PROPERTY MARKET UPDATE
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FOREWORD Over the years, the emirate of Dubai has been tireless in its efforts in establishing itself as the preferred destination for trade, industry and business while providing an unparalled lifestyle to residents. As with other sectors including retail, hospitality, tourism and banking, Dubai is also making strides in healthcare, offering tremendous opportunities for operators, investors and healthcare professionals. Our maiden report on the sector explores the Dubai healthcare market at a local and global level. Some of the key themes of discussion include availability of healthcare professionals, hospital bed and patient capacity, medical tourism, upcoming projects as well as Dubai’s competitiveness in an international context.
CONTENTS 4
Healthcare in Dubai
6
Dubai Hospitals by Sector
8
Dubai Clinics and Health Centres
10
Healthcare Practitioners in Dubai
12
Hospital Bed Capacity and Number of Beds
14
Medical Tourism and Innovation
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Upcoming Projects
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HEALTHCARE PROPERTY MARKET UPDATE
HEALTHCARE IN DUBAI Achieving a world-class healthcare system is one of the main goals of the UAE Vision 2021 National Agenda. Aligning with this vision is the Dubai Healthcare Strategy 2016-21 - its key focus areas include providing access to high-quality healthcare services, disease prevention through educational initiatives, and positioning Dubai as a global health tourism destination. To be recognised as a global hub for health tourism and innovation, Dubai is also pressing ahead with efforts including new telehealth regulations and initiatives based around the concept of ‘wellness’. The mandatory health insurance law for Dubai, introduced in 2013, has helped improve public health and safety and has opened up the health insurance market to domestic and foreign players.
Population and Demographics According to the Dubai Statistics Centre, the total population of Dubai grew from 2.11 million in 2012 to 3.19 million in 2018 registering a CAGR of 7.2%. In 2018, males comprised 70% of the population compared to 30% females. People aged over 40 years consisted of 26.2% of the total population of the emirate. In Dubai, where there is a high incidence of lifestyle related diseases such as diabetes, coronary problems and other obesity-related ailments, 70-80% of healthcare problems in people occur after age 40, corresponding to an increase in the demand for healthcare services and related facilities.
Dubai Population, 2018 74 – 80+: 0.33%
80+ 74 - 79 70 - 74
60 – 74: 2.06%
65 - 69 60 - 64 55 - 59
40 – 59: 23.77%
50 -54 45 - 49
Age
40 - 44 35 -39 20 – 39: 55.69%
30 - 34 25 - 29 20 -24 15 - 19
00 – 19: 18.14%
10 -14 05 - 09 00 - 04 400,000
300,000
200,000
Male Population: 2,223,390 4
100,000
0
100,000
Female Population: 958,885
200,000
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HEALTHCARE PROPERTY MARKET UPDATE
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HEALTHCARE PROPERTY MARKET UPDATE
DUBAI HOSPITALS BY SECTOR Dubai has both government and privately-funded hospitals and medical facilities. Public healthcare services are administered by regulatory authorities in the UAE including Ministry of Health and Prevention (MOH), Health AuthorityAbu Dhabi (HAAD), the Dubai Health Authority (DHA) and the Emirates Health Authority (EHA). Between 2010-2018, Dubai’s healthcare industry, particularly the private sector, experienced substantial growth - the total number of private hospitals increased from 19 to 25, registering a CAGR of 3%. In 2017, DHA announced that 12 private hospitals will be opened by 2020 with an expected capacity of 875 beds. During the 2010-2018 period, the government hospitals grew from five to six, recording a CAGR of 2%. The number increased to six because in 2012, Hatta Hospital was added to the list of public hospitals in Dubai.
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HEALTHCARE PROPERTY MARKET UPDATE
Dubai Hospitals by Sector, 2010-2018 30
28
Number of Hospitals
26
26
25
25
25
25
22 19
20
19
15 10 5
5
5
2010
2011
6
6
6
6
6
6
2012
2013
2014
2015
2016
2017
6
0
Public Hospitals
2018
Private Hospitals
Source: Dubai Statistics and Dubai Health Authority
Dubai Hospitals by Sector, 2018 According to Dubai Statistics Centre, there were 31 hospitals in Dubai in 2018, of which 81% were owned and operated by the private sector. Of the remaining, DHA managed 13%, and MOH was responsible for 6%.
DHA 13% MOH 6%
Private 81%
Source: Dubai Statistics and Dubai Health Authority
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HEALTHCARE PROPERTY MARKET UPDATE
DUBAI CLINICS AND HEALTH CENTRES Between 2010 - 2018, the number of private clinics and healthcare centres increased from 1,314 to 2,174, registering a CAGR of 6.5%. The total number fluctuated between 2011 and 2014 as many were closed due to non-compliance with government regulations.
Dubai Clinics and Health Centres in Private Sector, 2010 - 2018
Number of Clinics and Health Centres
2,500 2,174
2,000 1,585
1,500
1,758
1,758
2016
2017
2,000 1,500 1,314 1,000
1,332 1,064
1,318 1,026
500 0 2010
2011
2012
2013
2014
2015
2018
Note; Official data from Dubai Statistics Center does not include medical centres and clinics in Dubai Healthcare City, a free zone with a network of core healthcare services providers.
Dubai Clinics and Health Centres in Public Sector, 2010 - 2018 By 2018, the number of public clinics and health centres declined noticeably, reflecting a CAGR of -2%.
24
Number of Clinics and Health Centres
22
23
22
22
22
22
20
23
23
21 19
18 16 14 12 10 8 6 4 2 0 2010
2011
Source: Dubai Statistics and Dubai Health Authority
8
2012
2013
2014
2015
2016
2017
2018
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MOH
DHA
42%
58%
HEALTHCARE PROPERTY MARKET UPDATE
In preparation of the Expo 2020, which is expected to attract around 25 million visits from 180 countries, the DHA has conducted developmental programs to improve hospitals, health centres and clinics to ensure the health and safety of visitors and residents. These efforts are expected to positively impact the growth of health centres and clinics in Dubai, with benefits lasting well beyond the duration of the event.
Source: Dubai Statistics and Dubai Health Authority
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HEALTHCARE PRACTITIONERS IN DUBAI Between 2010-2015, the rate of physicians per 1,000 population in Dubai fluctuated slightly before significantly rising to 3.35 in 2016. According to DHA’s annual statistical book, this made Dubai the location with the world’s second highest number of physicians per 1,000 population, second only to Germany. By 2017, the number dropped to 2.92. However, according to DHA data, Dubai still has one of the highest physician-to-population ratios in the world. Between 2010 – 2017, there was a 9% increase in the number of physicians in Dubai. With the expanding population and a rise in the number of hospitals, total physician population in Dubai is projected to reach 11,247 in 2020 from an estimated 9,472 in 2018, implying a CAGR of 9%. Beginning 2010, the number of nurses in Dubai evidently increased compared to physicians as a result of the UAE’s efforts to address a nursing shortage, caused due to low wages, low status and limited career progression, according to the Nursing and Midwifery Council of the UAE. A target was set to increase the number of nurses by 25-30% and Emirati nurses specifically from 8% to 10-16%. Future projections state that the number of nurses is expected to rise to 23,617 in 2020 at a CAGR of 10%.
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HEALTHCARE PROPERTY MARKET UPDATE
2017
21,516
11,247
2016
10,322
19,602
2015
9,472
17,858
18,493
16,515
8,693
2013
8,614
2012
7,783
2011
6,781
13,096
11,238
6,559
5,000
5,618
10,000
5,638
9,302
10,449
15,000
13,541
20,000
4,766
Total Nurse and Physician Population
25,000
23,617
Number of Nurses and Physicians in Dubai, 2010-2020F
2019F
2020F
0 2010
2014
Number of Nurses
2018F
Number of Physicians
Source: Dubai Health Authority
Number of Nurses Per 1,000 Population in Dubai and International Countries, 2015 10 Nurses/1,000 Population
8.8
8.6
8
7.0
6.9
6
5.6
5.1
5
4.6
4
3.4
2.6
2.5
2.4
1.5
2 0 UK
US
Kuwait
Dubai
Saudi Arabia
GCC Average
UAE
Oman
World Average
Jordan
Bahrain
Lebanon
Egypt
Numbers of Physicians Per 1,000 Population in Dubai and International Countries, 2015* Physicians/1,000 Population
3.5
3.3 2.8
3
2.6
2.6 2.4
2.5
2.4
2.3
2.3 2
2
2 1.5
1.5
0.9
1
0.8
0.5 0 UK
US
Kuwait
Dubai
Saudi Arabia
GCC Average
UAE
Oman
World Average
Jordan
Bahrain
Lebanon
Egypt
*As per the World Bank data, 2015 is mentioned as the common year for all the countries mentioned.
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HOSPITAL BED CAPACITY AND NUMBER OF BEDS As per DHA’s economic survey of 2010-2017, whilst the number of hospital beds increased to 4,074 in 2013 from 3,623 in 2010, the bed-topopulation ratio stood at 1.9 beds per 1,000 persons. A spike was witnessed in the number of beds and the bed-to-population ratio in 2015. By 2020, the number of hospital beds is expected to increase to 6,064 at a CAGR rate of 5%, while the ratio is expected to decline to 1.7 beds per 1,000 persons.
Hospital Bed Capacity and Number of Beds Per 1,000 Population in Dubai, 2010-2018
6,500
2.6
6,000
2.4 2.2
5,500 2.1
2
5,000 1.9
1.9
1.9
4,500
1.9 1.8
1.8
1.8 1.7
1.7
1,500
0.6
1,000
0.4
500
6,064
0.8
5,760
2,000
5,471
1
5,196
2,500
4,861
1.2
5,125
3,000
4,169
1.4
4,074
3,500
3,816
1.6
3,593
4,000
3,623
Number of Beds
1.7
2010
2011
2012
2013
2014
2015
2016
2017
2018F
2019F
2020F
0
0
Number of Beds
*Source: Dubai Statistics and Dubai Health Authority
12
0.2
Number of Beds/1,000 Population
Number of Beds/1,000 Population
1.9
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MEDICAL TOURISM AND INNOVATION According to DHA, Dubai attracted 337,011 international health tourists in 2018, of which 46% visited for dental treatments, followed by orthopedics (18%) and dermatology (10%). Ophthalmology, wellness, aesthetics and fertility treatments were also popular among tourists. In terms of nationalities, the majority of international patients (33%) came from Arab and GCC countries led by Kuwait, Saudi Arabia and Oman. Asia comprised 30% of the total, with visitors coming from India, Iran and Pakistan. The share of European tourists at 16% consisted mainly of UK, French and Italian citizens. Wellness tourism has seen a recent surge in popularity among Asians, followed by Arabs and European nationalities. Visitors from Africa were primarily interested in dental and orthopaedic treatments. The analysis by Dubai Chamber of Commerce and Industry revealed that medical tourism sales in the UAE increased 5.5% on a year-onyear basis to reach AED 12.1 billion in 2018 bolstered by government initiatives such as the Dubai Health Experience (DXH*), which is the first medical tourism portal in the region enabling tourists to book their entire medical holiday online. With these initiatives, Dubai’s aims to attract 500,000 medical tourists by 2021.
Medical Tourists Split by Nationality, 2018
21%
33%
Arab and GCC countries Asia European Others 16% Source: DHA *DXH is a single window smart application and website, which offers a range of comprehensive health packages and travel information including visa requirement as well as hotel and flight booking information.
30%
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UPCOMING PROJECTS Upcoming Healthcare Projects in Dubai
Barraquer Eye Hospital Number of Beds: 24 Expected Completion Date: 2021
Soliman Fakeeh Hospital Number of Beds: 300 Expected Completion Date: 2020
Saudi German Hospitals Group (SGHG) Number of Beds: 150 Expected Completion Date: 2020
Bin Haider Healthcare City Number of Beds: 250 Expected Completion Date: 2022
Source: MEED Projects
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ABU DHABI
M U S CAT
2205 Marina Plaza Dubai Marina P.O. Box 118624 Dubai United Arab Emirates
605 West Tower, Abu Dhabi Mall Tourist Club Area P.O. Box 126609 Abu Dhabi United Arab Emirates
Villa 836, Way 3012 Al Sarooj P.O. Box 3438 Muscat Sultanate of Oman
T: +971 4 453 9525
T: +971 2 448 4677
T: +968 24 694 150
Disclaimer: The information and analysis contained in this report is based on information from a variety of sources generally regarded to be reliable, and assumptions which are considered reasonable, and which was current at the time of undertaking market research, but no representation is made as to their accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue the indices at any time, for regulatory or other reasons. The report and analysis do not purport to represent a formal valuation of any property interest and must not be construed as such. Such analyses, including forward-looking statements are opinions and estimates only, and are based on a wide range of variables which may not be capable of being determined with accuracy. Variation in any one of these indicators can have a material impact on the analysis and we draw your attention to this. Cavendish Maxwell and Property Monitor do not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this report.