INTERVIEW: Cambridge Medical focuses on post-pandemic rehabilitation

Illustration by Luis Grañena
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Updated 01 November 2020
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INTERVIEW: Cambridge Medical focuses on post-pandemic rehabilitation

  • CEO of UAE-based clinics group explains why Saudi Arabia is the next stop in Middle East expansion strategy

At one point towards the end of my Zoom conversation with Howard Podolsky, chief executive officer of the Abu Dhabi-based Cambridge Medical and Rehabilitation Center, I suggested that he sounded a lot more like Dr Anthony Fauci, the American public health advisor, than he did President Trump.

“I’m a doctor at heart. It’s all about being smart and following the science,” Podolsky said, leaving little doubt as to how he views the big debate going on about how to react to the COVID-19 pandemic. “From a political and a pandemic standpoint, it breaks my heart to see all the craziness in the USA,” he added.

Podolsky, who has worked in the medical sector in the Middle East since 2012, has watched the progress of the pandemic in the region and the world with an expert’s eye since the beginning of the year, all the while running the business that has played a big role in alleviating pressure on the public health sector in the UAE as it battled the infection.

Cambridge is a specialist operator in the post-acute medical field, providing care and rehabilitation treatment for long-term ailments to patients from all age groups with different clinical needs.

That function was of crucial importance when cases were rising and hospitals were under threat of being overwhelmed in the early spring. Many COVID patients were in urgent need of intensive care treatment, often involving ventilation, and hospital capacity was under strain.

“The authorities saw a serious and significant need, and we had the flexibility to take non-COVID patients to free up acute care capacity, giving them the capacity to surge up if needed,” Podolsky said.

That co-operation between Cambridge and the UAE medical authorities has continued since the first wave of the virus. Podolsky’s two centers in Abu Dhabi and in Al-Ain have been taking post-COVID patients who are no longer infectious but may still need ventilator treatment, or are in therapy to wean them off ventilators, which is one of Cambridge’s specialties.

“Many patients no longer need to be in intensive care but still need treatment. All our staff are educated and trained in the science and technology of transitional ventilator weaning. It can take months or even years. We can incorporate them into our long-term rehabilitation services,” he said.

Cambridge is the only provider of long-term, post acute care in the UAE, offering facilities for in-patients through its 106 beds in the capital, 90 in Al-Ain, as well as out-patient and homecare facilities.

Last year, it saw a gap in the market in Saudi Arabia, and opened up in Dhahran, the home of Saudi Aramco, where it already had a relationship with the oil company’s long-term medical partner, Johns Hopkins.

“Saudi Arabia was a logical place for us,” Podolsky said. Not only did the much bigger population than the UAE make it a market rich in potential, but it was also relatively underserved in terms of post-acute care and rehabilitation facilities. “It made sense for us to explore the opportunity to develop a platform for long-term care in the Kingdom,” he added.


BIO

BORN: Toronto, Canada 1965

EDUCATION

  • Graduate from Buffalo School of Medical Science
  • Graduate from St Louis University School of Law
  • MBA from Washington University School of St Louis

CAREER

  • Various senior executive positions in US healthcare organizations
  • Group chief of staff, SEHA Abu Dhabi
  • Executive in residence, TVM Operations
  • Group chief executive officer, Cambridge Medical and Rehabilitation Centre.

Cambridge built a 60-bed “brownfield” centre in Dhahran that takes referrals not just from Johns Hopkins but also from other parts of the Saudi healthcare system. “There is a big ‘bed gap’ in Saudi post-acute care, and we are looking at opportunities elsewhere, around the big population centers in Riyadh and Jeddah,” Podolsky said. Cambridge could look to acquire a potential centre, as well as do a “brownfield” build.

The medical sector in the Kingdom is one of the areas earmarked for big expansion under the Vision 2030 plan to diversify the economy, and hospitals, clinics and medical centers have been discussed as possible subjects for privatization under the Vision.

Podolsky was a medical doctor before he studied law and business in the USA and then joined SEHA, the Abu Dhabi health services authority.

Cambridge launched in the UAE in 2014 with the backing of private equity investors led by TVM Capital Healthcare, the big global healthcare investment group. As with most medical operations in the region, it is run as a commercial operation, and Podolsky said that the COVID crisis has — on balance — been good for business.

“We were busy already, but it has been positive for us. Unlike some medical businesses in the regions, we were never dependent on whether a patient makes a decision on elective health treatment,” he said.

Non-COVID related business — whether in strokes or post-traumatic traffic accident care — has continued during the pandemic. “Life doesn’t stop because there is a pandemic,” he said.

It was recently reported that TVM was looking to exit its investment in Cambridge, most likely via a sale of its stake to another hospital business. Podolsky is guarded on that possibility.

“Shareholders are always looking at opportunities. Our focus is on creating value for all our stakeholders — investors, customers and patients,” he said.

Is it the right time to sell a medical business in the middle of the biggest global health threat experienced for a century?

“It depends what kind of business it is. If it’s a business that depends on elective, discretionary decisions by patients, maybe not. But we are an integral part of the healthcare eco-system in the region, and we have embedded ourselves in it,” Podolsky said.

The other factor that has complicated the medical business scene in the UAE is the scandal that has overtaken NMC Healthcare, the Abu Dhabi-founded company that has gone bust with billions of dollars in debts and allegations of theft, fraud and forgery flying. Is there an “NMC discount” applied to the medical sector in the region?

“Healthcare organizations should not be painted with a broad brush. We are founded on integrity and governance, and TVM is focused on that as ethical and accountable business practice,” Podolsky said.

One of the NMC businesses, ProVita International Medical Centre, was acquired from investors including TVM in 2015, and operates in a similar segment to Cambridge. Many parts of NMC’s business are believed to be up for sale under a strategy to reduce its high levels of debt. “We’ll evaluate opportunities as they may or may not become available,” Podolsky said.

With his doctor’s hat back on, Podolsky talked more about the trajectory of the COVID-19 pandemic, and the possibility of a vaccine to halt the spread of a virus that is currently in a damaging “second wave” phase in many parts of the world. He is “cautiously optimistic.”

“I hope we could see several safe and successful vaccines by the end of the year, but getting them delivered will be the challenge. Remember we’re talking about a vaccine for more than 7 billion people, maybe with two shots.

“But I don’t think COVID is going away. It will not disappear, it will not be eradicated like polio. I think there will be micro-outbreaks for a considerable time, and it will be part of the public health ecosystem. We will just have to live with it, like we do with flu,” he said.

Part of “living with it” involves more testing, which he said could be an explanation for the big rise in cases in some countries that have ramped up testing efforts.

The UAE is treating front-line health workers with a Chinese-made vaccine, while also co-operating with manufacturers in other countries, but Podolsky has no time for “vaccine nationalism” by which countries try to be first with a cure or reserve treatments for their own populations. “It’s unfortunate that we have political issues around public health and pandemics. We need to follow the science and be transparent, open and honest,” he said.

He also took some comfort from the falling death rates from the disease, which he attributed to better therapeutics and treatment. “We’ve got smarter about how we treat patients to help them overcome the infections and issues with their immune response. As we get better, we will see fewer fatalities,” he said.

On the big debate about whether the world should just get on with its economic life regardless of the health threat to the most vulnerable, he said: “It is not a binary choice. We should protect the most vulnerable — the old, the obese and other high risk people — and take simple measures to target high risk people, like social distancing, wearing masks and washing hands,” he said.


Pakistan PM urges all sectors to ensure tax compliance for economic growth

Updated 19 sec ago
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Pakistan PM urges all sectors to ensure tax compliance for economic growth

  • Faced with persistent tax evasion, officials are implementing automated tax collection system
  • Government says it wants to increase the tax-to-GDP ratio to 13 percent in the next three years

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday called for all sectors to fulfill their tax obligations, emphasizing that economic development hinges on collective responsibility and adherence to tax laws.
The government has set an ambitious target to increase the tax-to-GDP ratio from less than 10 to 13 percent over the next three years, describing the current revenue generation level as “unsustainable.”
Faced with persistent tax evasion, authorities are implementing reforms aimed at automating the tax collection system, broadening the tax base, and enforcing strict compliance measures.
The prime minister raised the issue while chairing a meeting to review the economic situation in the country.
“Economic development is only possible when everyone fulfills their share of responsibility,” he was quoted as saying in a statement released after the meeting by his office. “All sectors must pay taxes to contribute to national progress.”
During the meeting, he noted that inflation had decreased from 38 percent to seven percent, and the interest rate had been reduced from 22 percent to 15 percent. He maintained these developments were expected to boost business activity and create new employment opportunities in the country.
The prime minister also commended the provincial administrations for their reforms in the agricultural sector, pointing out it had contributed to Pakistan’s economic stability.
Pakistan’s economy has faced significant challenges in recent years, including high inflation and fiscal deficits.
The government’s focus on tax reforms and economic stabilization measures aims to address these problems and set the country on a path toward sustainable growth.


Dubai’s annual inflation rate slows to hit lowest level in 14 months

Updated 49 min 24 sec ago
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Dubai’s annual inflation rate slows to hit lowest level in 14 months

RIYADH: Dubai’s annual inflation rate slowed again in October, reaching its lowest level in 14 months, official figures showed.

According to data released by the Dubai Statistics Center, the emirate’s inflation rate reached 2.4 percent in October, driven by a deeper deflation in transport prices, which fell by 10.6 percent compared to an 8 percent decline in September.

Dubai’s inflation rate has been relatively low compared to other major cities in the region, reflecting the government’s proactive measures to manage price stability and sustain economic growth. 

Amid global inflationary pressures, the emirate’s economy has remained resilient, benefiting from diversified sectors such as tourism, real estate, and trade.

The data further indicated a deflation in the tobacco price category to 3.63 percent, similar to that recorded in September.

The figures also showed slower deflation in the information and communication category, which saw an annual fall of 1.92 percent, compared to a decline of 2.05 percent in September.

Recreation, sport, and culture prices witnessed a year-on-year drop of 1.74 percent in October, a smaller decrease than the 2.66 percent seen in the previous month.

The data also revealed that the housing, water, electricity, gas, and other fuels sector witnessed a price increase, with a 7.16 percent surge, compared to 7.02 percent in September.

The insurance and financial services sector also witnessed a rise in prices, with a 5.83 percent rise in October, compared to 5.20 percent in the previous month.

Prices in education, health, and food and beverages also advanced in October. Education rose by 2.94 percent, health by 1.87 percent, and food and beverages by 1.85 percent. 

In comparison, September’s increases were 2.94 percent for education, 1.88 percent for health, and 1.81 percent for food and beverages. 

The personal care, social protection, and miscellaneous goods and services sector, recorded a 1.67 percent jump in prices, while clothing and footwear was up 1.15 percent.

Both of these were lower rises than in September.


Arab stock markets up 2.14% in Q3, surpassing $4.3tn in market capitalization

Updated 6 min 14 sec ago
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Arab stock markets up 2.14% in Q3, surpassing $4.3tn in market capitalization

RIYADH: Arab stock markets saw a 2.14 percent growth in the third quarter of 2024, driven by strong performances in Beirut, Egypt, and Damascus, according to the Arab Monetary Fund’s composite index. 

The AMF’s quarterly report highlighted annual growth of 1.5 percent in the index, reflecting gains in 13 of the 16 tracked markets, while three recorded declines. 

Regional reforms, such as Egypt’s privatization initiatives and Saudi Arabia’s Vision 2030 projects, played a significant role in bolstering market activity. 

The UAE’s diversification efforts also contributed to the strength of its financial markets, particularly in renewable energy and technology sectors.  

The AMF said: “The positive sentiment in Arab financial markets reflects investor confidence in ongoing economic reforms and robust corporate performances.” 

Top performers

The Casablanca Stock Exchange. Shutterstock

The Beirut Stock Exchange led the gains with a 29.03 percent rise, marking the highest performance among Arab exchanges despite ongoing Israeli attacks on various Lebanese regions, including the capital.

According to the World Bank, the violence in the country has caused $8.5 billion in damages and losses, including $3.4 billion in physical damages and $5.1 billion in economic losses.

BSE was followed by the Egyptian Exchange, which increased by 13.76 percent, and the Damascus Securities Exchange, with a 12.66 percent rise. 

In the UAE, Dubai Financial Market recorded an 11.75 percent gain, reflecting strong investor activity. 

Other markets also posted significant performances. The Casablanca Stock Exchange grew by 8.06 percent, while stock markets in Qatar and Iraq posted increases of 6.52 percent and 5.35 percent, respectively. 

The Saudi Exchange, known as Tadawul, saw healthy growth of 4.68 percent, underpinned by gains in non-oil sectors aligned with Vision 2030 objectives. Algeria and Oman reported smaller but steady increases of 4.9 percent and 0.49 percent, respectively. 

Despite the positive trend in most markets, three exchanges reported declines, with Bahrain’s stock market falling by 0.63 percent, Amman’s by 0.82 percent, while Palestine’s saw the steepest drop at 7.78 percent.  

Market capitalization  

The combined market capitalization of Arab financial markets grew by 2.54 percent in the third quarter of 2024, reaching $4.30 trillion, up from $4.19 trillion in the previous three-month period. This represented an increase of $106.55 billion. 

Abu Dhabi Securities Exchange contributed the most to this growth, adding $37.30 billion, followed by Dubai Financial Market with a $21.35 billion rise. Other notable increases came from Saudi Arabia, Qatar, and Morocco.  

In terms of individual exchanges, the Saudi Exchange retained its position as the largest contributor, representing 62.7 percent of the total Arab market capitalization. 

The UAE’s markets, including Abu Dhabi and Dubai, collectively accounted for 18.6 percent, while Qatar, Kuwait, and Morocco contributed notable shares. The rest of the Arab markets showed varying levels of growth, with Beirut and Cairo posting sharp rises in market value.  

Trading volumes  

The value of traded shares across Arab markets soared by 47.46 percent in the third quarter of 2024, reaching $328.92 billion compared to $223.06 billion in the previous three-month period. 

The Iraq Stock Exchange reported the highest surge in trading volumes, increasing by 67 percent. The Egyptian Exchange followed with a 51.50 percent rise, while the Saudi Exchange and Abu Dhabi Securities Exchange also saw substantial gains of 25.73 percent and 21.01 percent, respectively.  

Some markets experienced a downturn in trading activity. Palestine, Algeria, and Casablanca saw declines in traded volumes, attributed to specific local economic factors.  

Across the Arab region, key sectors such as real estate, technology, and financial services performed strongly, attracting both local and foreign investments. 

The financial results of listed companies and the announcement of quarterly dividends boosted investor confidence. 

Key factors  

Arab markets demonstrated resilience despite global economic uncertainties, including fluctuating oil prices and geopolitical challenges. 

The AMF reported that easing monetary policies by major central banks, such as the US Federal Reserve and the European Central Bank, improved global liquidity flows into emerging and regional markets.  

The report also noted the impact of oil price volatility, which declined by approximately 15 percent during the third quarter of 2024. 

While oil-exporting nations, such as Saudi Arabia and the UAE, maintained steady market performance, oil-importing nations like Egypt and Jordan benefited from reduced energy costs, alleviating inflationary pressures and supporting economic stability.  

Global view

Arab stock markets’ 2.14 percent growth in the third quarter of 2024, with a total market capitalization surpassing $4.3 trillion, is relatively a great performance, especially when compared to other global equity markets. 

For instance, the S&P 500 Index rose by 5.9 percent, while the Russell 2000 Index gained 9.3 percent, according to the investment consulting firm NEPC.

Internationally, emerging markets outpaced the Arab region, with the MSCI Emerging Markets Index rising by 8.7 percent and the MSCI China Index soaring by 23.5 percent. 

However, the Arab markets’ performance is notable for its resilience, especially amid geopolitical tensions and fluctuating oil prices, reflecting the ongoing impact of structural reforms and regional initiatives like Saudi Arabia’s Vision 2030 and Egypt’s privatization efforts.

Outlook  

The AMF emphasized the role of continued economic reforms and diversification in shaping the outlook for Arab financial markets. 

“The ongoing efforts to attract foreign investment, improve market transparency, and support non-oil sectors are crucial for sustaining growth and enhancing the competitiveness of Arab financial markets,” AMF said.


Oil Updates – crude nudges up after Russia-Ukraine tensions escalate

Updated 18 November 2024
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Oil Updates – crude nudges up after Russia-Ukraine tensions escalate

SINGAPORE: Oil prices edged up on Monday after fighting between Russia and Ukraine intensified over the weekend, although concerns about fuel demand in China, the world’s second-largest consumer, and forecasts of a global oil surplus weighed on markets.

Brent crude futures gained 29 cents, or 0.4 percent, to $71.33 a barrel by 8:02 a.m. Saudi time, while US West Texas Intermediate crude futures were at $67.20 a barrel, up 18 cents, or 0.3 percent.

Russia unleashed its largest air strike on Ukraine in almost three months on Sunday, causing severe damage to Ukraine’s power system.

In a significant reversal of Washington’s policy in the Ukraine-Russia conflict, President Joe Biden’s administration has allowed Ukraine to use US-made weapons to strike deep into Russia, two US officials and a source familiar with the decision said on Sunday.

There was no immediate response from the Kremlin, which has warned that it would see a move to loosen the limits on Ukraine’s use of US weapons as a major escalation.

“Biden allowing Ukraine to strike Russian forces around Kursk with long-range missiles might see a geopolitical bid come back into oil as it is an escalation of tensions there, in response to North Korean troops entering the fray,” IG markets analyst Tony Sycamore said.

Saul Kavonic, an energy analyst at MST Marquee, said: “So far there has been little impact on Russian oil exports, but if Ukraine were to target more oil infrastructure that could see oil markets elevate further.”

In Russia, at least three refineries have had to halt processing or cut runs due to heavy losses amid export curbs, rising crude prices and high borrowing costs, according to five industry sources.

Brent and WTI slid more than 3 percent last week on weak data from China and after the International Energy Agency forecasted that global oil supply will exceed demand by more than 1 million barrels per day in 2025 even if cuts remain in place from OPEC+.

China’s refinery throughput fell 4.6 percent in October from last year and as the country’s factory output growth slowed last month, government data showed on Friday.

Investors also fretted over the pace and extent of interest rate cuts by the US Federal Reserve that has created uncertainty in global financial markets.

In the US, the number of operating oil rigs fell by one to 478 last week, the lowest since the week to July 19, Baker Hughes data showed.


World Defense Show 2026 to showcase record number of Chinese companies in Riyadh

Updated 17 November 2024
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World Defense Show 2026 to showcase record number of Chinese companies in Riyadh

RIYADH: The third edition of the World Defense Show, scheduled to take place in Riyadh from Feb. 8-12, 2026, has secured a record number of participants, with more than 100 companies from China confirmed to take part.

Notably, the China Pavilion has already filled 88 percent of its exhibition space, making it the second-largest national presence at the event, surpassing even the host nation, Saudi Arabia.

This strong participation underscores the growing global appeal of the show. Since its debut, WDS has seen impressive growth, with exhibition space expanding by 54 percent between 2022 and 2026, more than doubling its size. As of now, over 50 percent of the total floor space for WDS 2026 has already been sold.

The announcement follows the successful conclusion of the second edition of WDS, which hosted 773 exhibitors from 76 countries, facilitated SR 26 billion ($6.9 billion) in deals, and attracted 106,000 trade visits.

“The significant interest and commitment from Chinese exhibitors is a testament to the prominence WDS holds in the global defense space,” said Andrew Pearcey, CEO of World Defense Show.

“Our goal is to bring together global and local stakeholders to advance networking opportunities, strengthen global knowledge-sharing, and shape the future of defense technology,” he said.

The high level of interest from Chinese firms was also evident at the 15th Airshow China in Zhuhai, held from Nov. 12-17. Senior WDS representatives attended the event to engage with potential exhibitors, offering them the opportunity to secure their space at WDS 2026, which is rapidly filling up.