By: Fahad Al-Qasim**
It is clear that the drug market in the United Arab Emirates is of strategic importance to investors. Since 2016, the local drug sector has recorded a growth that exceeds the global average by 7.5%, and is expected to reach $4.54 billion, and a basic need has emerged to establish a manufacturing base for the drug. Before the outbreak of the pandemic, in order to support supplies, reduce costs and avoid shortages of medicines and treatments.
As part of our quest to provide value, we are committed to creating a strong platform to consolidate the UAE’s position as a distinct regional center for medicine and manufacturing, based on a series of initiatives and strategic acquisitions that we have implemented, and these initiatives have contributed to facilitating access to essential medicines at affordable prices, and the development of new and innovative treatments. .
Biological alternatives similar to chemical drugs
ADQ’s strategic acquisition of Pharmax Pharmaceuticals, which specializes in the manufacture of similar medicines, in its facility approved by the UAE and the European Union, came as a first step to support access to medicines at affordable prices. Our investment in “Biocon Biologics”, the largest biopharmaceutical company in India, aims to develop the production of bio-similar to chemical drugs, made from biological organisms in the United Arab Emirates, so that their specifications are almost identical to generic drugs. It is expected that the acquisitions of companies such as Amoun, one of the leading pharmaceutical and life sciences companies in Egypt, will support manufacturing, marketing and distribution in neighboring markets, taking advantage of the extensive networks of these companies.
ADQ also intends to expand its presence within the pharmaceutical manufacturing sector in the United Arab Emirates, by investing in new projects, through international partnerships, which will develop the country’s capabilities in various fields of manufacturing. Similarly, in the UAE, clinical trials are being conducted on new drugs and vaccines, as the government has allocated an additional budget to enhance productivity under the “Smart Manufacturing” project launched by the Department of Economic Development – Abu Dhabi.
The Department of Health is a good example of this trend, as it cooperates with international researchers and experts to ensure the safety of clinical trials of new vaccines in accordance with the highest international standards.
advanced infrastructure
Indeed, the UAE has established a sophisticated infrastructure that is owned and managed by subsidiaries of our portfolio. This important infrastructure operates at the national level, such as the Abu Dhabi Ports Group, which contributed 13.6% of the non-oil GDP growth of the Emirate of Abu Dhabi, and the industrial areas that include the city of Khalifa The industrial sector in Abu Dhabi “KIZAD”, in consolidating the foundations of the national drug system. Since 2020, the healthcare sector has already undergone a transformation, as turbulent events during the past two years have pushed the world’s governments towards more proactive spending, with expectations of an increase in the GDP of the eastern region Middle East and North Africa by 5.6% from 2019 levels.
Certainly, access to high-quality medicines and pharmaceutical preparations is essential to maintaining national health.
Comprehensive work system
Investments in world-class healthcare facilities and services have been strong for decades, and the current stage is the best way to increase investments in the pharmaceutical sector. While relying on the successes and experiences learned from recent events, we must direct our efforts towards creating a comprehensive work system in which the pharmaceutical value chain is integrated at all levels.
By taking advantage of the UAE’s position as a global contact center, its advanced infrastructure, and most importantly the strength of international partnerships that depend on it, in cooperation with the government, we can motivate sector leaders and investors to redefine the pharmaceutical sector at the regional level in the interest of future generations.
**Executive Director of the Health and Life Sciences Portfolio in the Holding Company (ADQ)