Middle East manufacturing set for huge growth, CPhI expert says

Favourable conditions in the United Arab Emirates (UAE) are resulting in a boom of pharmaceutical manufacturing across the region.

Manufacturers are benefitting from government incentive schemes to increase production, as well as a brand friendly environment and rising healthcare needs, all of which are fuelling surging demand.

Commenting on the Middle East and African market (MEA), Madhukar Tanna, chief executive officer of branded generic manufacturer Pharmax, and CPhI MEA expert, said: “The picture in the UAE is particularly favourable, as we don’t have a true generics sector – rather just branded generics. Drugs produced by manufacturers for sale in the UAE, whether generic or innovator, are licensed to a specific brand. This ensures the highest quality – for which UAE consumers and insurance companies are willing to pay. The other aspect is that consumers are also willing to pay a premium for drugs made by trusted brands, meaning that in the last few years we have seen a sudden growth of manufacturers. In addition, beyond the UAE there is of course the option of selling into other parts of the MENA region, providing other high-growth markets.”

The news comes ahead of CPhI Middle East & Africa, set to run in September this year. This year, the show will include finished dose drug companies, ingredients suppliers as well as contract manufacturers and machinery specialists, all of which are thought to responding to the growth potential of the region.

Many manufacturers in the region operate on a regional partnering model, working with suppliers outside of the UAE before manufacturing is then transferred to sites in Dubai.

However, in two years’ time, Tanna believes that ‘much of the development work will start to be conducted directly in the UAE’. More so, in five years, it’s likely that the industry will also act as contract manufacturers for supply into Europe, Tanna states.

The region is facing a number of barriers however, such as a need further integration across the Gulf Cooperation Council (GCC). Despite recent efforts, the GCC has fallen short of mutual recognition among all parties according to Tanna.

“At CPhI MEA we have seen a notable increase in new finished product manufacturers across the region looking to work with international partners for development and API, as well as sourcing regional distributors. The conditions are really favourable, and we continue to see an expanding base of manufacturing, particularly in the UAE, Jordan and Saudi Arabia,” said Cara Turner, brand director at Informa.