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29 March 2024

UAE drug firms told to target developing countries

Julfar recently pumped more than Dh500 million to build first factory for insulin which is scheduled to begin production the 2011-end (FILE)

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By Staff

The UAE pharmaceutical industry is still nascent and local players currently hold around 30 per cent of the domestic drug market. But the industry needs more investments in order to compete better with global players, according to industry players.

Total investments by local players have amounted to Dh10 billion ($ 2.7 billion) and this industry needs to pump more investments, where the global trend today is to focus on the pharmaceutical factories. The UAE pharmaceutical companies export more than 700 products to over 60 countries, according to Arabic daily Al Bayan.

Dr. Ayman Al Sahely, Director-General of the Gulf Industrial Pharmaceutical, said: “The investments by local players are weak and make up not more than, at best, one per cent of the investments by major international companies such as Pfizer - which will increase the size of investments for the current year to $ 300 billion. It has a number of factories in the region, with each of them estimated at about $ 4 billion.”

He said there are eight leading manufacturer companies of medicines in the UAE with investments exceeding $2.64 billion, and produces more than 700 different medicine and dozens of other medical solutions.

The four largest UAE companies - Julfar, Global Pharma, New Pharma and Mid Pharma - produce five billion tablets and two billion beverage containers annually.

The Gulf Pharmaceutical Industries (Julfar), the largest and oldest of these companies, has all of its 10 factories are located in Ras Al Khaima and produces three billion pills and 900 million bottles of syrup. Around 10 per cent of its products are distributed and consumed in the UAE and the rest are exported to 40 countries.

He said the Dubai-based Global Pharma - a subsidiary of Dubai Investments – is the second largest company in the UAE, producing 60 medicines and distributes more than 30 per cent of its production in the UAE and 70 per cent abroad.

These companies produce varied drugs to help treat digestive systems, diabetes, cardiovascular and arthritis diseases. These drugs are distributed at 1700 private and governmental pharmacies across the UAE.

According To Dr. Al Sahely national pharmaceutical industry is currently at a crossroads; where the global trend today focuses on the establishment of specialized pharmaceutical factories, particularly the biotechnological medicines, vaccines and chronic diseases.

“The UAE is in an urgent need to establish such factories that require huge investments, knowing the characteristics of the pharmaceutical industry, the whole world has pumped huge investments in to it.
"Investments in both the production and processing factories, the selection of raw materials, excellent human resources, good marketing, research and development – all these areas need a large amount of funding,” he said.

He said international companies have been for years controlling the UAE and regional drug markets and have made big profits, especially after they established production lines of their medicines to treat common diseases in the Gulf region and the Middle East.

Julfar recently pumped more than Dh500 million to build first factory for insulin which is scheduled to begin production the 2011-end.

He said the UAE firms should not focus on local market and rather follow Julfar’s policy which exports 90 per cent of its drugs by targeting developing countries.

“The UAE medicine gained confidence and big sales in the GCC, Middle East, South-East Asia, Africa and Latin America. These markets are still in big need of drugs produced by UAE pharmaceutical factories.”

BR Shetty, CEO and Director General of the New Pharma, said: “The UAE has become a big name in the pharmaceutical market after international companies exploited it for many years, especially American and European.”

He said “the New Pharma factory, which is now one of the biggest pharmaceutical factories in Abu Dhabi with investments reaching Dh250 million, produces currently 100 various drugs and expects the number of drugs being produced at the factory  will reach about 144 items during the year.

He said the company is planning new investments of Dh250 million to boost productivity following large demand for medicines it is producing in its facility.

Shetty said the biggest problem facing the pharmaceutical industry in the UAE is the volatility of exchange rates of foreign currencies, particularly the euro, hence the profit margin of the national industries have declined slightly due to rise in single currency.

Yanouf Ali Salem, vice president and general manager of Mid Pharma, also highlighted the low value of investments in the industry.