Potential and Challenges of Expanding Pharma Business in UAE

The healthcare market in the Middle East has a growth rate of 10%, which is double the healthcare market globally. The primary countries that dominate the market in this region are Saudi Arabia, Iran, Egypt, and UAE. These countries cover more than 85% of the Middle East Market. In the healthcare sector, the pharmaceutical sector is one of the primary focus due to increased demand for drugs. 

According to statistics, the UAE’s pharmaceutical industry is expected to be worth $4.7 billion (17.2 billion AED). The market size will be three times that of the USA market. Resources mention that the UAE is planning to expand its pharmaceutical capacity to produce 2500 more medicines, including both finished products and active ingredients. Exports are also expected to increase to $297 by 2025, 18% more than $251 in 2020. 

With the increase in demand for quality patient care, the UAE aims to make its pharmaceutical sector strong through extensive research and government initiatives. Mohammed Saeed Al Rabbani, General Manager of Dubai Investments Industries and Director of Global Pharma, while talking about the pharmaceutical growth, says: 

“Pharmaceutical manufacturing is a lucrative industry and of high value to the UAE economy for a number of reasons. One of the primary reasons lies in promoting self-sufficiency, which is crucial for reducing the country’s heavy reliance on importing a multitude of medical products from overseas.” 

With the huge potential for growth and success of the pharmaceutical business in Middle Eastern countries, there are a few challenges, too. Here, we’ll discuss them briefly so you prepare yourself accordingly before stepping into the pharmaceutical business in the Middle East. 

Challenges of Expanding Pharmaceutical Business in the Middle East 

Investment and Expertise for the Local Production Facilities 

Governments in the Middle East are actively pushing for localization of drug manufacturing. This means companies may need to set up production facilities or partner with local manufacturers to gain market access. While this presents an opportunity for long-term growth, the initial investment and technical expertise required can be challenging.

Limited Local Manufacturing Capabilities

While some Middle Eastern countries are actively promoting local drug manufacturing, the region currently relies heavily on imports. This dependence creates logistical challenges and potential supply chain disruptions. Companies may need to consider partnerships with local manufacturers or establish their own production facilities to ensure a reliable supply chain.

Price Versus Quality

Balancing affordability with quality is a constant challenge. Governments prioritize keeping drug prices low, but this can reduce profit margins for companies used to higher prices in other markets. Additionally, competition from established manufacturers further intensifies the pressure on pricing.

The Counterfeit Drugs Threat

Counterfeit drugs are all fake medicines that aren’t produced by genuine manufacturers and are a copy of the original product without any rights or authority. This not only poses a health risk to patients but also damages trust in legitimate pharmaceutical companies. Companies need active anti-counterfeiting measures to protect their brand identity and ensure patient safety.

Strong Preference for Established Brands

The market in this region favors established brands with proven records. Startups may struggle for recognition against these competitors. Building brand awareness and trust takes time and significant investment in marketing and education for healthcare professionals and patients.

Connect With Morphosis to Expand Your Pharmaceutical Business in the UAE 

With a lot of competition, it can be challenging to expand your pharmaceutical business in the continuously evolving pharmaceutical world of the UAE.

Morphosis is a UAE-based marketing firm that was founded by two industry veterans, Muhammad Usman Qaiser and Rija Nawab. They understand both the UAE’s and Pakistan’s pharmaceutical industry, and any advice you get from them to expand your pharmaceutical business will be wrapped up in years of experience in the industry.

No matter if you’re a startup or an established company, Morphosis is there to serve you at any stage. They understand the unique challenges and opportunities offered by the UAE’s pharmaceutical market and will help you at every step, from understanding regulatory frameworks to consumer behavior and crafting graphic designs or arranging impactful events to ensure your brand gets recognition.