UAE localizes investments in pharmaceutical industries

The Interregional Center for Strategic Analysis in Abu Dhabi confirmed that the UAE is one of the most prominent countries in the region and the world interested in enhancing its local pharmaceutical industry, supported by the increase in spending on healthcare, pointing to the UAE’s efforts to localize investments in the pharmaceutical industry. He said that the country’s interest in this industry comes in the context of the global momentum around the pharmaceutical industry sector, which exceeds $1.6 trillion in size.

A recent research paper by the center reviewed the dimensions of the UAE’s interest in the pharmaceutical industry in Abu Dhabi, where the pharmaceutical industry has become a major contributor to the production of medicines in the country, as its contributions reached about 27% in 2021, while the value of production in the pharmaceutical sector in Abu Dhabi in that year amounted to about $284 million.

Industrial strategy

Interregional added that Abu Dhabi is adopting an industrial strategy to support the competitiveness of the sector, investing AED 10 billion to double the size of the manufacturing sector to AED 172 billion, increasing non-oil exports by 148% to AED 178.8 billion, and creating 13,600 jobs by 2031. The strategy also seeks to make Abu Dhabi a regional center for innovation in the pharmaceutical and cosmetics industry.

The center indicated that in March 2024, Mubadala Investment Company concluded a final agreement to acquire “Kelix Bio,” a company specializing in providing advanced generic medicines in emerging markets, to enhance the pharmaceutical industry system in the country. “Kelix Bio” also acquired pharmaceutical manufacturing companies in India, Egypt, Malta and Morocco.

Interregional stressed that the pharmaceutical industry is a major driver of economic growth and industrial diversification in the UAE. Accordingly, the country is investing heavily in establishing research centers and modern pharmaceutical factories, and providing incentives to foreign and local investors in this field, which will push towards strengthening the country’s position as a regional center for the pharmaceutical industry, and attracting foreign direct investment in this field.

Pharmaceutical factories

Data from the organizing committee of the Dubai International Pharmaceuticals and Technologies Conference and Exhibition (DUPHAT) 2024 indicates that the number of pharmaceutical factories in the UAE exceeds 35 factories, providing more than 2,500 locally produced medicines, while the Ministry of Health and Community Protection indicated that the number of pharmaceutical factories in the country reached 24 factories in 2022.

In turn, Dubai Science Park, part of TECOM Group, hosts a group of the most prominent companies in the global medical sector, such as AstraZeneca, Beijing, Pfizer, and Virax Biolabs.

Global Pharma, which currently owns three factories, is one of the leading pharmaceutical companies in the country and the region. It is owned by Dubai Investments and was established more than 25 years ago in the UAE. Its annual sales reach AED 450 million and have witnessed a 100% growth over the past five years.

Gulf Pharmaceutical Industries (Julphar), one of the largest pharmaceutical manufacturers in the Middle East and Africa, and one of the largest producers of insulin in the world, was established in 1980. Its products are distributed in more than 30 countries across five continents, and its 12 manufacturing facilities produce up to one million boxes of medicine daily.

“Developing the pharmaceutical industry after the Covid-19 pandemic has become an indispensable imperative, as governments seek to localize their industries in this vital sector, especially during the past four years, and pharmaceutical companies have become the focus of governments’ attention,” Interregional said.

Global Pharmaceutical Market

The Interregional Center stated that the US market dominates half of the global pharmaceutical market sales, with a 51% share of the global pharmaceutical market, and total sales of about $678 billion, while emerging markets accounted for 23% of the market sales volume, which includes countries such as China, Russia, Brazil and India, while European sales amounted to about 19% of the global pharmaceutical market.

The global pharmaceutical market has witnessed significant growth in recent years, with the total global market estimated at $1.6 trillion in 2023, an increase of more than $100 billion compared to 2022, and total spending on research and development in the industry estimated at $244 billion globally.

Over the past five years, global pharmaceutical spending has grown by 35% and is expected to increase by 38% through 2028, with new brands likely to contribute $193 billion to that growth.

• “Global Pharma” was established 25 years ago and is owned by “Dubai Investments” and currently owns 3 factories.

• Abu Dhabi adopts an industrial strategy to support the sector’s competitiveness and invests 10 billion dirhams to double the size of the manufacturing sector.

• 35 pharmaceutical factories in the country provide 2,500 locally produced medicines.