Dubai // Boutique hospitals - complete with chauffeur-driven transfers and private suites - are aiming to make the Emirates a major destination for luxury health care.
Over the past decade, these private facilities have begun competing with other popular medical destinations such as Singapore, Malaysia and Thailand.
Nestled away from the hustle and bustle of Dubai, the 20-bed Jebel Ali Hospital, part of Lifeline Healthcare, has taken customer care to another level. Opened in 2005, the first boutique hospital already has plans to double its capacity.
"People expect more and more, and bigger and better, all the time," said Dr Belal Hashim, the hospital's marketing officer. "That is what we try and cater for here.
"It is about offering the best possible customer service to people, as well as the best expertise. Dubai is all about being the biggest and the best."
Dr Hashim said the hospital had taken full advantage of the health care market and offered promotional packages on comprehensive check-ups and two-for-one deals on plastic surgery procedures.
More and more people are seeking health care abroad, often to beat waiting lists or access cheaper private care than they could in their own country, but also for treatments not available at home, such as plastic surgery.
In November, IIR Middle East will host Dubai's first Healthcare Travel exhibition and congress, a two-day event that is expected to attract more than 500 travel agents, healthcare professionals and insurance companies.
Sietske Meerloo, marketing manager of IIR Middle East, said it was the first of event of its kind where different stakeholders could meet to discuss putting Dubai at the forefront of the medical tourism market.
"Globally, the UAE is behind places such as Asia," she said. "Singapore, for example, is far ahead of everyone else.
"But if anywhere can do it, Dubai can. I think it is great that hospitals and clinics are reinventing themselves and trying to improve. It is fantastic that they are going the extra mile.
"Dubai has already done a great job promoting itself in other areas. If you were to ask someone from Europe to name a luxury holiday, Dubai would be in the top 10."
Ms Meerloo said more hospitals would be following in Jebel Ali Hospital's footsteps, and that luxury and economy packages combining medical treatment and top hotels would become the norm as the market continued to expand.
"It is a very good thing for Dubai," she added.
The Jebel Ali Hospital offers corporate packages, promotions and a chauffeur service, making the facility seem more like a five-star hotel than a sterile environment featuring operating theatres and waiting rooms.
Inside the hospital pieces of art adorn the walls. There is not a medical chart or health promotion poster in sight.
Dark marble and frosted glass replace the usual sterile walls and doors. There are water fountains scattered around the building.
"Ten years ago you would not have seen anything like this," said Dr Prem Jagyasi, Lifeline Healthcare's group director.
He added: "Why do we run a boutique hospital? We are surrounded by an affluent society and they want a good service from the moment they walk through the door.
"Boutique means providing exceptional care and quality of medical services in a striking relaxing ambience. The levels of expectation here are much higher than elsewhere. Dubai offers more than basic hospitality."
Jebel Ali Hospital looks to be the first of many such facilities, as big names such as Harvard Medical School and Great Ormond Street Hospital have all recently been attracted to the 500-acre free-zone complex that is Dubai Healthcare City (DHCC).
"There is a lot happening here at the moment," said Dr Hashim. "Everyone wants to boost their services."
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Company Profile
Founder: Omar Onsi
Launched: 2018
Employees: 35
Financing stage: Seed round ($12 million)
Investors: B&Y, Phoenician Funds, M1 Group, Shorooq Partners