HEBANY GROUP – Key drivers of growth within the UAE healthcare sector

Fitch Solutions estimates that the UAE’s medical device market will reach Dh5.6 billion by 2025, with an annual compound growth rate (CAGR) of 4.4 percent from 2020-2025

The UAE is known to be the most economically developed and diversified markets in the Middle East with a strong healthcare infrastructure. The creation of a world-class healthcare sector is a top priority for the UAE and the sector has advanced and expanded significantly in recent years.

The UAE’s health expenditure reached a value of $15.5 billion (Dh57.0 billion) in 2019. 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 $16.2 billion (Dh59.4 billion) in 2020, a 4.2% yearly increase. The forecast is for spending is to rise to $20.5 billion (Dh75.3 billion) by 2024, which is a compound annual growth rate of 5.7%. A 10-year forecast to 2029 has health expenditure expected to rise to $29.2 billion (Dh107.1 billion).

Overall healthcare spending is expected to account for 5.1% of the country’s GDP by 2029, gradually increasing from 3.7% in 2019, according to Business Monitor International (BMI).

The 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 2020 federal budget, a total of Dh61 billion was approved for public spending, up only 1.2% from Dh60.3 billion from the 2019 budget. While this does not constitute total government expenditure in the UAE, which derives from overall spending at the respective Emirate 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, in part a result of slumping oil prices.

The government has also highlighted plans to build national capacities to fight future pandemics, which includes efforts to develop vaccines and medicines, digital immunization ID, and a new strategy focusing on supply chains. The Ministry of Health aims to develop the sector by focusing more on Health IT, including telemedicine and digital medicine.

Overview of the medical device market

Fitch Solutions, the content partners of Arab Health 2021, has estimated that the UAE’s medical device market will reach Dh5.6 billion by 2025, with an annual compound growth rate (CAGR) of 4.4 percent from 2020- 2025.

According to the Q2 2021 Fitch Solutions United Arab Emirates Medical Device report, the market will benefit from an overall strong economic performance over the next five years. Key market drivers, including population growth, changing epidemiology, a growing medical tourism industry, healthcare infrastructure developments, expanding health insurance, digital transformation, and new technologies, will underpin growth.

The medical device market includes any product used in healthcare for the diagnosis, prevention, monitoring or treatment of illness or handicap, other than drugs such as consumables, diagnostic imaging, dental products, orthopedic & prosthetic products, and patient aids.

Mabel HoyosGuijarro, Director, Hebany Group, gives us some more insight in the UAE medical technology/device market.

You have traversed a long way can you throw some light on this illustrious journey, how difficult the journey was and what challenges you faced?

We specialize in medical equipment and also are producers and distributors of syringes, laboratory tubes, disposables and surgical instruments. We reached this world of medicine especially through vaccines, starting with the distribution of the sinovac vaccine to Chile, our company in China for more than 10 years in the medical sector achieved this distribution.

We subsequently entered into a contract, joined forces and signed a prominent joint venture agreement with the private office of Her Royal Highness Sheikh Hend Al Qassemi to provide the Russian coronavirus vaccine, Sputnik, together with Aurugulf (royal Group) for distribution in Latin American countries.

You have been instrumental inyour fight against Covid19 can you throw some light on your association 
with HIPRA?

Argentina has set its sights on the Covid 19 vaccines produced in Europe. It was made clear in the course of the
visit that the President of the Government of Spain, Pedro Sánchez, has carried out to the South American country.
Sánchez proposed that Argentina acquire what will be the first Spanish vaccine against the coronavirus, manufactured by the pharmaceutical company Hipra. The vaccine in question, which is under development and does not yet have the corresponding authorization, is Hipra SARS-CoV-2, based on recombinant protein technology, designed to induce a “powerful neutralizing immune response”, as they leave out, and that it is kept at reasonable temperatures between 2-5 degrees centigrade.

Hipra can reach Argentina through a solvent channel that has already demonstrated in other countries in the region its agility when it comes to providing immunizers. This option opens the door for the Hipra vaccineto reach Argentina through a solvent channel that It has already demonstrated in other countries in the region its agility when it comes to providing immunizers and other medical supplies that are now essential to fight the coronavirus. The manager in Argentina of Hebany Group, Victoria Aravales, is the professional who today is in charge of coordinating the development of phase 3 in direct contact with the Medicines Regulatory Body in the South American country (ANMAT). Eduardo Holgado, who from Spain is in charge of the relations between Hipra and Hebany Group, also plays a determining role when it comes to achieving the results sought.

The President of the Government of Spain, before starting his trip to Argentina, visited the facilities of the Hipra vaccine project in Catalonia and defined it as ‘one of the most hopeful’.

The Hipra project has the support of the Spanish Agency for Medicines and Health Products (AEMPS), as well as the Ministries of Health, Industry and Science and Innovation of Spain. At the moment, Hipra is also carrying out a line of research in collaboration with the Hospital Clínic de Barcelona for the development of a vaccine against Covid-19 based on the mRNA of the virus.

Describe your active role in the development of phase 3 of Hipra

Hebany Group, which will actively participate in the development of phase 3 of Hipra, is very committed to finding solutions for the crisis caused by the pandemic from its offices both in the East and in the West, from where it provides medical equipment and sanitary material to governments, entities and groups. In fact, the Spanish company had distributed 18 million doses of the Sinovac vaccine against Covid-19 at the end of January, managed from its center in Dubai.

We are evaluating the possibility of presenting it ready to be dispensed in individual pre-filled syringes, so that special vaccination centers would not be necessary, and it would speed up mass vaccinations especially in countries with difficult access.

You have been known for your CSR initiatives can you tell us about your foundation in India?

We are making a foundation in Indian state of Kerala. We will be help in education of these children and
also help them in getting vaccinated. The profit from the sale of our latex gloves will go towards this