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Business

Leading the Arabic video revolution

by Joe Dyke May 23, 2013
written by Joe Dyke

In the coming months, Executive is seeking to highlight exciting entrepreneurs from Lebanon and across the Arab world. Starting today, every Thursday we will meet one of the new generation of exciting talents to learn how they are seeking to change the Middle East.

 

Company: EKeif

Country: Jordan

Industry: Online media

Founder: Sima Najjar

Age: 29

Established in: December 2011

Number of employees: 3

Revenues last year: $11,000, with growth rate doubling

Capital raised: Currently finalizing a deal to raise $200,000

 

Sima Najjar is fluent in English, but always preferred to learn in her native Arabic. But a couple of years ago, she was searching for good self-help guides online and came up empty, sparking her curiousity.

Related article: The Top 20 Lebanese Entrepreneurs

“I always liked the EHow videos and answers but I didn’t find them in Arabic. So I found a gap in the market and thought about turning it into a business,” she says. With the help of the Amman-based accelerator Oasis 500, the result is EKeif (literally EHow in Arabic).

Launched in December 2011, the company provides simple Arabic language videos aimed mostly at women. Among the most popular are tips on styling hair, recipes and how to make a homemade facemask.

At just 29, Najjar is one of Jordan's most exciting entrepreneurs

EKeif has seen rapid growth and its videos now get over 1 million views a month. The company is in the process of confirming a major capitalization deal, worth around $200,000, which will completely transform the site. Currently they produce around 40 new videos a month, but they hope to raise that number to 1,000, potentially putting them among the leading companies making Arabic-language content online.

Najjar says she will seek to learn from the lessons of the original EHow. After being bought out the company produced a lot of content rapidly and faced criticism that quality suffered, eventually leading to it pushed down Google’s search engine. Najjar says she is aware of the danger and will maintain stringent quality control measures, but with such rapid growth planned the dangers are clear.

In terms of revenues, the site makes money not from ad sales, as the original EHow did, but through selling space in the videos to specific companies. “We are going to make money through product placements and branded entertainment. We also have sponsored videos, a Youtube partnership and an exclusive contract with Mobili in Saudi for six months to have our videos downloaded through their platform.”

Najjar admits that revenues so far have been miniscule – just $11,000 last year – but says they have focused on the product in the short-term in order to attract major investors. Incomings, she says, are likely to double this year and grow exponentially in the coming ones.

Video killed the article?

While the idea for EKeif may not be original, the company benefits from being in an underdeveloped market. Just one percent of content online is estimated to be in Arabic, while Arab-speaking people make up closer to five percent of the global population.

More importantly, Najjar says, Arabic content online seems to be largely skipping text articles and going straight to video. YouTube have predicted that in the next decade as much as 90 percent of online content could be video and Najjar says this trend is particularly prevalent in Arabic content, explaining her decision to focus heavily on the medium.

There are also challenges, Najjar says, in gaining loyalty as Arabs tend to get their news via social media rather than going to specific sites. “The Arabs are very social [online], they go to Facebook or Youtube – they don’t go to the Internet to surf the net generally. This is the customer behavior of the Arabs and this is what we used to target them through our videos.”

While they may be based in Jordan, the company has identified Egypt and Saudi Arabia as the real growth markets for Arabic content, with around 70 percent of their hits coming from the latter.

It is clear that the market is opening up and Arabic-language content is underserved. With the right decisions at this critical time, the company could become a market leader, a target Najjar has set herself. “We want to be the Arabic EHow and the ultimate source of how to videos online. If you have any questions you will go to EKeif and find it there.”

May 23, 2013 0 comments
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Economics & PolicyHealthcare in Lebanon

Dr. Roger Sfeir

by Zak Brophy May 22, 2013
written by Zak Brophy

Dr. Roger Sfeir is one of Lebanon’s leading cardiovascular surgeons and has been a key advisor on national healthcare reforms. International bodies such as the World Bank and United Nations Development Program have sought his expertise for a number of studies. Executive sat with him to discuss recent developments in the sector and the problems that continue to beset healthcare in the country.

Is there an over-reliance on private sector financing for healthcare in Lebanon?

Provision of healthcare is nearly 90 percent private and the expenditures mainly go to these centers, so yes, it is skewed to the private sector.

What are the implications of that?

Well, we need to look at the financing, from where the money comes. Before 1998, the public hospitals were incredibly inefficient so in that year a law was passed called the Law of Autonomy of Public Hospitals, where they changed the legal structure of these hospitals.

So instead of being directly managed by the Ministry of Public Health (MoPH), each hospital had a board and a general manager under the supervision of the ministry, but it was supposed to operate like a private hospital, with its own budget. Its income would come from billing the government for the patients it serves.

Has the law been successful?

Not really.

Why not?

When this law was written, we were aware that as long as the manager and the board were appointed by the politicians then the same problems would occur again. As the law is written, the boards and managers are appointed by the MoPH, so they are not free of political interference. I believe now around 15 to 20 percent of the overall healthcare budget goes to public hospitals whereas it was around 10 percent back then.

Within healthcare in Lebanon, are there sufficient quality control measures?

Before the major effort to restructure the healthcare sector back in 1998, there wasn’t anything called quality control by the government in the hospitals. We wanted  something like the joint commission in the United States, but we ended up doing what is called the accreditation of hospitals, whereby a committee from the MoPH comes and checks the hospital including everything from the infrastructure to the nursing to the management.

How rigorous is the process?

It is working, but not very well. This is because of how it is being implemented. The problem is that the hospitals are audited by one of four companies selected by the ministry. [It is a situation] where the companies may give wrong results.

How?

[Laughs.] Well, if you know or have relations with the people who own the [ratings] company, then they can give better grades. With these contacts, they can help the hospital get an accreditation when maybe they shouldn’t. The way the system is built is not foolproof to prevent abuse.

How would you assess the balance of primary to secondary and tertiary healthcare spending?

There is too little [spending] on primary healthcare and preventative medicine. There has been an effort by the MoPH and [its] director general to improve the primary healthcare centers and put more effort into improving preventative medicine, because the dollar you put there can save you 10 further down the line. Private institutions can’t do this because it is not profitable.

How coherent and comprehensive is the data available for the sector?

There was lot of money put into a 1998 study for restructuring the sector. Part of this was to collect data in what is called the national health account, and it gave some alarming findings. For example, it found that total healthcare expenditure was 12.3 percent of gross domestic product, which was second only to the US. [Between] 2004 and 2005, it found it went down to around 9 percent. But we really have to take these figures with a large pinch of salt. There is [a possibility] for errors or even gross errors in the collection of this data.

How efficient is the pooling of resources and data within the sector?

Healthcare information is very important for the steward of the system, and this should be the MoPH. Now the ministry is a lot of things. It is the steward, it drafts the laws, implements the laws, treats patients and pays for the patients. All these should be split and divided. There should be checks and balances.

These proposals have been put forward many times but have not been implemented. Why not?

The ministry should be the steward for the system, put down the regulations and have a center for the collection of data. The one that owns the hospitals should be another entity, and the one that collects and pays the money should be the national healthcare fund. The government has not been able to implement these policies even though they were approved by the Council of Ministers [Lebanon’s Cabinet] way back in 1999.

Why not?

There is no political will. If you want to take from the National Social Security Fund (NSSF) the power of paying for the hospitals, then they will not be happy, and the same for the MoPH. If you want to create a national health fund, this will take from the MoPH and the NSSF. Neither of them will allow it.

How would you assess the efficacy and equity of the mix of payments from the public health ministry, insurers, NSSF and professional associations?

It is both inefficient and inequitable. The most inefficient way to pay for healthcare is out of pocket, and yet it amounts to around 60 percent of all healthcare spend here.  This also leads to inequality. If you are poor and don’t have insurance, you can’t afford to pay out of pocket so you go without. We need more prepaid systems.

The NSSF is in a bad state of affairs. What could be done to make it more sustainable?

The sickness fund portion of the NSSF used to have more money in the bank, but year after year you see the money available going down because the losses are more and more. It has passed zero and it is now losing billions of lira every year. Another set fund was created a few years ago for those people that are not insured. Who chose to join? The elderly who have no social security ­— and they are very sick, so within a couple of years the fund ran out of money. The government pays into the regular fund, but they have not been paying their share because they say there is a lot of theft and abuse of the system. The NSSF is going to remain in deficit unless there is a major change made, which I don’t see happening in the coming years.

What is the state of care for the elderly and palliative care in Lebanon?

I think one of the worst aspects of our healthcare system is that there is no proper adequate care for our elderly, either in terms of healthcare or nursing homes. Nothing. There are hospitals that have long-term contracts with the government for the elderly, but they are really paid minimal amounts per day. Not enough to pay the electricity. This is [a failure] of the system. Once you stop working at 65, your insurance stops and your health coverage stops and you get paid your social security, which [runs out] in one year. After that you have no medical coverage, so many of the elderly are left uncovered.

May 22, 2013 0 comments
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Economics & Policy

Towards breaking point

by Peter Speetjens May 22, 2013
written by Peter Speetjens

“Late March a Syrian mother of eight stood at my door, asking for help, but I had nothing left to give,” said Elian Nasrallah, a priest in charge of coordinating aid efforts in Qaa – a Christian village in Lebanon’s northern Bekaa Valley. Qaa has become host to some 10,000 mainly Sunni refugees from Syria, many of whom cross the border with nothing but their clothes on. Yet, in order to get aid they must register with the United Nations High Commissioner for Refugees (UNHCR), with the nearest offices located 90 kilometers away in Zahle. Without this, Nasrallah and others are struggling to support their guests.

“I asked her to come back after a few days, as I went looking for a sponsor,” he said. “She returned after a week with seven children. It was still very cold in that time – as they had to sleep out in the open, her two-year-old son had died.”

Related article: Mapping the Syrian refugee exodus

Most days at the UNHCR headquarters in south Beirut, at five o’clock there still are some 200 Syrian refugees waiting outside. A sea of plastic chairs under blue parasols aims to ease the wait, while a handful of street vendors sell water and ka’ak. Each time the man in uniform calls out a number, a family or couple shuffles towards the building’s heavily guarded entrance.

To receive emergency aid, a refugee must be registered – a procedure that takes an average of 31 days. “That is long,” admitted UNHCR Representative Ninette Kelley. “But the numbers we face are just overwhelming. In April alone we registered 90,000 refugees. When I first started in Beirut some three and a half years ago, we did a few hundred cases a month.”

Since the Syrian conflict began, the UN has dropped many of the restrictions on Syrians registering, but the process is still laborious as it takes time to register each refugee and determine his or her specific needs.

Currently, there are an estimated 4 million internally displaced people within Syria and some 1.6 million refugees in neighboring countries. Some 460,000 are registered, or await registration, at the UNHCR in Lebanon. The influx has accelerated in recent months – in April last year there were only 13,000 registered refugees in Lebanon. “Some 60 to 70 percent of the refugees arrived in the last four months,” said Kelly. “If this continues at this rate, Lebanon will have a million of refugees by the end of the year.”

According to the International Crisis Group, however, there may already be a million Syrians in Lebanon as many do not register, either because they are working or are staying with friends or family.

Paying up

While the number of refugees is on the increase, the international community has so far hardly paid its dues. In January, the UNHCR called for a regional budget of $1.6 billion in 2013 to assist Syrian refugees. “Some $267m was meant for Lebanon,” said Kelley. “However, that figure was based on a total of 300,000 refugees. Today, we’ve already 50 percent more refugees, while we received but a third of the budget.”

By April 11, the organization had received only $163 million. Major donations stemmed from the United States ($56m), the European Union ($45m), Japan ($22m), and a core of mainly European countries. With the exception of Kuwait, which has already committed $2m and recently pledged another $300m, most Arab countries have so far kept their wallets tightly sealed.

Naturally, this has major consequences for the quality of services provided. “We have no choice but to prioritize,” said Kelley. “For example, we now focus on primary health care. For complex medical interventions we simply do not have the money. Also, the Lebanese government recently pleaded for $5 million to support schools, which are overcrowded due to the presence of so many Syrian children. But, again, we do not have the budget to do so.”

Kelly is full of praise for the some 1,200 Lebanese communities, like Qaa, that – with little or no help from the government – give shelter and more to Syria’s refugees. “I can’t think of a country that, proportionally, has done so much – ever,” she said. “A mayor in the south of Lebanon, where some 60,000 refugees have found a safe haven, told me ‘you speak of refugees, we speak of neighbors, and we are ashamed we cannot do more.’”

Nevertheless, the tension is rising. Lebanese shopkeepers complain about Syrians opening up shops and selling cheaper produce. In Beirut, the streets are filled with Syrian beggars and shoe shiners. Far more dangerous is the fact that the influx of refugees is sharpening Lebanon’s religious and political divide.

“Lebanon is absolutely in crisis,” Kelley concluded. “If there is not more aid soon, I fear the local communities will no longer be able to support the refugees, which entails a huge danger for the mosaic that is Lebanon. Stability in Lebanon will depend to a large extent on foreign political and financial support.”

May 22, 2013 0 comments
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The Buzz

Morning briefing: 22 May 2013

by Executive Staff May 22, 2013
written by Executive Staff

Economy and Policy

Saudi economic growth will slow to 4.4 percent in 2013 from 6.8 percent last year due to an expected fall in oil production, the International Monetary Fund has said.

More from AFP


Lebanese commercial banks will not be authorized to pour investments into potential public-private partnerships, Central Bank Governor Riad Salameh said Tuesday, adding that capital markets and financial institutions would fill the gap.

More from The Daily Star

 

Companies and Business

Lebanese farmland investor GLB Invest plans to sink up to $800 million in Sudan to produce animal feed to be sold to Saudi Arabia.

More from Reuters

Dubai contractor Arabtec has announced it has resolved a labour dispute that resulted in a four-day work stoppage without clarifying whether the workers’ demand for higher wages were met.

More from Reuters

 

Bahrain Telecommunications Co (Batelco), which has suffered a sustained profit slump, said Sheikh Mohamed bin Isa al-Khalifa had quit as chief executive and his predecessor would temporarily re-take the helm.

More from Reuters

 

Global power giant Siemens has been awarded two contracts valued at about SR1bn ($266m) by state-run utility Saudi Electricity Company (SEC).

More from Reuters

 

May 22, 2013 0 comments
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The Buzz

Morning briefing: 21 May 2013

by Executive Staff May 21, 2013
written by Executive Staff

Economics and Policy

Bank Audi has sounded the alarm over a substantial rise in Lebanon’s public debt and budget deficit at the beginning of the year, warning against policies that could further weaken the country's financial stability.

More from The Daily Star

 

Elsewhere in Lebanon, the state energy company has promised that increased power rationing will end "very soon."

More from The Daily Star

 

Syria’s pharmaceutical industry once catered to 90 percent of the population’s needs, but a shortage of foreign currency has brought production to a near halt, a pro-regime daily reported Monday.

More from AFP

 

Kuwait's bourse extended sharp year-to-date gains in heavy trading Monday, while profit-taking weighed on bourses in the UAE and other markets were mixed.

More from Reuters

 
Economic growth in the UAE accelerated to 4.4 per cent in inflation-adjusted terms in 2012 from a downwardly revised 3.9 per cent the previous year as activity picked up across all sectors, its statistics office said on Sunday.
 
More from Reuters
 
 
Companies and Business

Saudi Aramco has invited bids for the construction of a 2,400 megawatt (MW) power plant in Jizan, near a 400,000 barrel-per-day oil refinery which it is currently building.

More from Reuters

 

Abu Dhabi private equity firm Gulf Capital is close to signing a $359.38 million Islamic loan for its company Gulf Marine Services, some of which will be paid out to investors as dividends.

More from Reuters

May 21, 2013 0 comments
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Real Estate

Behind Beirut’s newest luxury development

by Thomas Schellen May 21, 2013
written by Thomas Schellen

One of Beirut’s most ambitious residential tower developments, Damac Tower, has now reached ground level. United Arab Emirates-based luxury developer Damac Properties is behind the venture, and Executive sat down with Managing Director Ziad el-Chaar to discuss the project and the company.

Can you tell us how many units in the Damac Tower have been sold?

In total we have sold approximately 45 percent of the units in the development. In the current business environment of Lebanon, which is challenging to all, we are selling more of the smaller units than the big units.

What makes your project appeal to buyers?

The starting point of a premium luxurious project is the location. The second point is that the uniqueness of this tower’s design complements the premium location. [The third factor] is that we brought in one of the top Italian designers in fashion and homes to design the interiors of this project, starting from the lobby and going into each and every apartment. The people that are buying and investing in this project will have a very exclusive property in a project that cannot be repeated in Beirut.

Are your prices competitive?

Our prices today are at an approximately 20 percent premium [over other projects in the central district]. But what I have told you in terms of advantages of our product, these are much higher than 20 percent, so you are actually getting a good bargain.

What do buyers of high-end luxury projects look for more than anything else?
When you talk about premium luxury, two things go hand in hand, which are uniqueness and exclusivity. [These] are very important for this type of customer.

One encounters different customer groups also in the luxury segment, for example those who understate their wealth and emphasize privacy versus those who emphasize prestige or those who buy a luxury property to leave something behind. Knowing these categories, what do you see as the main factors motivating the buyers of super-luxury apartments in our part of the world?  

As we are talking about real estate, you can never separate real estate from return on investments because real estate is one of the best tools to complement your portfolio. This is definitely one of the factors, and when you look at our company, this is where people trust us because we are a developer that delivers.

The other element, which is important in towers but would not apply similarly if you were buying a mansion or villa, is property management. In strata management, which is management of shared ownership, you see many times a set of owners where perhaps one or two care about the investment and the building and several others do not understand the value of property management. The only protection for your investment is property management. One of the very important items that we put it in our sales contracts asks the owners’ association to appoint us as property managers for 15 years. We don’t just deliver the building and walk away.

Setting up property management for the one project in Beirut will obviously not involve economies of scale. Is it correct to assume that you do not have the objective to operate a large property management firm in Lebanon but only have a dedicated service for Damac Tower?

Correct. Our purpose is to be a developer and provide all the services around that development exclusively to our investors. I have to say one thing about the cost of property management. It is always related to the desire of the owners as to the services that they want. Our role comes [into play] when we gather the owners in an annual meeting where we show them a menu of services and the cost of those services.

And the decisions are then made by majority vote and are binding for all owners in the association?

Yes, and our role as property managers is to make sure that the decisions are implemented and to also assist the owners in the collection. Those high net worth individuals do not want to have to interfere in the upkeep of a building and we provide that service to them [at cost].

Does that mean that the value of the property management operation for you is in retaining the building’s incremental value gains?

We don’t have any interests in those buildings from a financial perspective, but a satisfied investor will spread the good word for the company and will possibly reinvest with us again in new projects.

What will be the additional cost of ownership per square meter (sqm) per year over the 15-year duration of the property management contract that buyers have to sign?

This is really hard to forecast for 15 years but we have created forecasts of service charges for the next two to three years. They are today approximately $30 per sqm per year.

Have your prices in Damac Tower Beirut gone up since we talked last?

Our prices in Beirut are premium prices and they have kept their value.

When discussing Damac in terms of competition, we have to talk on the regional level. In regard to Dubai as your main market, are you envious of Emaar Properties and their announcements of strong luxury demand where units in several projects were sold within hours?

You need to ask this question to Emaar because [on March 26] we had one of the biggest project launches in Dubai since 2008. We now have a property in Dubai which is called Damac Towers by Paramount. It is a mixture of the first luxury hotel by Paramount in the Middle East and three luxury hotel apartment towers branded by Paramount. We invited investors for the launch of phase one and phase one was sold in full on the night [of the launch].

How many units are in phase one?

200 units.

You said in a statement that you have Lebanese investors?

We have some Lebanese investors, yes.

You have partnered with the Versace fashion brand and now with the Paramount entertainment brand. How important is branding for you in marketing a project?

[Property consultancy] Knight Frank released a study in December 2012 on the value of branding and they found that for a market like Dubai, the branded product is demanding 60 percent higher value than the non-branded product.

Weren’t there some celebrity-branded towers in Dubai that flopped gloriously?

Branding has to add value. When you bring Versace to a Damac tower or, as we have done in Dubai, [fashion brand] Fendi, to a real estate project, both Versace and Fendi are very strong in interiors and you will get those interiors infused into your towers. Paramount is an entertainment company and they are bringing all their entertainment elements into the hospitality [aspect].

But isn’t the Paramount Resorts and Hotels actually a UAE-based company licensed to use the Paramount brand but owned by a Lebanese businessman, Ghassan Aridi? It is not a unit of Paramount Pictures?

The Paramount licensing division licensed Paramount Hotels and Resorts to a group of investors who have the exclusive use of the brand and resources for, I think, 50 years. This group of investors is going to seven cities, Dubai being one of them, to collaborate with developers like ourselves. The final brand and support you get from Paramount Pictures in Los Angeles. 

What brought Ziad el-Chaar into the property market and what is your passion about properties?

I have worked with two companies in my life and was always in business development. The real passion is in making sure that the business is growing, to enjoy that growth and making sure that the people who invest with you also see that growth.

May 21, 2013 0 comments
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Economics & PolicyHealthcare in Lebanon

Waiting for life

by Maya Sioufi May 20, 2013
written by Maya Sioufi

Twenty-one-year-old Peter Dagher has a rare type of leukemia, a form of blood cancer, and he needs a donor of hematopoietic stem cells (often referred to as bone marrow) for the treatment of his life-threatening disease.

Members of his family don’t match and nor do his friends, and Lebanon does not have a national registry where he could look for a potential donor.

Peter is not alone. The American University of Beirut’s Medical Center (AUBMC) comes across five to six patients a year in need of a such a procedure. Beirut’s Makassed Hospital currently has three patients anxiously awaiting a life-saving donor. 

With the absence of a registry where Peter and others like him can search for registered donors, they are left with two options: continue to ask people around them to undertake tests to see if they are a match — with each test costing between $300 to $470 — or reach out to international registries where chances of finding a match are even slimmer.

“We turned to registries in Europe, the United States and around the world, but finding a compatible donor from outside of Lebanon is difficult. Doctors told us that if the matches found abroad [which were not 100 percent compatible] were from the same country or region, they would have done the transplant. We need a national registry,” says Randa Dagher, Peter’s mother.  By not having a national registry, the opportunity to connect potential donors and future patients is lost.

Stem cell donation

Hematopoietic stem cell therapy is commonly known as a bone marrow transplant. These stem cells, the parents of all our cells, are found in their greatest abundance within bone marrow — the soft and fatty tissue that fills bone cavities. In the past, hematopoietic stem cells could only be collected from bone marrow via painful hip punctures. Now, medical advances mean the cells can be taken from the blood in a procedure called peripheral blood stem cell donation. (The centers that conduct the procedures are still named after the original procedure: “bone marrow transplant centers.”)

Whether harvested from bone marrow, umbilical cord blood (another rich source of stem cells) or peripheral blood, the transplant does not involve surgery, a persistent misconception. The procedure is similar to a
blood transfusion.

Although it is more complicated than going down to the Red Cross to give a pint of blood — it involves more testing, a few days of preparatory injections and a more intrusive machine — the simplified procedure has increased the popularity of stem cell donations in the past couple of years, increasing with it the likelihood of saving lives.

The two basic forms of transplants are autologous and allogeneic: the former makes use of a patient’s own stem cells and the latter uses cells from a donor of a matching type. The first hematopoietic stem cell transplant in Lebanon was autologous. It was performed at Makassed Hospital in 1997, 29 years after the world’s first truly successful attempt. 

In Lebanon, three hospitals — AUBMC, Makassed Hospital and Mount Lebanon Hospital (MLH) — conduct hematopoietic stem cell transplants. AUBMC and Makassed both have their own dedicated units where they conduct both autologous and allogeneic transplants. MLH only performs autologous transplants.

The majority of Lebanon’s transplants take place at AUBMC, where a total of 84 were performed in 2012, up from 45 in 2011.

Dr. Ahmad Ibrahim, head of the bone marrow transplant unit at Makassed Hospital, estimates that around 120 transplants were undertaken in the country last year.

Prohibitive costs

When a patient and their family are not losing sleep over the life-threatening disease, they are fretting about the hefty cost of the transplant. For an autologous transplant, prices vary from around $35,000 at MLH and Makassed to between $40,000 and $45,000 at AUBMC. When a donor is needed, the cost increases to $55,000 at Makassed and $75,000 at AUBMC. Currently Lebanon’s Ministry of Health only covers a small percentage of the costs of hematopoietic stem cell transfers.

When the donor is unrelated to the patient, additional medical needs push the cost even higher, to some $120,000 at AUBMC, the only hospital conducting such a procedure.

AUBMC performed Lebanon’s first transfer from a donor who was not related to the recipient in September 2011. The donor was found on the registry of the United States’ National Marrow Donor Program (NMDP), the world’s largest registry, and the stem cells were sent to Lebanon.

 

A match made in Lebanon

A donor’s compatibility is determined by testing for the human leukocyte antigen (HLA), a test of genetic markers on white blood cells. The chances of finding a perfect match is highest among siblings.

“The [head] of the laboratory sits with the family, draws the family tree and starts proceeding with tests within the family,” says Samar Okaily, nurse manager of the bone marrow transplant unit at AUBMC. When siblings and members of the family don’t match, then the probability of finding a match is higher among fellow Lebanese and Arabs. Still, finding one in Lebanon or even the Middle East is a Herculean task.

Besides Israel, there are only three countries in the region that have a bone marrow registry: Iran, the United Arab Emirates and Saudi Arabia. According to the Bone Marrow Donors Worldwide (BMDW), an aggregator of data from worldwide registries, Iran has around 5,000 registered donors, the UAE has just 45 and Saudi Arabia’s registry, established in 2011, is not even listed on the BMDW.

Donors from the Middle East account for a negligible 0.02 percent of the total 21 million registered potential donors on the BMDW, an alarmingly low figure. The US, with a population size close to the Middle East’s, accounts for over 35 percent of the registered donors.

More procedures, but still no registry

Dr. Ibrahim of Makassed Hospital, which has conducted over 400 transplants since 1997, says there are several reasons for the lack of a registry. First, the transplants have been around for just 15 years in Lebanon as opposed to half a century in some developed countries. Second, “in our population, families were big so you had a higher chance of finding a compatible donor among your siblings than in developed countries. As families have become smaller, there is a bigger need for a registry.”

Finally, and most importantly, Ibrahim believes economic and legal challenges have hindered the development of a national registry. “It needs money so the [stem cell] tests can be done for free, and it needs the [adequate] legal system to protect the donors’ [anonymity],” says Ibrahim, who estimates that it would cost a minimum of $3 million to establish such a registry in order to conduct the tests for free and raise awareness about stem cell donations. 

Dr. Fadi Nasr, who heads bone marrow transplants at MLH, blames the lack of a national registry on egos. “We disagree on [which doctor] will put his name on it; it’s politics,” he says, explaining that different hospitals are reluctant to share data with one another in order to establish a national registry. And with no law imposing such collaboration, he does not foresee the establishment of a registry in the near future.

Globally, more than 1 million blood stem cell transplants were performed as of the end of 2012, a medical procedure used in the treatment of over 70 diseases

Lebanon’s medical system is gearing up for an increasing number of transplants, with two of its leading hospitals planning to start performing more complex procedures in the near future.

When the European Group for Blood and Marrow Transplantation, a non-profit scientific forum, held its 2013 annual meeting last month, Dr. Ali Bazerbachi, who heads the bone marrow transplants unit at AUBMC, and Makassed’s Dr. Ibrahim were both speakers on high impact panels.

As Lebanon commits to saving lives with more complex hematopoietic stem cell procedures, it is critical that it provides a registry for patients in need of an unrelated donor, such as Peter. Without one, his life is at risk. “I want a donor now,” his mother told Executive. “I don’t know what to do”.

May 20, 2013 0 comments
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The Buzz

Morning briefing: 20 May 2013

by Executive Staff May 20, 2013
written by Executive Staff

Economics and Policy

Power cuts in Lebanon's capital Beirut have risen to nine hours a day due to a crisis at the country's new energy barge.

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Elsewhere in Lebanon, the World Bank has approved a $30 million soft loan aimed at supporting a government initiative to improve access to basic services in impoverished parts of the country.

More from The Daily Star

 

Economic growth in the United Arab Emirates accelerated to 4.4 percent in inflation-adjusted terms in 2012 from a downwardly revised 3.9 percent the previous year as activity picked up across all sectors, its statistics office said.

More from Reuters

 

Saudi crude exports fell to 7.42 million barrels per day (bpd) in March, 34,000 bpd less than in February, as Saudi power sector oil use rose and output edged lower, official figures released via the Joint Oil Data Initiative (JODI) show.

More from Reuters

 

About 11,000 police officers and soldiers blocked an annual conference yesterday at Tunisia's main religious centre by a radical Islamist movement that has been implicated in attacks across the country.

More from Associated Press

 

Companies and Business

Thousands of workers employed by Dubai's largest construction firm, Arabtec, stayed away from work on Sunday to back wage demands, a rare labour protest in the Gulf emirate, where trade unions are banned, staff said.

More from Reuters

 

Abu Dhabi developers Aldar Properties and Sorouh Real Estate surged in heavy trading on Sunday, in what analysts say is overall positive market momentum.

More from Reuters

 

Kuwait Petroleum Corporation (KPC) has replaced its chief executive and reshuffled its board after a unit was last month ordered to pay Dow Chemical US$2.5bn for a cancelled project.

More from The National

 

Loans to to small- and medium-sized enterprises by the state-backed Lebanese accelerator Kafalat fell to $33.5 million in the first four months of 2013, down nearly 25 percent from $44.5 million in the same period last year.

More from The Daily Star

 

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Economics & PolicyHealthcare in Lebanon

Medical tourism keeps growing

by Nabila Rahhal May 17, 2013
written by Nabila Rahhal

The phrase “medical tourism in Lebanon” conjures for many the idea of visitors from the Gulf sitting in cafés and waiting for nose jobs. In reality, plastic surgery makes up only a small percentage of the country’s international patients’ needs.

Eighty-five percent of foreigners who seek treatment in Lebanon do so for other medical reasons, according to Mounes Kalaawi, partner and chief executive of Clemenceau Medical Center (CMC). 

Despite the declining number of tourists visiting Lebanon, the country remains a regional healthcare destination because when it comes to one’s life, travel warnings and political turmoil become surmountable obstacles. 

Driven by necessity

International patients account for roughly 20 percent of the total number of patients in the hospitals interviewed. Those patients are mainly from the region — 80 percent of Clemenceau Medical Center’s international patients are Arab — and feel that their countries cannot provide a competitive level of healthcare. “I was a consultant for some hospitals in the Gulf, and I can tell you that their level of treatment is not as advanced as ours,” says Dia Hassan, president and CEO of Bellevue Medical Center (BMC).

Mohamad Sayegh, dean of the Faculty of Medicine and vice president of Medical Affairs at the American University of Beirut Medical Center (AUBMC), says that international patients are drawn to the highly specialized healthcare services at AUBMC. He says that the majority of cases that the center sees are serious and complicated and have been referred to them. 

Lebanon’s hospitals are especially reputable in the fields of oncology and digestive, cardiac and brain surgeries.

“The Iraqis don’t have a lot of good resources for radiation therapy…, so they tend to come here for those purposes,” says Sayegh. The number of Iraqis who come to AUBMC for treatment, mainly for cancer cases, has risen from 39 percent of the 2,297 international patients in 2010 to 58 percent of the 2,497 international patients in 2012. Both AUBMC and CMC plan to establish cancer centers in the coming years to keep up with the growing demand for such treatment.

CMC also introduced robotic surgery to the region, which is in high demand by international patients due to its noninvasive nature. 

Affordable & accessible

Medical procedures in Lebanon cost less than they do in Europe or the United States, says Kalaawi of CMC. 

BMC’s Hassan explains that most Gulf governments subsidize treatment abroad for their nationals. They choose Lebanon because the country is close to them — not only in distance but also in language and culture.

The unstable political climate of summer 2012 did impact medical tourism: demand for elective surgery from international patients decreased, and hospitals that depended on that saw their business decrease. “The Gulf countries simply stopped sending their nationals to Lebanon for healthcare and we… felt their absence,” says Hassan. The most performed operations in BMC are plastic surgeries. 

But those who could not afford to go elsewhere for pathological services still came to Lebanon. AUBMC reported a 5 percent growth in the number of its international patients in 2012. 

“We have a steady flow of international patients but this flow goes up and down according to the regional stability. The events of 2012 saw a reduction of international patients by 50 percent from certain nationalities but they were replaced by patients from other countries who were not affected by [travel] bans,” says Kalaawi, adding that if it were not for these regional disturbances, medical tourism would be a very important factor in the Lebanese economy. 

The number of patients from Syria is increasing as well. “The war in Syria obviously had an impact on the medical centers there and people who have complicated illnesses are forced to seek healthcare elsewhere and some come to Lebanon,” says AUBMC’s Sayegh, who adds that the massive influx of Syrian refugees augments this number. 

Travel outside one’s country for healthcare is not a new or unique situation, and while Lebanon remains a key destination for medical tourism in the region for the moment, instabilities in the country may drive some potential business away and allow other countries to catch up with us in this field. 

May 17, 2013 0 comments
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The Buzz

Morning briefing: 17 May 2013

by Executive Staff May 17, 2013
written by Executive Staff

Economics and Policy

Bahrain, which last year boosted state spending to quell political unrest, urgently needs to reform its economy to stop its debt burden becoming unsustainable, the International Monetary Fund (IMF) said.

More from Reuters

 

Global demand for gold jewellery recorded a 12 per cent year-on-year increase in Q1 2013, owing to high demand in Asian and Middle Eastern markets.

More from Gulf Business

 

Demand for trade-related credit insurance in the GCC is expected to rise by nearly 40 per cent this year as companies seek to improve their ability to secure finance and cover risks in Europe, Africa and other markets.

More from The National

 
 
Gaza-based Palestinians can now order Kentucky Fried Chicken to go thanks to a new smuggling service which brings takeout from Egypt via a network of underground tunnels.

 
More from AFP

 

Companies and Business

Kuwait Airways Co. signed a deal with Airbus to buy 15 A320neo and 10 A350-900 planes with options for 10 more, five from each category, chairman Sami al-Nasef has said.

More from AFP

 

Abu Dhabi's clean energy company Masdar and the International Finance Corporation have penned an agreement that could see the World Bank subsidiary provide as much as $1.5 billion in financing to the company.

More from The National

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Since its first edition emerged on the newsstands in 1999, Executive Magazine has been dedicated to providing its readers with the most up-to-date local and regional business news. Executive is a monthly business magazine that offers readers in-depth analyses on the Lebanese world of commerce, covering all the major sectors – from banking, finance, and insurance to technology, tourism, hospitality, media, and retail.

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