pharmaceutical & medical equipment - dubai exports · 2018-05-03 · market will touch 10 bil...

dedc.gov.ae

Pharmaceutical & Medical Equipment

Medical Devices Q4 2017

Dr. Faisal El Amir

Executive Summary

2 dedc.gov.ae20/11/2017

• The Pharmaceuticals and Medical Equipment sector is one of six target sectors of DIS

• Strengths and opportunities follow on from a large domestic and regional markets and a high Risk/Reward Index far above regional average by BMI

• UAE Ranks first in the region in RRI of medical devices market• Domestic market alone will tune to about 5 Bil AED in 2021,while MENA

market will touch 10 Bil US$ by 2021 growing at around 7% p.a. for 2016-2021• There are good opportunities both for export and re-export from Dubai• Current exports of medical devices from Dubai though remained small but have

stabilized over the last two years• Re‐exports from Dubai have exhibited large growth since 2013 but fell in 2016,following

the decline in growth of overall exports in 2016• Exports comprised mostly of instruments and medical appliances and minor exports of

consumables like gauze and bandages • Good potential markets exist in Africa and ME for medical consumables. Top

potential markets are KSA(88 Mil US$),South Africa (43 Mil US$)• Medical gloves have also excellent market in USA with zero tariff for export

from UAE ,the annual potential for export to USA for medical gloves is 2.5 Mil US$

UAE Medical Devices sector strengths and opportunities

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Opportunities follow-on from:• UAE is one of the largest medical device market in the region• high medical expenditure for medical devices per capita• strong GDP growth• The hosting of Expo 2020• The expansion of the private healthcare system , • the launch of the medical tourism initiative ,• The development of IoT based healthcare systems, • Medical device market growth higher than GDP growth, • An increasing diagnostic imaging imports from Japan • Regional headquarters established by multinationals

UAE Medical Devices sector strengths and opportunities

4 dedc.gov.ae20/11/2017

• The Pharmaceuticals and Medical Equipment sector is one of six target sectors of DIS

• .The dental and orthopedics & prosthetics manufacturing will benefit from new SME technologies such as 3D printing which is being contemplated for other sectors in Dubai e.g. gold manufacturing

Medical Devices Reward Index

5 dedc.gov.ae20/11/2017Source : BMI

44.148.3

45.8

35.9

48.7

41

0

10

20

30

40

50

60

Industry Rewards Country Rewards Rewards weighted avearge

UAE Regional Avearge

Medical Devices Risk/Reward Index

6 dedc.gov.ae20/11/2017Source: BMI

50.9

38.5

50

0

10

20

30

40

50

60

UAE RRI Regional RRI Global RRI

UAE is above the world average and far above the regional average in RRI

UAE market size

7 dedc.gov.ae20/11/2017Source: BMII

The market will grow from AED 3.5 bn 2016 to AED 4.9bn in 2021 at CAGR of 6.9%

Top Medical Devices in Demand in UAE market

8 dedc.gov.ae20/11/2017Source: BMII

7

6.6

6.4

6.3

ORTHOPAEDICS &PROSTHETICS

PATIENT AIDS DENTAL PRODUCTS CONSUMABLES

GRO

WTH

2016‐2021

% AVE

RAGE Y‐O‐Y

Four product categories show high growth in domestic demand above6% Y‐O‐Y average for 2016‐2021.However Consumables seem a good candidate for investment in the short and medium terms

UAE market projection by top productsDental


196

238253 259

292309

332352

376397

423

14.4

21.5

6.2

2.5

12.7

5.9

7.6

66.8

5.7

8.1

0

5

10

15

20

25

0

50

100

150

200

250

300

350

400

450

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Y‐O‐Y growth %

Sales in UAE

Million AE

D

Dental Market is sizable approaching 423 Mil AED by 2021 but growing at a lesser rate than Consumables and Orthopedics & Prosthetics, though growth increase to 8.1% in 2021

UAE market projection by top productsConsumables


5356

5860

5553

5760

6569

74

‐10

‐5

0

5

10

15

20

25

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Y‐O‐Y growth %

Sales in UA

E Million*

10 AED

Consumables include bandages,dressings,suturing materials ,syringes,needles,catheters,gloves etc.These are the most promising products for domestic manufacturing in the short to medium term. Consumables market will touch 740 Mil AED by 2021 growing from 570 Mil AED in 2017 at around 7% Y‐O‐Y

UAE market projection by top productsOrthopedics & Prosthetics


144

182 186

251274

236

262

287

314

340

368

‐20

‐10

0

10

20

30

40

0

50

100

150

200

250

300

350

400

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Y‐O‐Y growth %

Sales in UA

E Million AE

D

Orthopedics & Prosthetics is one of the highest growing product category ,growth approaching about 9% Y‐O‐Y by 2021.It is a high potential sector for manufacturing

UAE market projection by top productsPatient Aids


212 204

252

294 305 302327

352377

404429

‐10

‐5

0

5

10

15

20

25

30

0

50

100

150

200

250

300

350

400

450

500

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Y‐O‐Y growth %

Sales M

illion AE

D

Patient Aids market size is approximately the same as dental market approaching 429 Mil AED by 2021 but growing at lesser rate

Dubai Foreign Trade in Medical DevicesExport & Re-export Trend


50 28 59 52 52

771

951

1507

1641

1369

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2012 2013 2014 2015 2016

Million AE

D

Chart Title

Exports Re‐exportsExports of medical devices though remained small but have stabilized over the last two yearsRe‐exports have exhibited large growth since 2013 but fell in 2016,following decline in growth of overall exports in 2016

Dubai Foreign Trade in Medical DevicesExport Composition 2016

14 dedc.gov.ae20/11/2017

3,064,848

48,321,289

159,406

0 20,000,000 40,000,000 60,000,000

WADDING, GAUZE, BANDAGES & SIMILAR ARTICLES

INSTRUMENTS AND APPLIANCES USED IN MEDICAL, SURGICAL, DENTAL ..

MECHANO‐THERAPY APPLIANCES; MASSAGE APPARATUS

Value in AED

Exports comprise mostly of instruments and medical appliances and minor exports of consumables like gauze and bandagesSource: Dubai Customs

Dubai Foreign Trade in Medical DevicesExport Composition 2016

15 dedc.gov.ae20/11/2017

73,439,022

842,310,442

28,787,106

22,928,937

163,544,531

237,761,690

0 400,000,000 800,000,000

WADDING, GAUZE, BANDAGES & SIMILAR ARTICLES

INSTRUMENTS AND APPLIANCES USED IN MEDICAL, SURGICAL, DENTAL ..

MECHANO‐THERAPY APPLIANCES; MASSAGE APPARATUS

OTHER BREATHING APPLIANCES AND GAS MASKS

ORTHOPAEDIC APPLIANCES, INCLUDING CRUTCHES, SURGICAL BELTS AND TRUSSES;

SPLINTS ….

APPARATUS BASED ON THE USE OF X‐RAYS OR OF ALPHA, BETA OR GAMMA RADIATIONS..

Value in AED

Re‐exports cover a wider spectrum of products than exports ,the largest re‐exports are in instruments ,X‐ray related apparatus and orthopedic appliances …

Source: Dubai Customs

Dubai Foreign Trade in Medical DevicesTop export markets

16 dedc.gov.ae20/11/2017

11

6

4

4

3

2

2

2

2

2

0 2 4 6 8 10 12

JEBEL ALI F.Z.

PAKISTAN

IRAQ

LEBANON

GUATEMALA

BELGIUM

YEMEN

SUDAN

INDIA

BOLIVIA

Million AED

Top export destinations for Dubai are mostly neighboring markets


Dubai Foreign Trade in Medical DevicesTop re-export markets 2016

17 dedc.gov.ae20/11/2017

254

163

163

91

68

59

53

48

47

39

0 50 100 150 200 250 300

SAUDI ARABIA

IRAN

KUWAIT

PAKISTAN

AFGHANISTAN

QATAR

LIBYA

IRAQ

JORDAN

LEBANON

Million AED

Re‐export markets are almost all in ME ,top markets are KSA ,Iran , Kuwait, and Pakistan .


MENA Region OpportunitiesMarket size of Medical Devices is on increase and projected to grow at about 7.2% p.a. average hence offers immense opportunities both for export and re-export from Dubai


7.5 7.68.2

8.99.5

10.1

‐1.6

1.7 7.6 7.8 7 6.7

2016 2017 2018 2019 2020 2021‐2

0

2

4

6

8

10

12

Sales B

ilon US$

MENA Region Medical Devices Market Size

MENA Region OpportunitiesConsumables e.g. Like Wadding, gauze, bandages, medical gloves & similar articles offer the most likely feasible investment for both exporters and re-exporters from Dubai to MENAMedical gloves have also excellent market in USA with zero tariff ,the annual potential for export to USA for medical gloves is 2.5 Mil US$


0

1

2

3

4

Consumables Diagnostic Imaging Dental Orthopedic& Pros Patient Aids Other Medical Devices

Sales B

illion US$

2016 2021

Diagnostic Imaging and Consumables are outperforming .However UAE entrepreneurs may for the short to medium term concentrate on consumables e.g. Like Wadding, gauze, bandages, medical gloves & similar articles, in the longer term investment may look into other sector investment in partnership with technology suppliers e.g. Diagnostic Imaging, Orthopedics& Prosthetics ,Patient Aids and Dental

Top potential markets in Africa and ME for medical consumables

20 dedc.gov.ae20/11/2017

Source ITC Trade Map

Algeria 12 Mil US$

Libya 12 Mil US$

South Africa 43 Mil US$

Kenya 9 Mil US$

KSA 88 Mil US$

Turkey 20 Mil US$

pharmaceutical & medical equipment - dubai exports · 2018-05-03 · market will touch 10 bil...

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