Building a Healthy Future
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BUSINESS SWEDEN THE UAE & SAUDI ARABIA BUILDING A HEALTHY FUTURE OPPORTUNITIES AND CHALLENGES FOR TACKLING THE GROWING BURDEN OF NCDs THROUGH SYSTEMATIC TRANSFORMATION OF HEALTHCARE PROVISION BUILDING A HEALTHY FUTURE OPPORTUNITIES AND CHALLENGES FOR TACKLING THE GROWING BURDEN OF NCDs THROUGH SYSTEMATIC TRANSFORMATION OF HEALTHCARE PROVISION Layout/grafik:Layout/Graphics Business Sweden Communications Foto:Business Sid Sweden 1, www.istockphoto.com. Marcom & Digitalisation Sid 3, Anders Thessing, www.thessing.se Tryck:Photos Åtta45, 2017 iStock by Getty Images ADD IMAGE INTRODUCTION HEALTHCARE BURDEN A CATALYST FOR CHANGE Global urbanisation and a shift towards in 2018 to encourage a continuous relation- desk- based working are fuelling the prevalence ship between family physician and patient and of a global health epidemic 1 driven by a group the authorities are looking into reducing capac- of “silent killers”, the most prevalent being ity gaps. Similarly, Saudi Arabia has vast expan- cardiovascular disease, cancer, respiratory disease, sion plans outlined for primary and patient-cen- and diabetes. These belong to a group collectively tric care. known as non-communicable diseases (NCDs). Opportunities exist to drive systematic Annually, 41 million people die from an NCD, change as well as providing solutions for aware- accounting for 71% of all deaths globally 2. ness initiatives, primary healthcare develop- Estimates suggest that the economic burden of ments, new forms of care and expansion of spe- these diseases will exceed USD 30 trillion over ciality care. Swedish actors who commit to the next 20 years 3. establishing a presence in the market will have The Middle East holds the unenviable position the scope to influence the restructuring process of expecting the highest NCDs growth globally; if they can swiftly identify opportunities and predicted at 100–150% over the next ten years 4. connect with the right stakeholders. The increased healthcare burden will put unprec- A local presence which enables collabora- edented strain on existing healthcare structures tive partnerships with local authorities and pri- and systems. Reforms must be implemented to vate operators will be a necessity to win tenders create an agile and cost-efficient system which and stay competitive. Private Public Partner- can meet the long-term healthcare demands and ships (PPPs) are becoming increasingly common minimise the cost burden. and present vast opportunities in the B2G sector. While the prevalence of NCDs is increas- While challenges exist, a strategic, insight driven ing across the entire Middle East, this report will approach to market entry can help mitigate risk. focus on the region’s two biggest economies, the Geopolitical tensions create an unstable envi- Kingdom of Saudi Arabia (KSA, to be referred to ronment while a lack of transparency makes it as ‘Saudi Arabia’) and the United Arab Emirates hard to identify decision makers and getting (UAE) who have started restructuring and trans- access to the right stakeholders takes time. The formation programmes to shift their healthcare countries have developed fast, resulting in lag- systems towards a value-based and patient-cen- ging or sometimes, lacking legislation, especially tric approach. The importance of the healthcare related to regulations on e-health and evolving reforms and transformation are reflected in their healthcare in general. respective long-term strategies: Vision 2030 and Having a presence across the Middle East, National Transformation Program 2020 in Saudi and specifically in the UAE and Saudi Ara- Arabia, and Vision 2021 in the UAE. To support bia has given Business Sweden a realistic and the long-term strategic goals, they are actively in-depth understanding of regional and coun- seeking innovative solutions and best practice try-specific opportunities and challenges. This from other countries. local knowledge is helping Swedish healthcare Both countries are actively working to companies, with the right expertise and solu- improve quality and efficiency. Abu Dhabi has tions, to connect with public and private pro- initiated work towards raising the quality, specif- viders to meet the region’s complex and evolving ically within primary care and polyclinics, while healthcare needs. a new patient-centric standard implemented A significant change to the Saudi Arabia 4 | BUSINESS SWEDEN | BUILDING A HEALTHY FUTURE structure will see the Ministry of Health shift The WHO has identified and attributed eight power from central ownership to 20 geographi- measurable ‘lifestyle’ factors to the rise in NCDs: cal clusters. Stakeholder engagement will be even more critical as Swedish companies will need to Alcohol consumption identify and build relationship on a cluster by cluster basis. Physical inactivity This report aims to examine the current and future healthcare landscape in the UAE and Saudi Arabia and present a roadmap for how Raised blood glucose Swedish actors can strategically position them- selves, enter the market, grow market share and Tobacco use create a sustainable long-term presence in a com- plex and transformational region. High blood pressure MODERN LIFESTYLES FUELLING THE GROWTH OF NCDs, THE SILENT HEALTH KILLERS Obesity The modern, urban world is fast paced and efficiency seeking. Industrial advances and High cholesterol, and digitalisation have driven unprecedented social change. Individuals have the luxury of driving High or low energy supply adequacy to work, ordering food and entertainment on demand and working digitally, often not having to leave the house. Whilst the economic benefits Prevention is the strongest weapon available to of these changes are plentiful, the health reper- tackle the worrying upward trend of NCDs. But cussions are reverberating across the globe. prevention will not eliminate NCDs as urbani- Poor management of cardiovascular dis- sation and longer-life expectancy will inevitably ease, cancer, respiratory disease and diabetes continue to fuel their prevalence. poses a substantial risk to the health and wel- The cost burden of NCDs is often com- fare of citizens across the world. This is applica- pounded as patients frequently suffer from ble both at the individual and the healthcare pro- co-morbidities that require long-term treatment. vision level. Policymakers are shifting their focus Indirect costs related to loss of labour market to NCD prevention and management with the resources and productivity contribute to a wider aim of delivering improved patient outcomes and social and economic burden. cost efficiencies for healthcare systems. While The global challenge posed by NCDs has not this shift presents short-term structural and eco- gone unnoticed. The UN Global Targets and the nomic challenges, it is crucial for long-term sus- UN Sustainable Development Goals aim to sup- tainability. The entire healthcare business ecosys- port policy to decrease the occurrence of NCDs tem, from pharmaceutical to MedTech, can grow by 1/3 by 2030. National and regional lawmakers market share by contributing solutions for pre- across the Gulf, specifically those within the UAE vention and improved patient care pathways and and Saudi Arabia, are taking action and imple- life-expectancy. menting plans to tackle the burden of NCDs. 4 | BUSINESS SWEDEN | BUILDING A HEALTHY FUTURE BUSINESS SWEDEN | BUILDING A HEALTHY FUTURE | 5 GLOBAL MEGATRENDS SHAPING HEALTHCARE Global megatrends are redefining nearly and the UAE have rapidly shifted from rural, every industry and sector: where we live, desert dwelling to modern, city living populations how we live, how we consume and inter within a relatively short period of time. While act and the choices we make are all being development, investment and infrastructure has shaped by three major global mega also been rapid, in some areas it still lags. trends. Digitalisation, urbanisation and Healthcare is a primary example where infra- sustainability are changing the way indus structure is not fit for purpose at scale or able to try and society produces and consumes, meet the changing healthcare needs created by and this is presenting challenges and urbanisation. Urbanised lifestyles are associated opportunities across the globe. And the with access to and consumption of more unhealthy UAE and Saudi Arabia are no exception. food while at the same time people are more seden- tary with desk-bound work. These lifestyle behav- URBANISATION: THE NORMAL, iours are having a direct impact on the increase BUT SUPERSIZED in prevalence of NCDs in the general population Since the mid-1980’s, Saudi Arabia has been in both Saudi Arabia and the UAE. To meet the experiencing rapid urbanisation 9 and the UAE needs of an urbanised population with projected has seen a similar expansion since the mid-1990s 10. demographic changes, both countries are trans- So, while urbanisation is not a ‘new’ megatrend forming their healthcare systems to value-based as it is in other countries in the wider region, healthcare models. the intensity and scale present in both countries However, structural change driven by national is a factor that has put a vast deal of pressure policy initiatives are complex and require long- on infrastructure, particularly healthcare. The term, market proven solutions. A whole ecosys- Middle East in general is considered one of the tem shift requires co-operation between all actors world’s most urbanised and both Saudi Arabia across public and private sectors. POPULATION GROWTH (IN MILLIONS) 40 37 36 35