MALAYSIAN RUBBER EXPORT PROMOTION COUNCIL

MARKET BRIEF (Rubber Medical Devices)

UNITED ARAB EMIRATES (UAE)

(January 2020)

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CONTENTS

No Topic Page 1.0 COUNTRY PROFILE 2

2.0 MARKET INFORMATION 3 2.1 Healthcare in and North Africa (MENA) Region 3 2.2 Healthcare in Gulf Cooperation Council (GCC) Countries 8 2.3 Healthcare Market in 10

3.0 TRADE STATISTICS 15 3.1 Multilateral Trade 15 3.2 Bilateral Trade 19

4.0 IMPORTANT CONTACTS 23 5.0 REFERENCES 24

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1.0 COUNTRY PROFILE

UNITED ARAB EMIRATES (UAE)

Capital:

Population: 9,821,778 (Dec 2019 est.)

Area: 83,600 sq km

Official language: Arabic

Major religion: Islam

Currency: UAE Dirham (AED)

Main exports: Mineral fuels including oil: US$92.5 billion (29.2% of total exports) Gems, precious metals: $45.9 billion (14.5%) Electrical machinery, equipment: $27.3 billion (8.6%) Machinery including computers: $17.6 billion (5.6%) Vehicles: $12.9 billion (4.1%)

Main imports: Gems, precious metals: US$54.2 billion (20.7% of total imports) Electronic equipment: $34.2 billion (13.1%) Machinery: $28.6 billion (10.9%) Vehicles: $20.5 billion (7.8%) Mineral fuels including oil: $15.4 billion (5.9%)

GDP per capita: USD 44,516.22 (2018)

GDP growth: 2.4% (2019 est.)

International dialing code: +971

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UNITED ARAB EMIRATES (UAE) 2020

2.0 MARKET INFORMATION

2.1 Healthcare in Middle East and North Africa (MENA) Region

The healthcare sector in the Middle East and North Africa (MENA) region is witnessing a phase of significant growth. A recent report by Fitch Solutions suggests that the MENA region’s healthcare market is projected to grow from US$ 185.5 billion in 2019 to US$ 243.6 billion with an 11.7% compound annual growth rate (CAGR) at constant exchange rates through to 2023.

MENA’s healthcare market will post a five-year CAGR of 6.6% in US dollar terms. The report suggested that urbanisation, ageing demographics and a rising burden of chronic diseases will rapidly boost the demand for healthcare in the MENA region. With governments attempting to diversify their economies and reduce their vulnerability to oil price volatility, the private sector is likely to take on some of the healthcare burden, including projects through public-private partnerships.

In line with these predictions, Al Masah Capital data suggested that the MENA healthcare market will be worth US$ 144 billion by 2020, while the private sector’s share in healthcare spending is expected to reach 33% by 2020.

2.1.1 Highlights on MENA Healthcare Industry

 Medical device market to grow at a CAGR of 9.3% between 2018-2023  Medical technology market set to grow to US$ 11 billion by 2021  Drivers in the MENA healthcare market includes the following: i) Growing burden of non-communicable diseases ii) Population growth and rapid urbanisation iii) Changing focus from curative care to preventative care iv) Adoption of mandatory health insurance v) Increasing importance of Public-Private Partnerships vi) Smart application of modern technology vii) Adoption of integrated care models viii) Opportunities in areas of specialised care ix) Rehabilitation and long-term care x) Medical tourism as an integral part of economic diversification plans

2.1.2 Hospital Projects in the MENA Region

United Arab Emirates

The United Arab Emirates (UAE) government is extensively expanding and upgrading its healthcare system to develop a robust world-class healthcare infrastructure. According to Business Monitor International, healthcare expenditure in the UAE reached US$ 17 billion in 2017 and is expected to rise to US$ 21.3 billion by 2021.

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UNITED ARAB EMIRATES (UAE) 2020

Overall, healthcare spending is projected to account for 4.6% of a country’s GDP by 2026 from 4.2% in 2016. Meanwhile, given the increasing need for care, Alpen Capital projects that the requirement for beds in the country will reach 14,969 in 2022, representing a demand for 2,069 new beds. This demand is being mitigated by the 700 healthcare projects worth US$ 60.9 billion under various stages of development.

1) Burjeel Medical City, Abu Dhabi Project Cost: US$ 381 million Size: 1 million sqm Beds: 400 Owner: VPS Healthcare Group Project Completion: Q4 2019

2) Sheikh Khalifa Central Hospital, Fujairah Project cost: US$ 235 million Size: 57,800 sqm Beds: 300 Owner: Ministry of Presidential Affairs Project completion: Q2 2019

3) Danat Al Emarat Hospital for Women and Children – Phase 2, Abu Dhabi Project cost: US$ 81.6 million Size: N/A Beds: 100 Owner: UEMedical Project Completion: Mid-2020

Kuwait

According to a report by Alpen Capital, the healthcare market in Kuwait is projected to reach US$ 5.8 billion in 2022, registering a CAGR of 3.4% from 2017. Given the growing size of the healthcare market, the country is likely to witness a requirement of 9,807 beds in 2022, implying an additional demand for over 1,200 beds from 2017. The Ministry of Health and the Ministry of Public Works announced a US$ 4.42 billion project to replace or expand nine operating hospitals within the next ten years. The goal is to add 5,400 beds, 150 operating rooms, and 500 outpatient clinics to the current 7,095 hospital beds countrywide. Meanwhile, the private healthcare market is estimated to grow by 15 to 20% in the coming years.

1) New Al Jahra Hospital, Al Jahra Project Cost: US$ 1 billion Size: 426,000 sqm (main building) Beds: 1,171 Owner: Amiri Diwan and the State of Kuwait Project Completion: TBC

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2) Farwaniya Hospital Expansion, Kuwait City Project Cost: US$ 928 million Size: N/A Beds: Additional 955 Owner: Ministry of Health, Kuwait Health Assurance Company (KHAC) Project Completion: TBC

3) Sabah General Hospital Expansion, Al Sabah Project Cost: US$ 617 million Size: 265,000 sqm Beds: Additional 617 Owner: Ministry of Health, Kuwait Health Assurance Company (KHAC) Project Completion: July 2019

Saudi Arabia

From an estimated US$ 44.3 billion in 2017, health expenditure in Saudi Arabia is projected to grow at a CAGR of 6.1% to US$ 59.5 billion in 2022, according to Alpen Capital. The growth is likely to be driven by a CAGR of 2.0% in the population, rise in the cost of treatment and increase in health insurance coverage. According to the latest figures from Aon Hewitt, the Ministry of Health is expected to spend close to US$ 71 billion in the five-years ending in 2020. Meanwhile, research from Knight Frank indicates that to keep pace with population growth, Saudi Arabia would require an additional 5,000 beds by 2020 and 20,000 beds by 2035, based on the current density of beds. Based on the global average of bed density, Saudi Arabia faced a gap of 14,000 beds in 2016, and this gap is expected to widen to 40,000 beds by 2035.

1) King Fahad Medical City Expansion, Riyadh Project Cost: US$14 billion Size: 1.2 million square foot Beds: 600 Owner: Ministry of Health Project Completion: TBC

2) King Abdullah Bin Abdulaziz Medical Complexes – Riyadh & Jeddah Project Cost: US$ 6.8 billion Size: 1.1 million sqm each Beds: 1,500+ each Owner: Ministry of Interior Project Completion: TBC

3) King Khalid Medical City, Dammam Project Cost: US$ 1.27 billion Size: 700,000 sqm Beds: 1,500 Owner: Ministry of Health, King Khaled Mega Project Management Office Project Completion: Est. 2020

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Egypt

According to 2014 statistics from the World Health Organization (WHO), the most recent data available, health expenditure accounts for 5.6% of Egypt’s gross domestic product (GDP). Meanwhile, Colliers International has reported that the demand for healthcare services is expected to grow continuously and, in order to reach 76,000 new beds by 2020, Egypt will require a further investment of US$ 16 - 21 billion. The demand is expected to reach to up to 178,000 new beds requiring an investment of US$ 38 - 60 billion by 2050

1) Batterjee Medical City, Alexandria Project Cost: US$ 500 million Size: N/A Beds: 300 Project Completion: Q4 2019

2) Children’s Cancer Hospital Egypt 57357 Extension, Cairo Project Cost: US$ 200 million Size: 215,660 sqm Beds: 300 (total bed capacity) Owner: Association of Friends of National Cancer Institute (AFNCI) Project Completion: 2020

3) The Global Hospital, Alexandria Project Cost: US$ 72 million Size: 37,000 sqm Beds: 192 Owner: The Global Hospital Co. Project Completion: TBC

Bahrain

According to a report by Alpen Capital, health expenditure in Bahrain is anticipated at US$ 2.4 billion in 2022, signifying a CAGR of 5.1% from an estimated US$ 1.8 billion in 2017. The growing size of the population, proposed mandatory health insurance, lifestyle ailments and the rising cost of care are the factors aiding growth. The country’s hospital bed requirement is projected at 2,979 in 2022, suggesting annual average growth of 2.0% from 2017. The liberalisation of the sector, with foreign companies being allowed to own 100% in private healthcare facilities, will lend a push to the development of the industry.

1) King Abdullah Bin Abdulaziz Medical City, Durrat Al Bahrain Project Cost: US$ 1 billion Size: 1 million sqm Beds: 264 (Phase 1), 500 on completion Owner: Bahrain Ministry of Health Project Completion: Q1 2021

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2) Mohammed Bin Khalifa Cardiac Hospital, Awali Project Cost: US$ 106 million Size: 44,000 sqm Beds: 150 Owner: Supreme Council of Health Development Project Completion: TBC

3) Muharraq Hospital Complex, Muharraq Project Cost: US$ 81.7 million Size: TBC Beds: 210 Project Completion: 2020 (Phase 1)

Oman

From an estimated US$ 3.2 billion in 2017, current healthcare expenditure in is expected to grow at a CAGR of 9.1% to US$ 4.9 billion in 2022, according to a report published by Alpen Capital. To accommodate the growing base of patients, the bed requirement in Oman is anticipated to grow at a CAGR of 3.2% through to 2022, translating into a demand for more than 1,100 new beds to reach a capacity of 7,937 beds.

1) Sultan Qaboos Medical City Complex, Barka Project Cost: US$ 1.5 billion Size: 5 million sqm Beds: 2,000 Owner: Ministry of Health, National Development and Investment Company (Tatweer) Project Completion: 2021

2) International Medical City, Salalah Project Cost: US$ 1 billion Size: 800,000 sqm Beds: 800 Owner: Apex Medical Group (AMG), Subsidiary of Saudi Arabias Al Joaib Group Project Completion: TBC

3) Royal Oman Police Hospital, Muscat Project Cost: US$ 553 million Size: 1 million sqm Beds: 600 Owner: Royal Oman Police Project Completion: TBC

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2.2 Healthcare in Gulf Cooperation Council (GCC) Countries 2.2.1 Overview Amidst an ageing and expanding population, and the increasing prevalence of lifestyle diseases, the healthcare sector is fast emerging as a priority for Gulf Cooperation Council (GCC) countries as they work to diversify their economies away from a reliance on oil production. With governments continuing to pass reforms in their healthcare systems and introduce regulatory changes to improve the efficiency and quality of services, the current healthcare expenditure in the GCC is projected to reach US$ 104.6 billion in 2022 from an estimated US$ 76.1 billion in 2017, implying a CAGR of 6.6%, according to a 2018 GCC Healthcare Industry Report by Alpen Capital. Historically, government authorities in the GCC have functioned as both investors and operators of healthcare facilities, however, as their roles are now being adapted to that of policymakers and regulators only, there is a marked increase in participation by private players. Various National Transformation Plans (NTPs) and policy programmes such as the UAE Vision 2021 and the Saudi Vision 2030 are outlining long-term government strategies to expand the role of the private healthcare sector and create additional capacity for their growing markets. In turn, increasing investments by these sectors is expected to create a strong demand for pharmaceutical products, medical equipment and supplies, hospital services and healthcare professionals, easing the demand on the public sector. In addition to infrastructure investments, customer centricity will play an increasingly important role in the evolution of the region’s healthcare industry with patient experience becoming a priority for both public and private players. Major developments in technology, an influx of medical tourists, as well as changing patient needs are also emerging as major drivers for the bourgeoning GCC healthcare landscape.

2.2.2 Trends in GCC Healthcare Industry  Increasing emphasis on PPP models  Surge in deal flows  Roll out of mandatory health insurance  Growing focus on preventive care  Rising investments in specialised centres  Growth of home health services  Technological transformations

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2.2.3 National Agenda for a World-Class Healthcare System

2.2.4 Medical Tourism in GCC According to Alpen Capital, medical tourism is an integral part of the economic diversification plans of the GCC countries and, subsequently, has been receiving stimulus from governments. With improving infrastructure and quality of services, the region will not only experience a rise in medical tourists but also may witness a drop in outbound medical tourism. The UAE is one of the fastest growing medical tourism hubs globally. In 2018, welcomed 326,649 medical tourists - a 9.5% increase from 2015 - and aims to receive 500,000 tourists by 2020 by relaxing visa procedures and holding promotions generating revenues of US$ 707.7 million. Abu Dhabi is also establishing a medical tourism network to attract and serve patients from Russia, China and India. Following in the footsteps of the UAE, other GCC countries are also working towards building a robust infrastructure and investing in state-of-the-art technologies to appeal to international medical tourists. Bahrain is hoping to benefit from the rise in medical tourism, in particular when it comes to patients visiting from Saudi Arabia, according to Oxford Business Group. Significant projects include Dilmunia Health Island and the King Abdullah Medical City, with media reports suggesting that Bahrain is targeting Russian investors to develop healthcare facilities for medical tourists. Meanwhile, in Oman, public healthcare is perceived as being of high quality for a middle-income country, which allows the Sultanate to compete in the medical tourism industry for incoming patients. Oman is currently constructing the International Medical City, which is poised to become the centrepiece of healthcare tourism benefiting local, regional and international healthcare patients alike. The Government of Kuwait has ambitions to welcome 440,000 visitors a year by 2024 and is pressing ahead with multiple plans that will see billions of dollars invested in projects. Plans are also in place to establish a Supreme Commission for Tourism to initiate its tourism strategy, and Kuwait is also planning

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UNITED ARAB EMIRATES (UAE) 2020 to promote medical tourism in its own country by developing world-class healthcare facilities. In Saudi Arabia, as most of the tourism involves religious pilgrimages with tourist visas difficult to obtain, this makes the medical tourism industry a complicated industry, according to the Medical Tourism Index. However, the government’s spending on medical technology and state-of-the-art facilities can someday represent real competition to other countries in the region. According to Medical Tourism Association, GCC countries which have a high medical tourism index ranking in the Arabic region in 2017 are Dubai (1st), Abu Dhabi (2nd), Oman (7th), Kuwait (9th), Saudi Arabia (10th), and Bahrain (11th).

2.3 Healthcare Market in United Arab Emirates

2.3.1 Overview

As one of the most economically developed and diversified markets in the Middle East, the United Arab Emirates (UAE) has a strong healthcare infrastructure. The creation of a world-class healthcare infrastructure is a top priority for the Government of the UAE and, as a result, the sector has advanced and expanded significantly during the past few years.

The World Health Organization has determined that a third of the adults in the UAE are obese, and one out of five people live with diabetes. As the incidences of lifestyle diseases increase, these populations, supported by relatively high levels of income, will demand greater quality of healthcare. The government’s has focused on developing a healthcare infrastructure to address this demand.

Both federal and emirate level governments regulate healthcare in the UAE. Federal-level legislation began in the 1970s and 1980s and there are pending legislative reform initiatives to facilitate the development of the healthcare industry. The UAE Government is liberalizing policies to attract foreign investments to improve the healthcare standard and boost the healthcare industry.

The UAE’s health expenditure reached a value of $13.7 billion (AED 50.3 billion) in 2018. This includes healthcare expenditure from the seven emirates in addition to their contribution to the federal budget. There is an expectation for this figure to reach $14.4 billion (AED 53 billion) in 2019, a 5.4 percent y-o-y increase. The forecast on spending is to rise to $18.3 billion (AED 67.2 billion) by 2023, which translates to a local currency and US dollar compound annual growth rate of six percent. A 10-year forecast to 2028, health expenditure is expected to rise to $26 billion (AED 95.5 billion). Overall healthcare spending is expected to account for 3.6 percent of the country's GDP by 2028, gradually increasing from 3.4 percent in 2018, according to Business Monitor International (BMI).

Government commitment to the healthcare sector is one of the key drivers of growth within the UAE's healthcare market, particularly given that public spending accounts for over two thirds of overall healthcare expenditure. In the 2019 federal budget, a total of $16.4 billion (AED 60.3 billion) was approved for public spending, up 17.3 percent from $14 billion (AED 51.4 billion) from the 2018 budget. While this does not constitute total government expenditure in the UAE, which derives from overall spending at the respective Emirati level, it is, nonetheless, a solid indicator of the UAE's fiscal stance. As such, the federal government has made fiscal consolidation a priority over the past two years, efforts which began after oil prices slumped in late 2014.

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UAE government has introduced a new health insurance program in Dubai in 2015 to support nationals not covered under any other government funded health insurance scheme. This scheme benefited around 130,000 by offering healthcare at 23 private hospitals and more than 500 medical clinics in and around Dubai. The Dubai Health Authority (DHA) announced in June 2016, that all Dubai residents should be covered by health insurance and this is tied to the renewal and issuance of their UAE residence visas.

The UAE government wants to boost the number of medical tourists coming to the UAE in order to establish Dubai as a center of healthcare excellence in the region. The country has a robust transportation and logistics infrastructure and is geographically well positioned to be the center of a transportation network that links the economies of India and China to Europe and the United States. These factors also make the country an attractive location for establishing a regional distribution center for medical devices.

According to investment experts, some of the biggest UAE opportunities are likely to be found in healthcare projects. For instance, “Unison”, a public-private partnership between GE Healthcare, the UAE Ministry of Health and Prevention (MoHAP) and Abu Dhabi International Medical Services (ADI) aims to bring together the best of healthcare technology, hospital management, and patient care into one group of eleven radiology departments spread across the UAE. These types of partnerships are emblematic of the government’s efforts to privatize the public healthcare sector in the country.

The MoHAP in 2017 announced that all healthcare facilities in the UAE will have international accreditation by medical bodies from the US, Canada or Australia by 2021. Currently, nearly 70 percent of more than 4,000 facilities, including hospitals, ambulatory services, clinics, polyclinics and primary care centers, have international accreditation.

In 2018, the major players in the private healthcare market in the UAE includes NMC Healthcare, Al-Noor Medical Company, VPS Healthcare, Tumbay group, Al-Zahra Group, Belhoul Lifecare, Emirates Healthcare, Gulf Healthcare International, Gulf Medical Projects Company, Zulekha Hospital, Saudi German Hospital Group, GE Healthcare and Aster DM Healthcare.

2.3.2 Medical Device Market

In terms of medical devices, the UAE is an import driven market that is growing rapidly to keep pace with the country’s expanding healthcare infrastructure. The government and private healthcare sector are investing heavily to provide countrywide healthcare solutions to the residents, expats, and medical tourists.

Fitch Solutions projects that the medical device market in the UAE will register a 2018-2023 CAGR of 5.2%, below the previously projected 2018-2023 CAGR of 7.1%, which will take the value to AED4.6bn (USD1.3bn) by 2023. Oil sector weakness will drag on economic growth, which will contain medical device consumption.

Medical device market drivers include international investment, urban expansion, the increasing burden of chronic diseases, the expansion of the private healthcare system, the increasing number of start-ups in the private healthcare sector, the development of the home healthcare market, increasing medical tourism with Dubai positioned as a hub, compulsory health insurance in Abu Dhabi and Dubai, high capital expenditure in new healthcare infrastructure, the development of telemedicine services and IoT based

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UNITED ARAB EMIRATES (UAE) 2020 healthcare systems, the adoption of new technologies such as 3D printing, AI and robotics, strong import reliance, and major regional headquarters established by multinationals.

Medical device market barriers include the Gulf Cooperation Council (GCC) spat with Qatar that will hit investor sentiment in the UAE over the long term, security threats, the operational autonomy of each Emirate with repercussions for the healthcare sector, oil sector weakness hindering the economic performance, the high number of expatriate workers affecting demographics and healthcare, the fragmentation of the healthcare system led by Abu Dhabi and Dubai, a lack of federal health insurance, a lack of transparency in government tendering, limited domestic production, and increasing market competition.

Medical device imports are likely to recover in 2020, supported by increasing healthcare demand. The market will continue to rely heavily on imports due to little domestic production. The UAE will remain a leading regional hub. Using collated monthly mirror trade data, imports fell by 12.2% y-o-y to USD236.3mn in Q219. Overall, imports decreased by 5.7% to USD1.0bn in the 12 months to June 2019.

Medical device exports will continue to fluctuate, being mainly accountable to re-exports. Although the GCC spat with Qatar will hit investor sentiment in the region, the UAE will remain a regional re-export base. Using collated monthly mirror trade data, exports fell by 36.1% y-o-y to USD6.5mn in Q219. However, exports increased by 14.7% to USD55.8mn in the 12 months to June 2019.

2.3.3 Medical Device Regulations

All medical devices must be approved by the Ministry of Health and Prevention (MoHAP) Drug Registration and Control Department. Imported medical devices will not be cleared by Customs unless a pre-approval for importation of the consignment is issued by MoHAP.

If the exporter company/manufacturer has no legal presence in the UAE, it will have to appoint a local representative to act on its behalf to register the devices. The local representative must be appointed by written contract stating the appointment of the local authorized representative by the company. The local representative should be licensed by the MoHAP.

The application to place a medical device on the UAE market must be made by the manufacturer or its authorized representative. The manufacturer or its authorized representative is required to maintain objective evidence on the safety and effectiveness of the medical device.

The Ministry of Health and Prevention’s Registration and Drug Control Department shall accept accreditation of conformity assessment bodies from the European Union, Australia, Canada, the United States, Japan, and Singapore.

The registration or listing of a medical device shall be valid for five years unless suspended or revoked by the MoHAP's Registration and Drug Control Department, or terminated by the registrant. Applications for renewal of registration shall be made at least 90 days before the expiry date of registration of the device. The application shall include submission of filled in application form and information pertaining to changes that were made to a registered device.

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Medical devices are classified under Class I (low risk), Class II and III (medium risk) and Class IV (high risk). In addition, in-vitro diagnostic medical devices are classified under Class A (low individual risk and low public health risk), Class B (moderate individual risk and/or low public health risk), Class C (high individual risk and/or moderate public health risk) and Class D (high individual risk and high public health risk).

2.3.4 Healthcare Leading Sub-Sectors

Pharmaceuticals As one-of-the-largest, most-developed economies in the Middle East, the UAE pharmaceutical market presents significant growth opportunities for multinational drug makers. The expansion of private healthcare coverage and the modernization of health infrastructure will contribute to drive prescription market growth. Stricter pricing controls, generic drug substitution and an unfavorable demographic profile will act headwinds to firms over the coming years.

Medical Equipment The projected growth of UAE’s medical equipment market broadly mirrors that of other sectors. BMI estimated in 2015 that medical device market would grow at a compound annual rate of 8.2 percent from $967 million in 2015 to $1.4 billion in 2021. Given that the UAE produces relatively little medical equipment domestically, this means significant business opportunities for international companies.

Healthcare Information Technology The UAE’s Healthcare Information Technology market is set to grow swiftly in coming years. Technavio, a market research company that focuses on emerging markets, estimated in 2015 that this market would grow at a compound annual growth rate of over 11 percent from 2014 to 2019. This growth is partly driven by government initiatives around the digitization of electronic medical records.

Education and Research In order to meet its ever-increasing need for qualifies medical professionals, the UAE has sought to grow its nascent medical education and training capacity. At the same time, it has endeavored to make the country a regional hub for medical research and events.

2.3.5 UAE Market Entry and Barriers

A law allowing 100 percent foreign ownership of companies in the UAE for certain sectors is now in force. The law is designed to make the country more attractive for investors while limiting the impact on local businesses. Foreign companies seeking to establish an entity onshore in the UAE would previously have to team up with a UAE national, who was required to own 51 percent of the shares of the company.

The plan is to aim to boost the UAE’s attractiveness for investment, create jobs and diversify the economy. There are also free-zones with the UAE which offers a wide variety of benefits to businesses and a degree of flexibility including:

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 100 percent foreign ownership through branches, single or multiple shareholder companies - known as Free Zone Enterprises (FZEs), Free Zone Companies (FZCOs) or Free Zone Limited Liability Companies (FZ-LLC)  No national agent required for branch offices of foreign companies  Special assistance in getting work permits for staff

Some of the barriers in UAE market include:

 A small, young, and fragmented population  The high number of expatriate workers affecting demographics and healthcare  The fragmentation of the healthcare system led by Abu Dhabi and Dubai  A lack of federal health insurance  A shortage of qualified healthcare personnel  Customer Price Sensitivity

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3.0 TRADE STATISTICS

3.1 MULTILATERAL TRADE – UAE’S TRADE STATISTICS

Table 1.1 UAE’s Top 10 Import Sources of Rubber Products No Partner Country USD Million % Share % Change 2016 2017 2018 2016 2017 2018 2018/2017

World 4,263.5 3,906.9 3,567.8 100.0 100.0 100.0 -8.7 1 China 1,912.0 1,673.7 1,509.9 44.8 42.8 42.3 -9.8 2 Japan 368.6 330.7 265.7 8.6 8.5 7.4 -19.7 3 India 268.4 279.5 271.7 6.3 7.2 7.6 -2.8 4 South Korea 224.0 195.2 165.0 5.3 5.0 4.6 -15.5 5 USA 194.3 187.9 173.1 4.6 4.8 4.9 -7.8 6 Germany 161.9 160.0 165.6 3.8 4.1 4.6 3.5 7 Italy 151.1 122.1 139.8 3.5 3.1 3.9 14.6 8 Thailand 127.7 140.4 123.4 3.0 3.6 3.5 -12.1 9 France 70.6 72.0 82.1 1.7 1.8 2.3 14.1 10 United Kingdom 81.8 87.0 83.2 1.9 2.2 2.3 -4.4 16 Malaysia 44.8 48.2 59.4 1.1 1.2 1.7 23.0 *Note: Statistics are based on world exports to UAE Source: World Trade Atlas

Table 1.2 UAE’s Top 10 Imports of Rubber Products No Description USD Million % Share % Change 2016 2017 2018 2016 2017 2018 2018/2017

All Rubber Product 4,263.5 3,906.9 3,567.8 100.0 100.0 100.0 -8.7 1 Footwear 1,503.6 1,316.7 1,158.7 35.3 33.7 32.5 -12.0 2 Tyres 1,223.3 1,160.0 1,018.0 28.7 88.1 28.5 -12.2 3 Wire and Cables 783.3 726.8 686.3 18.4 62.7 19.2 -5.6 4 Foam Products 202.9 157.1 151.9 4.8 21.6 4.3 -3.3 5 Seals and Gaskets 77.2 98.4 86.7 1.8 62.7 2.4 -11.9 6 Hoses 98.6 85.6 84.9 2.3 87.0 2.4 -0.8 7 Other Moulded Parts 77.1 70.3 74.5 1.8 82.1 2.1 6.0 8 Beltings 67.5 68.9 61.7 1.6 98.0 1.7 -10.4 9 Catheters 51.3 55.9 59.1 1.2 81.1 1.7 5.7 10 Gloves 25.9 28.3 39.6 0.6 50.7 1.1 39.9 *Note: Catheters HS901839 include rubber and non-rubber catheters Statistics are based on world exports to UAE Source: World Trade Atlas

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Table 1.3 UAE's Top 10 Import Sources of Rubber Gloves (HS401511 & HS401519)

No Partner USD Million % Share % Change Country 2016 2017 2018 2016 2017 2018 2018/2017

World 25.9 28.3 39.6 100.0 100.0 100.0 39.9 1 Malaysia 15.6 17.2 28.0 60.2 60.8 70.7 62.9 2 China 4.1 3.5 3.5 15.8 12.4 8.8 0.6 3 Thailand 2.3 3.1 4.0 8.9 11.0 10.1 31.0 4 Germany 0.9 1.9 1.0 3.5 6.7 2.5 -49.9 5 India 0.5 0.7 0.6 1.9 2.5 1.5 -15.8 6 Sri Lanka 0.4 0.5 0.8 1.5 1.8 2.0 50.4 7 USA 1.2 0.5 0.6 4.6 1.8 1.5 12.9 8 Belgium 0.1 0.4 0.3 0.4 1.4 0.8 -16.6 9 United Kingdom 0.2 0.2 0.1 0.8 0.7 0.3 -63.4 10 France 0.2 0.2 0.4 0.8 0.7 1.0 171.9 *Note: Statistics are based on world exports to UAE Source: World Trade Atlas

Table 1.4 UAE's Top 10 Import Sources of Surgical Gloves (HS401511)

No Partner Country USD Million % Share % Change 2016 2017 2018 2016 2017 2018 2018/2017

World 3.3 4.4 5.5 100.0 100.0 100.0 25.2 1 Malaysia 1.1 1.6 2.9 32.7 37.5 52.8 76.3 2 China 0.5 0.7 0.8 14.5 16.7 13.8 3.8 3 India 0.4 0.4 0.5 11.2 9.7 8.9 14.3 4 Germany 0.4 0.9 0.5 12.9 21.6 8.3 -52.1 5 Belgium 0.1 0.3 0.3 2.3 7.7 5.2 -14.8 6 Thailand 0.7 0.1 0.2 20.1 3.0 4.2 74.6 7 Sri Lanka - 0.1 0.2 N/A 2.6 3.1 46.4 8 France 0.0007 0.01 0.1 0.0 0.2 2.7 1,963 9 USA 0.1 0.01 0.02 2.4 0.2 0.3 127.7 10 Kenya - - 0.01 N/A N/A 0.2 N/A *Note: Statistics are based on world exports to UAE Source: World Trade Atlas

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Table 1.5 UAE's Top 10 Import Sources of Non-Surgical Gloves (HS401519)

No Partner Country USD Million % Share % Change 2018/2017 2016 2017 2018 2016 2017 2018 World 22.5 24 34.2 100.0 100.0 100.0 42.6 1 Malaysia 14.5 15.5 25.1 64.4 64.8 73.4 61.4 2 Thailand 1.6 2.9 3.8 7.1 12.2 11.0 29.0 3 China 3.6 2.7 2.7 15.9 11.5 8.0 -0.3 4 Germany 0.5 1.0 0.5 2.2 4.0 1.5 -47.8 5 USA 1.1 0.5 0.6 4.9 2.1 1.6 11.3 6 Sri Lanka 0.4 0.4 0.6 1.8 1.7 1.8 51.5 7 India 0.1 0.2 0.1 0.6 1.0 0.2 -68.9 8 United Kingdom 0.2 0.2 0.1 0.8 0.7 0.2 -57.5 9 France 0.2 0.1 0.3 1.0 0.6 0.8 80.9 10 Indonesia 0.1 0.1 0.1 0.3 0.4 0.4 26.5 *Note: Statistics are based on world exports to UAE Source: World Trade Atlas

Table 1.6 UAE's Top 5 Import Sources of Condoms (HS401410)

No Partner Country USD Million % Share % Change 2016 2017 2018 2016 2017 2018 2018/2017

World 3.8 9.0 7.8 100.0 100.0 100.0 -12.4 1 Malaysia 1.4 2.6 2.9 35.9 28.6 36.8 12.5 2 Thailand 1.0 2.1 2.7 27.6 23.8 34.3 25.9 3 India 0.6 1.1 1.3 16.7 12.1 16.8 21.3 4 China 0.4 0.8 0.6 10.3 9.2 7.7 -27.2 5 Belgium - - 0.1 N/A N/A 1.0 N/A *Note: Statistics are based on world exports to UAE Source: World Trade Atlas

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Table 1.7 UAE's Top 10 Import Sources of Catheters (HS 901839)

No Partner Country USD Million % Share % Change 2016 2017 2018 2016 2017 2018 2018/2017

World 51.3 55.9 59.1 100.0 100.0 100.0 5.7 1 Netherlands 12.8 14.7 17.0 25.0 26.4 28.8 15.3 2 Belgium 8.8 7.1 7.9 17.2 12.8 13.4 11.2 3 Germany 9.2 10.1 7.8 17.9 18.1 13.2 -22.8 4 China 4.3 5.3 5.2 8.4 9.5 8.8 -1.9 5 Japan 2.8 3.3 4.2 5.4 5.9 7.1 28.0 6 USA 3.1 3.9 3.8 6.0 7.0 6.4 -4.8 7 India 2.9 2.8 3.6 5.6 5.1 6.1 26.3 8 Thailand 1.4 1.1 1.9 2.7 1.9 3.3 77.3 9 United Kingdom 0.2 0.6 1.2 0.5 1.0 2.1 114.9 10 Singapore 0.1 0.1 0.8 0.2 0.2 1.3 467.4 14 Malaysia 0.01 0.002 0.1 0.02 0.003 0.2 8,183.6 *Note: Catheters HS901839 include rubber and non-rubber catheters Statistics are based on world exports to UAE Source: World Trade Atlas

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UNITED ARAB EMIRATES (UAE) 2020

3.2 BILATERAL TRADE

Table 2.1 Malaysia’s Export of Rubber Products in 2018 (by destination)

No Country Value (RM Million) % Share

1 USA 6,874.6 29.1

2 Germany 1,503.9 6.4

3 Japan 1,355.2 5.7

4 China 1,196.8 5.1

5 United Kingdom 825.8 3.5

6 Australia 773.9 3.3

7 Singapore 724.1 3.1

8 Brazil 635.3 2.7

9 Italy 612.4 2.6

10 Thailand 540.4 2.3

25 UAE 193.4 0.8

ROW 8,409.4 35.6

Total 23,645.4 100.0

Source: Department of Statistics, Malaysia

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UNITED ARAB EMIRATES (UAE) 2020

Table 2.2 Malaysia’s Export of Rubber Products to UAE by Sector

Year Rubber Products (RM Million)

Footwear General Rubber Industrial Inner Latex Tyres Total Goods Rubber Goods Tubes Goods 2014 14.6 12.4 14.7 - 62.6 13.9 118.3 2015 27.2 11.4 17.7 0.03 84.6 12.4 153.3 2016 22.6 13.7 17.3 - 71.8 17.2 142.7 2017 31.8 6.8 16.1 0.04 86.8 20.6 162.1 2018 29.6 11.4 14.3 - 125.7 12.5 193.4 Source: Department of Statistics, Malaysia

Table 2.3 Malaysia’s Top 10 Export of Rubber Products to UAE

Value (RM million) % Share CAGR % No Product Classification 2014 2015 2016 2017 2018 2018 2014-2018 1 Gloves 54.0 77.4 64.5 73.9 112.8 58.3 20.2 2 Footwear 14.6 27.2 22.6 31.8 29.6 15.3 19.3 3 Tubes, Pipes and Hoses 14.3 17.6 17.3 15.9 13.9 7.2 -0.7 4 Tyres 14.1 12.7 17.5 21.3 12.8 6.6 -2.3 5 Condoms 5.9 5.9 5.7 10.9 11.8 6.1 19.0 6 Fenders 1.0 2.2 6.0 1.3 4.7 2.4 47.8 7 Plates, Sheets and Strips 3.7 1.2 1.0 1.8 2.0 1.0 -14.7 8 Precured Tread 2.6 2.8 2.2 1.1 1.7 0.9 -10.6 9 Floor Coverings and Mats 1.9 1.5 0.9 1.1 1.2 0.6 -11.0 10 Latex Thread 1.1 0.3 0.5 1.0 0.5 0.3 -15.5 Others 5.1 4.4 4.3 1.9 2.5 1.3 -16.4 Total 118.3 153.3 142.7 162.1 193.4 100.0 13.1 Source: Department of Statistics, Malaysia

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UNITED ARAB EMIRATES (UAE) 2020

Table 2.4 Malaysia’s Export of Rubber Medical Devices to UAE Value (RM million) % Share CAGR % No Product Classification 2014 2015 2016 2017 2018 2018 2014-2018 1 Gloves 54.0 77.4 64.5 73.9 112.8 90.6 20.2 - Surgical Gloves 7.8 6.5 4.6 7.0 11.8 9.5 10.8 - Non-Surgical Gloves 46.2 71.0 60.0 66.9 101.0 81.1 21.6 2 Condoms 5.9 5.9 5.7 10.9 11.8 9.4 19.0 3 Catheters* 1.0 - 0.03 0.01 0.01 0.01 -70.2 Total 60.9 83.4 70.2 84.9 124.6 100.0 19.6 *Note: HS codes for catheters are 901839100 and 9018391000 Source: Department of Statistics, Malaysia

Table 2.5 Malaysia’s Import of Rubber Products from UAE by Sector Year Rubber Products (RM Million) Footwear General Rubber Industrial Rubber Inner Tubes Latex Tyres Total Goods Goods Goods 2014 0.04 1.7 1.2 - 21.5 0.1 24.6 2015 0.17 0.7 0.2 - 0.03 0.1 1.2 2016 1.1 1.0 0.1 - 0.2 0.5 3.0 2017 1.1 1.1 0.2 0.01 0.1 0.5 3.0 2018 2.0 0.9 0.3 - 0.6 1.8 5.5 Source: Department of Statistics, Malaysia

Table 2.6 Malaysia’s Top 10 Imports of Rubber Products from UAE Value (RM million) % Share CAGR % No Product Classification 2014 2015 2016 2017 2018 2018 2014-2018 1 Footwear 0.04 0.2 1.1 1.1 2.0 35.9 163.6 2 Tyres 0.1 0.1 0.5 0.5 1.8 32.6 135.7 3 Seals and Gaskets 1.3 0.6 0.7 0.9 0.6 10.6 -17.6 4 Gloves - 0.01 0.2 - 0.4 6.8 N/A 5 Insulated Wire, Cable and - 0.2 0.1 0.05 0.2 3.6 N/A Other Electric Conductors 6 Foam Products - 0.02 0.01 0.1 0.2 3.6 N/A 7 Other Articles of 0.4 0.1 0.1 0.02 0.1 2.3 -23.2 Unhardened Vulcanised Rubber 8 Other Inflatable Articles - - - 0.04 0.1 1.5 N/A 9 Rubber Balls 0.03 - 0.02 - 0.1 1.1 17.2 10 Beltings 0.1 - 0.02 0.02 0.04 0.8 -15.7 Others 22.8 0.1 0.2 0.2 0.1 1.1 -77.1 Total 24.6 1.2 3.0 3.0 5.5 100.0 Source: Department of Statistics, Malaysia

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Table 2.7 Malaysia’s Import of Rubber Medical Devices from UAE

Value (RM million) % Share CAGR % No Product Classification 2013 2014 2015 2016 2017 2017 2013-2017 1 Gloves - 8.1 236.2 - 374.1 95.1 N/A - Surgical Gloves - 8.0 236.2 - - N/A N/A - Non-Surgical Gloves - 0.1 - - 374.1 95.1 N/A 2 Catheters* 21,549.80 - - - 19.4 4.9 -82.7 Total 21,549.80 8.1 236.2 - 393.5 100.0 -63.2 *Note: HS codes for catheters are 901839100 and 9018391000 Source: Department of Statistics, Malaysia

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4.0 IMPORTANT CONTACTS

Consulate General of Malaysia in Dubai, UAE Mr. Mohd Hasril Abdul Hamid Consul General

Address : Villa 83, Street 10D Mankhool, Bur Dubai, P.O.Box 4598, Dubai, United Arab Emirates Tel : +971-4-3985 843/ 847 Fax : +971-4-3985 809 Email : [email protected]; [email protected]

MATRADE in Dubai, UAE Mr. Omar Mohd Salleh Trade Commissioner

Address : Malaysia Trade Centre c/o Consulate General of Malaysia Lot 1-3 Ground Flr & 6-10 Mezzanine Flr, Al-Safeena Building, Near Lamcy Plaza Zaabeel Road, P.O. Box 4598 Dubai, United Arab Emirates Tel : +971-4-335 5528 Fax : +971-4-335 2220 Email : [email protected] Coverage: Bahrain, Iran, Iraq, Kuwait, Oman, United Arab Emirates, Iran & Qatar

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5.0 References

1) Country Profile https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html http://istizada.com/mena-region/ http://www.worldstopexports.com/uaes-top-10-exports/ http://www.worldsrichestcountries.com/top-uae-imports.html

2) Healthcare in Middle East and North Africa (MENA) Region https://www.arabhealthonline.com/content/dam/Informa/arabhealthonline/en/2020/downloads/HOSP ITAL_REPORT_HEALTHCARE_SERVICES.pdf

3) Healthcare in Gulf Cooperation Council (GCC) Countries https://www.arabhealthonline.com/content/dam/Informa/arabhealthonline/en/2020/downloads/AH_R EPORT_HEALTHCARE_SERVICES.pdf

4) Healthcare Market in United Arab Emirates https://www.export.gov/article?id=United-Arab-Emirates-Healthcare-Services https://www.fitchsolutions.com/corporates/healthcare-pharma/medical-device-forecast-revised-down- uae-21-11- 2019?fSWebArticleValidation=true&mkt_tok=eyJpIjoiTWpGaU5Ua3hOalZqWTJFMCIsInQiOiIwMnRZTWx FTVZGMU13SVRsZzBscU1wUzlxUng4S2lUbjRTd2RXTzRob3NXdDZZbjR2YlduYk8reDdaY01BXC9BYjQ3RzF5 SFlXOU4yZUxybUVuNGF0WThSc3VtYXg4aWpPMUV1TGczZGswNmFyVWNQbkdhaHl2XC96Tkg2VUdNclR yIn0%3D

5) Trade Statistics World Trade Atlas Department of Statistic Malaysia (DOSM)

6) Important Contacts https://www.kln.gov.my/web/are_dubai http://www.matrade.gov.my/en/75-about-matrade/worldwide-offices/463-united-arab-emirates-west- asia

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