بسم الله الرحمن الرحيم – Opportunities for investments in Healthcare Education

1. بسم الله الرحمن الرحيم – • Opportunities for investments in Healthcare Education • on the Saudi Arabian Market • 8th German – Arab Business Forum 2005 • June 15th– 17th 2005 , Berlin • Prof. Dr. Dr. h.c. Fried Oelschlegel • Saudi German Hospitals Group, Jeddah, Kingdom of Saudi Arabia

2. SGH Group – Vision and Mission • ومن احياها فكأنما احيا الناس جميعا ” المائده • Our Guiding Philosophy had always been the following these verse from The Holy Quran : • “And if anyone saved a life, it would be as if he saved • the life of all mankind “ Al-Maidah (32) • Our Corporate vision is • to design, finance, construct & operate 30 world class hospitals and create 50.000 jobs by the year 2015 • to be the dominant player in the private medical education by establishing 5 Medical Colleges by the year 2010 • Our mission is • To be the leader in the Middle East and Africa and to deliver reliable, quality medical care to everybody

3. Investments in Medical Education – Business with long term effects and huge opportunities for cooperation between Kingdom of Saudi Arabia and Germany Five Batterjee Medical Colleges ( BMC) with each 4000 students till 2010; Insha Allah !

4. Medical Manpower in Saudi Arabia – Current Situation • Only less than 17% of the doctors in Saudi Arabia are Saudis. • Over 80% of health professionals are Expatriates. • The Average no. of people per physician : • Saudi Arabia: 588 USA: 358 UAE: Germany: 285 • ( Source: WHO 2003 ) Currently, there is an acute shortfall of qualified medical personnel. This gap is met through the import of skilled medical personnel from abroad, at a cost of SAR 15 billion. With the increasing efforts for Saudisation, the coming years will see an even heavier demand for skilled Saudi medical professionals. The number of health physicians, nursing staff, and Allied Health personnel in the Kingdom has grown at a compounded annual growth rate of .9%, 1.9%, and 6%, respectively, between the years 1995 and 1999. According to this growth rate, combined with the current population levels, crude death and birth rates, and life expectancy rates, the ratio of doctors to patients will not reach the International standard of 1/358, even by the year 2050. ( Source: KPMG )

5. Medical Education in Saudi Arabia: Current Situation • 13 Government Colleges of Medicine ( 7 colleges for Boys and 6 Colleges for Girls) The rejection rate of applicants in Medicine in some public universities exceed 90%. • In 1999 ,a royal decree authorized the establishment of private colleges parallel to government colleges and educational institutions because the inadequate capacity of Government Medical Colleges in Saudi Arabia. • Many students are forced to travel abroad for Medical Education at very high costs. Number of Saudi students studying abroad was 7,901 in the year 2000. • 57% in USA, 13% in UK, 7%in Canada • Boys go abroad for education, Girls are forced to look for a faculty that is locally available and not interested in. • Medical manpower requirement can not be met by Government Medical Colleges alone. • “Private Sector participation is the only solution”

6. Vision & Mission of Batterjee Medical Colleges (BMC) • VISION: • design, finance, construct, and operate 5 medical colleges to the highest international standards by year the 2015, thus providing the region with well-trained qualified healthcare professionals to serve the increasing demand for quality healthcare. • MISSION: • To be regional leader in providing educational and vocational training opportunities of highest quality in medical, nursing and allied health sciences that are comparable to international standards. Through the assistance of highly qualified faculty, the use of advanced technology and the guidance of community leaders, our graduates will be able to professionally compete locally and world-wide and be effective contributors towards the advancement of their societies.

7. Aims of the Batterjee Colleges • To be a forerunner in Medical and Dental care, Pharmaceutical, health education and promotion services. • To uphold and fulfill the vision and mission of the Ministry of Higher Education and other national and international partners. • To be a forerunner in undergraduate program, post-graduate training that cuts across institutional and national boundaries. • To be an international center of excellence in medical education and research that: Utilizes the faculty core competencies and capabilities. and Links its undergraduate program to the evolving post- graduate training and world-wide vocational training. •   To encourage its faculty and staff to maximize their performance by utilizing their core competencies and capabilities.

8. BMC - seven competitive advantages • First and the largest private Medical University in Saudi Arabia that promoted by the leading healthcare provider in the Middle East, SGH Group. • Good Location enabling future expansion and allowing for a self-enclosed campus. The College will consist of two main campuses, each with a full range of educational, residential, recreational facilities, one for boys and the other for girls. • Contemplated Public-Private-Partnership’s with leading International Universities in Germany, in Europe and other continents • Leverage provided by existing cooperation between SGH Group and five German universities with regards to ‘senior visiting professor exchange program’ • Exceeding national standards of accreditation /licensing . • Excellent job placement capabilities into the Saudi German Hospitals network. • Directly tied to an operative hospital for teaching and interning with a full equipment and TQM system as a clinical school.

9. Implementation of German Quality Standards ( 1 ) • The SGH Group started 1989 with an „ International Visiting Professor Program“ At present, almost 130 professors – and increasing – from famous universities in Germany ( 79 ), Egypt (15), Austria (5), Netherlands (2), USA (5), U.K. (8), Belgium (2), Italy (2), France (4), Switzerland (2), Japan (1),  Turkey (2) and Canada (3), visit us periodically to see patients, perform operations, conduct lectures, workshops, participate in scientific symposia, etc… • 25 German professors have applied for the admission to the program alone within the last three months. • The curricula for Medicine and Nursing for the colleges were developed by famous German Universities and are based on the new practice focused „ reform study programs“ – the highest advanced methods in modern medical education

10. Implementation of German Quality Standards ( 2 ) • We are here in Germany also to continue our negotiations to erect a non-profit foundation for education together with a very famous German Faculty of Medicine to use such organization for knowledge and experience transfer from Germany to Saudi Arabia for a mutual benefit, Insha Allah ! • This foundation will implement in our BMC colleges a system approved in German universities for quality assurance and control in medical Education beside the international ISO 9001/ 9002 standards and international accreditions. Great benefit to Saudi Arabian and Arab medical students as it will offer them the high quality and calibre of medical education and research of famous German Universities in the spirit of science & culture of an unified Europe : at lower cost and at home !!!

11. Benefit for the Germans ? • Participation in the competition for construction and equipping of the colleges – each of them is an 200 Millionen SR Investment; all together 1 Billion. And the BMC colleges didn‘t cover all demands in health care education facilities in Saudi Arabia. The situation in other Arab countries is quit similar. • Development of knowledge and experience transfer to a new and high profitable business field for German Universities by Zero-Financial Investment ( but fare away from false clichees – not all Arabs have an oil-source in their garden ; We have also to calculate our return of invest – because it‘s an international very competetive market ) • To invest directly – together with us in Joint Venture Companies for medical education and share with us longstanding and satisfying profit marges on a fast growing market.

12. “ soft “ benefits for German Healthcare Institutions for Medical Education to cooperate with BMC - Colleges • Opportunity to cooperate with Medical Colleges which have backing of the leading healthcare provider in Middle East & Africa with proven track record – the SGH Group. • Medical Education is having a lot of scope in future. • Investment with regular return with social cause in mind. • Investment in Medical Education is direct Investment in human resources development of a fast growing nation. • Encouraging exchange of expertise nationally, regionally and internationally by a close network to the leading Centre of Medical Excellence in Treatment and Education in the world. • Participation in the revolution of IT , e-learning methodology an medical research with new business opportunities . • Participation in solving of a major problem in the Arab region - Unemployment. Education and training is helping to improve the social and economic standards as the most important prerequisite for political stability and peace in this region.

13. We will start September 2006, Insha Allah ! You are invited to become a colleague, a supporter or a partner of the Batterjee Medical Colleges A dessert flower for your attention THANK YOU !