UAE: An Ideal Business Destination For Pharmaceutical Companies
The United Arab Emirates has continued to build on the flourishing legacy of its forefathers and is among the world’s fastest-growing economies.
Since its independence in 1971, the UAE’s economic growth has grown manifolds on the back of sector-wise growth of diverse industries. However, the pharmaceutical sector has remained one of the significant contributors to the UAE GDP.
The UAE’s pharmaceutical market is expected to grow by 27% between 2021 and 2025 as the government pushes for the expansion of the pharma sector by becoming a regional pharmaceutical centre. As a result, the size of the local pharmaceutical market is expected to hit $4.7 billion by 2025, up three times from 2011.
The UAE Government’s Initiatives For The Pharma Industry
The UAE Ministry of Health and Prevention (MOH) oversees all regulatory functions concerning pharmaceuticals throughout the UAE. With the rapid growth of the pharmaceutical industry, the UAE government has left no stone unturned to contain the rising drug prices.
Till December 2017, the UAE had cut the costs of 8,732 pharma products. In addition, with generic drug substitution policies in place since 2018, the UAE has about 6,176 generic drugs, which cost nearly 60% less than branded medicines.
Multinational companies look to increase their footprint and greater access to the region. Meanwhile, the UAE is eyeing more investments in the pharma space while widening its regional export reach.
In 2021, Abu Dhabi and Belgium announced a collaboration to build an origin-to-destination pharmaceutical air corridor to create the world’s leading end-to-end pharmaceutical supply chains while addressing pharmaceutical demand flows between the East and the West.
This move will enhance Abu Dhabi’s positioning as a world-class pharma logistics hub.
Key Drivers Redefining The Regional Pharmaceutical Industry
The UAE has established a robust foundation for the sustainable growth of the pharmaceutical industry. Let’s take a look at the key drivers of the regional pharmaceutical industry.
- Harnessing disruptive technologies
- Nurturing local talent to boost capacity and capability
- Developing R&D and manufacturing hubs
- Stakeholder collaboration with an agile regulatory framework
- Attracting FDI to push the boundaries of innovation further
These factors have pushed many global pharma companies to strengthen their base in the UAE.
The Growth Of Pharma Companies In The UAE
With a rapidly growing domestic pharmaceutical manufacturing industry, the UAE has become a favorite destination of global pharma companies.
As international companies increasingly look toward the UAE for an established presence, let’s understand what makes this region attractive for pharma companies to expand their business.
- The growth of the domestic market is attracting foreign players.
- UAE is strategically positioned between Asia, Europe, and Africa.
- UAE has the most sophisticated and efficient logistical system.
- UAE has a business-friendly environment.
- Modernized system of intellectual property protection in the UAE.
- Political and economic stability attracts businesses/investors.
- UAE has positioned itself as a regional hub for the pharma industry
Pharma Solutions is a leading UAE-based pharmaceutical platform, well-positioned as a partner of choice for pharmaceutical and innovative healthcare companies who seek to venture into the emerging markets of the GCC & MENA region.
In our previous blog, we gave a detailed outline of how pharmaceutical companies can register their products in the UAE.
We have a team of experienced professionals possessing extensive knowledge in facilitating licensing, commercialisation, marketing, and the distribution of FDA/EMA-approved innovative pharmaceuticals in the UAE.
With commercial activities in 14+ countries of the GCC and MENA region, Pharma Solutions aims to provide effective solutions to businesses wanting to expand their reach and be a part of a rapidly growing economy.