals company will now be a whol- The new strategy includes a set of key pil- has made a quantum leap in embracing ly owned subsidiary of Dubai Invest- lars that focus on benefiting from a fully this important event by analyzing and ments. In 2014, Dubai Investments developed railway network, providing in- anticipating the future and building for divested a 66 per cent stake and had novative solutions to support the nation- it, not only for today and tomorrow’s continued to hold a minority 34 per al wealth and economic diversification in generations but also for future gen- cent equity in the subsidiary. the long term, by linking all major UAE erations. We seek to ensure the future ports. The railway network is an impor- sustainability of financial and economic Commenting on the acquisition, tant part of the future transport strategy resources and meet the aspirations and Khalid bin Kalban, Managing Direc- of the UAE, as it provides efficient logis- needs of future generations by identify- tor and CEO of Dubai Investments, tics solutions and serves urban and sub- ing and taking on challenges.” said, “Our original investment in urban areas. It also enables efficiency in Globalpharma was well timed and transferring large amounts of construc- During the first day of the event, MoF good for the growth of the healthcare tion materials from quarries for the local held high-level closed-door discussions sector in the UAE and region. We see

6 News Interview

the strategic benefit for making this INVESTMENT $11.59 billion, due to macro-economic acquisition. It forms part of the Dubai and geopolitical headwinds. Investments growth strategy, and un- derscores our commitment to creating Mena Mergers & Acquisitions deals However, according to Thomson Reu- more value for our shareholders. value jump 69% to $26.7 billion in ters, the value of announced M&A 2018 transactions with any Middle East- “Our healthcare portfolio includes ern and North African involvement different stakes in KCH Healthcare, Merger and acquisition deal value in reached $54.9 billion during 2018, 50 Clemenceau Medical Centre, tie ups Mena jumped 68.7 per cent to $26.76 per cent more than the value record- with hospital operators such as NMC billion in 2018, compared with $15.86 ed during 2017 and a three-year high. in Dubai Investments Park and Mir- billion in 2017, driven by increased Deals with a Middle Eastern and North dif Hills. These investments not only deal-making in the UAE, which more African target reached an 11-year high, achieve key business objectives for Du- than doubled to $10.4 billion in 2018, rising to $31.4 billion, up 63 per cent bai Investments and support the Dubai as well as blockbuster deals in Saudi from 2017, while inter-Mena or domes- economy, they also contribute to the Arabia and North Africa. tic deals were also up 79 per cent from wellbeing of the UAE, improve the rep- last year. utation of Dubai as a hub for world- According to M&A data and intel- class medical care and align with the ligence provided by Mergermarket, Cross-border Mena deals, which to- long term plans of the UAE govern- Abu Dhabi National Oil Company talled 77 deals worth $14.21 billion, saw ment for sustainability and progress in (Adnoc) played an important role the highest volume of inbound M&A on fields such as health and science.” with a series of seven divestments on record and the highest value since the its energy assets worth $6.2 billion. global financial crisis. Domestic M&A Established in 1998 and headquar- Meanwhile, deal count in the region ($12.54 billion) was considerably higher tered in Dubai Investments Park, jumped by 15 deals to 148, compared than in 2017 ($8.742 billion), although Globalpharma grew to become a mar- to 133 in 2017. deal count was marginally lower. The ket leader in certain generic medi- increase in domestic activity was driven cines with a strong regional footprint. According to a Mergermarket report, by two sizeable deals in Saudi Arabia: Globalpharma manufactures and mar- the first half of 2018 saw a considerable Saudi British Bank and Alawwal Bank’s kets pharmaceutical products in more rise in value to $15.16 billion from $9.13 $4.7 billion tie-up, the second biggest than 14 countries across the GCC, billion in 2017, and a moderate increase deal in the regional financial services Middle East and neighbouring mar- in the number of deals to 87 from 71. By sector since 2001; and Saudi Interna- kets. contrast, the second half of the year was tional Petrochemical’s $2 billion acqui- more subdued with 61 deals totalling sition of Sahara Petrochemical.

Interview with Dr. Amin Al Amiri, Assistant Undersecretary, Health Policy and License

Could you please tell us about the importance of the UAE Health Care market and how much it has developed over the last two decades? How much does the Health Care sector contribute to UAE’s GDP?

The U.A.E. has witnessed a dramatic expansion of its healthcare industry over the past decades. Today, our beloved country has over 110 hospitals and hundreds of primary health centers and clinics. This significant development in a relatively short time was possible thanks to the guidance of our wise leaders who identified healthcare as a main driver of our country’s success, and established the healthcare sector as a main pillar of the National agenda of the country, they stated: “Since success requires an open mind and healthy body, the UAE Vision 2021 National Agenda aims to achieve a world-class healthcare system”.

To achieve this ambition, we adopted a strategy that engages the private sector and enhances its role in the healthcare market. That was possible through the establishment of a flexible and futuristic legislative framework: Our health legislations are being reviewed and updated regularly to keep pace with the global developments and with the modernization in the healthcare field. The ministry of health and prevention has updated at least 19 laws in the past 3 years, including as examples, the “medical liability law” that protects the rights of the healthcare workers, the “telemedicine law” that supports the use of technology in healthcare and the “organ donation and transplantation law” that provided new hopes to patient with end stage organ failure. Such legislations play a crucial role in attracting foreign investments and most importantly in the acquisition and retention of talents in this field, some of the examples include Cleveland Clinic Abu Dhabi, Seoul National University Hospital and Imperial College of Diabetes and many others who have establish a strong presence in our country.

7 Interview

Moreover, the roll out of the mandatory health insurance schemes across different emirates has boosted the healthcare market which reached 15Bn USD in 2018 representing around 4% of the GDP, and is expected to continue to grow to 19Bn USD in 2022. The private sector share in this market will increase from 32% in 2018 to 36% in 2022 as per the forecasts of Fitch Solutions in the first quarter of 2019.

What sets the UAE as a pioneer in the region in regards to the Health Care market and how attractive is it to foreign investments? What are the specific areas within the Health Care sectors does the UAE government want to focus on in terms of FDI?

With our ambition to achieve “World Class Healthcare”, quality was and continues to be our main focus. The Ministry of health and prevention with the local health authorities continuously monitors and regularly inspects the private sector performance, as well as our own performance. Moreover, we required all hospitals in the private and public sector in the country to acquire an international accreditation by 2021. We are proud that 86% of our facilities (governmental and private) were accredited by the end of 2018 and we are confident that we will achieve our target before the stipulated deadline. We also believe in the value of innovation that brings solutions to patients’ medical needs and we strive to attract new products and creative ideas to our country. The pharmaceutical field is one example where the UAE has established a “Fast Track” registration and approval policy and became a pioneer in attracting new products as soon as they are approved by the trusted international drug Approval bodies such as FDA or EMA. Quality coupled with innovation established the UAE as a regional hub for medical tourism and as a reference for countries in our region.

Adding to that, the UAE offers logistic facilities that make it also a manufacturing and distribution hub for pharmaceutical and medical devices companies who expand their reach, from the UAE, to countries in the middle east and Africa.

Regarding areas of focus in terms of FDI, my beautiful country welcomes all sorts of projects and wishes to give opportunities to everyone. We trust that every new comer, in the healthcare field in particular, will bring with him new ideas, new services and new programs and will enhance the quality of care in the country. We would love to see foreign pharmaceutical and medical devices companies establishing their base in the UAE to serve our region, we also encourage them to establish manufacturing and distribution facilities in our country. We would love to see research and development flourishing in the UAE and providing solutions to patients across the world. We also encourage companies active in the field of technology and artificial intelligence to actively engage in research in the UAE to develop innovative solutions to patients. Last but not least, International Healthcare providers are also welcome to establish their presence in my country and offer high quality care to patients from the country and the region.

How would you characterize the UAE – German relationship when it comes to the Health care sector?

The United Arab Emirates and Germany have established a strong strategic partnership since long time and specifically in the field of health. Several German companies that provide medicines and medical devices and consumables are already present in the country and they offer high quality healthcare products to patients in the UAE, and they benefit from the UAE, its location and its facilities to reach the whole Middle East and African region. Healthcare providers in the UAE and the consumers in my country in general are aware of the high quality standards of the German products and they trust the German health products currently available in our market. At the level of the Ministry of Health and Prevention, we support the presence of German companies in our country and we expedite the process of registration of their products, and we look forward to seeing more new German companies establishing a base in the UAE.

Imprint

Publisher Ambassador Editor Embassy of the Ghorfa Arab-German Chamber H.E. Ali Abdullah Al Ahmed Dr. Abdulla Al Mandoos United Arab Emirates of Commerce and Industry e.V. Khalfan Al Matrooshi Hiroshimastr. 18-20 Garnisonkirchplatz 1 Secretary General D-10785 Berlin D-10178 Berlin Abdulaziz Al-Mikhlafi Ahmed Shalaby Marcus Schoft Telefon: + 49 (0)3051651451 Telefon: + 49 (0)30278907-0 www.uae-embassy.ae www.ghorfa.de @uaeembassyger Layout: Fadhl Al-Romaima @uae_berlin @Ghorfa_Germany

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