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Investing in Dubai’s healthcare sector

June 10, 2021
by Healthcare World

Dubai is fast becoming a global hub for innovation and partnerships thanks to its unique investment climate, Dr Ibtesam Al Bastaki, Director, Investment and Partnership Department, Dubai Health Authority tells Sarah Cartledge

As the world still continues to fight the COVID-19 pandemic, most countries are focusing on their healthcare systems as an urgent need. Yet few have been as strategic as Dubai, which has in place its 2016-2021 strategy that has helped it cope with the viral assault. While the focus is firmly on the future, it has inbuilt resilience to deal with unexpected occurrences.

The vaccination programme is proving successful and case numbers are declining in the emirate, down from 4-5000 cases a day to 1600. Travellers are returning and some of the hotels are up to 70 per cent occupied. Despite this, most business is still being conducted online, a by-product of the global situation.

For Dr Ibtesam Al Bastaki, Investment and Partnership Director at Dubai Health Authority, the increase in online communication is an unexpected benefit. “It will open up opportunities because we are going as per the demand and supply. COVID’s impact is kicking off more technology companies, particularly in telemedicine,” she says.

“The whole country is working on a building a proper policy for telehealth at the federal government level and of course, boosting a lot of public private partnership projects,” she adds. “By distributing equally the risk between the public and the private sector, it offers better cost effectiveness and better efficiency.”

She feels the COVID outbreak has moved the focus away from the heavy budgetary-led government methodology, changing the whole working culture. “It’s like a knowledge transfer – learning from each other – and is one of the reasons why we want to do more PPP projects.”

Working in partnership

The Dubai Health Authority oversees the regulatory environment in the emirate as well as investment based on its Certificate of Needs programme. As part of its mission to transform Dubai into a leading healthcare destination, it fosters innovative and integrated care models and enhances community engagement.

Many of world’s largest hospitals and specialised centres have invested in Dubai’s healthcare sector thanks to the city’s unique investment climate, which provides a number of investment incentives in the healthcare sector. Various investment free zones offer attractive incentives and set up support for companies focusing on health technologies and innovations. There are several incubator programmes in Dubai to support health technology innovation, and DHA’s efforts with the Dubai Future Accelerator Program is a testament to the commitment and support to develop a robust health eco-system.

For smaller companies there is clearly opportunity within DHA’s vision and guidelines. “The market has a good competition level, so they have to be prepared for that,” Dr Al Bastaki says. “We have lots of clinics as well as big hospitals that are looking for small companies to provide their technology and software. Some of those are starting integration, so small companies really need to do their due diligence coming into the market to understand the business very well. They have to work out where they want to pitch or where the needs are.”

NABIDH – integrating public and private healthcare systems

DHA has already created NABIDH, a health information exchange platform that connects public and private healthcare facilities in Dubai to securely exchange trusted health information. The platform eliminates the need for physical exchange of health records between facilities, reducing the risk of clinical errors while increasing patient safety and experience. Through NABIDH, DHA aims to enhance the quality of healthcare services provided to its citizens and residents of Dubai.

“We have more than 2000 clinics in Dubai and we want them all to speak to each other,” says Dr Al Baskai. “At the end of the day it’s about connecting the various clinics or hospitals that one patient might visit, and making sure they have all the necessary information. It’s also where the payment methodology comes in. At a federal level we are looking to speak one language to ensure the safety and security of patients.”

Dubai is also looking at personal health records which will enable any hospital to have the necessary information to treat a patient. “Some information needs to be kept confidential between the patient and the specialist.”

PPP opportunities within Dubai

For Dr Al Bastaki and her team, the preparatory work behind any government initiated project is extensive and thorough. Balancing the ability for private players to enter the market, they look at the supply and demand gaps, identifying the opportunity for the private sector to enter. This is followed by an RFQ and an RFP process, workshops and discussions before the shortlist is drawn up.

“It depends on the size of the project,” she says. “Some projects are very simple and you can close the partnership, while others have a 25 year commitment from the government to the private sector so they work quite differently, depending on the size and value.”

At the moment a large infrastructure project, the Cardiology Centre of Excellence, is about to be announced and should be closed by the end of the year. “Hopefully within a couple of months we should be in a position to invite the private sector to manage, operate and complete the facilities for the long term,” she says.

Another area of need in Dubai is long term rehabilitation and home care is a big demand. The country has a rapidly ageing population, with an estimate 4.6-5.5m inhabitants by 2030. It is one of the fastest growing populations in the world and the number of UAE nationals over the age of 60 is expected to increase to eight per cent in 2030.

In addition, a high prevalence of chronic and non-communicable diseases increases the need for healthcare services and associated tertiary care expertise and chronic care management. “For this reason we prefer to partner with the private sector where they can manage the facilities they operate and as well as equipping them,” Dr Al Bastaki says.

Further PPP projects will be launched at Expo 2020 later in the year, along with the latest investment guide listing the top requirements for the country.

For Dr Al Bastaki, PPP is the future and way forward with the private sector. “You actually create more jobs because you open the market for different opportunities. It brings innovation into place, leading to more cost effectiveness and more efficiency, and thus quality of care. Partnering between the public and private sector brings many and unforeseen benefits.”

Contact Information:

iialbastaki@dha.gov.ae

www.dha.gov.ae

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