Michael Latham, associate director, Lexington, explains why feels the future of medtech innovation depends on UK-Arab trade relationships.
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Dubai will host Arab Health 2023
From Monday, more than 4,000 companies from 163 countries will meet at the 2023 Arab Health Expo in Dubai. In the 50 years since the Expo’s inception, the UK’s delegation has grown and strengthened its offer, reflecting the UK’s ever-deeper ties with the UAE and wider Gulf Cooperation Council (GCC) of sovereign nations in the region.
This year is no different. The Association of British HealthTech Industry (ABHI’s) UK Pavilion, held in conjunction with the Department for International Trade, will host leading UK healthtech companies, hospitals and service providers. The British delegation arrives in Dubai at a decisive moment in trade relations between the UK and the GCC. With Free Trade Agreement talks entering their third round in the coming months, there is growing recognition of the "substantial economic opportunity" a strengthening of ties could bring.
A wide-ranging deal with a bloc equivalent to our seventh largest trading partner could not come at a more critical time for the UK. The need for good news stories which can point to shoots of economic growth in the frozen January ground has never been more pressing. Amidst the daily headlines of economic stagnation, impending recession and double-digit inflation, the UK’s health service finds itself beset by protracted strike action, swelling waiting lists and never-ending budgetary demands. These headlines have not escaped the notice of international news editors in the Gulf.
Such a deal would bring significant benefit to the GCC region, too. The UK remains pre-eminent for its scientific and translational base, with opportunities for investment arguably under-priced and the country now on a more politically stable footing compared to the tumult of the last five years. The GCC region, which experienced 6.9% GDP growth in 2022 supported by higher hydrocarbon prices, is leading the world in the creation of domestic and international investment opportunities to support their growing economies. Rising life expectancy and shortages in the clinical workforce, are creating healthcare challenges across the region; how can the UK’s life science industry lend its expertise, experience and innovation for the benefit of both parties?
Events such as Arab Health provide an excellent opportunity for our most innovative companies to drive investment between the GCC and the UK. Whether in remote monitoring, telemedicine or data analytics, the Gulf needs digital health solutions in which the UK has world-leading expertise. Similarly, our reputation for world-leading medical research, buoyed by the successful vaccination development and roll-out, can also shape a future of healthcare partnerships beyond medical technology alone. Saudi Arabia’s recent announcement of plans to establish a Biobank, for example, shows where the UK’s world-leading position can lend a hand to capacity and capability in the region.
Such investment and collaboration rely on a clear, stable regulatory environment. In the years since the 2016 referendum, many have questioned the regulatory route the UK will pursue for life sciences. Providing over a quarter of a million jobs across the country, the sector’s importance should not be underestimated. However, significant concerns remain over the lack of ambition in setting a clear regulatory path post-Brexit, which may damage future prospects for collaboration and investment with the Gulf.
These concerns are confirmed in a recent ABHI survey, which demonstrated considerable pessimism within the healthtech industry over the UK's future as a viable global player. 75% of respondents believed the UK risked being deprioritised for international investment, while only 17% believed that the UK was acting in a sufficiently ambitious manner as it attempts to build a sovereign regulatory system post-Brexit. A new approach to regulation which leads in the development of a trusted and secure data community between patients, clinicians, the NHS and life sciences companies could do much to reinforce the UK's historic reputation as a world-leader in health innovation and provide real evidence of our intention to continue that leadership in collaboration with forward-thinking global partners.
2023 brings much to be optimistic about. After a tumultuous few years – and indeed few months – the UK’s position post-Brexit appears to be consolidating and the political situation slowly stabilising. When the UK’s delegation returns from the UAE, UK and Middle Eastern businesses hoping to maximise the opportunities as the prospects of a comprehensive FTA will bring will need to act fast to help shape the agenda in the year ahead.
Lexington will be hosting a panel discussion on Driving future healthcare partnerships between the Gulf and UK at the UK Healthcare Pavilion on Wednesday 1st February from 13.00-13.30.
