DUBAI IN TALKS WITH ASIAN PHARMA FIRMS

▶ Generic drug producers from India, China and Korea, as well as Europe and US, discuss manufacturing in emirate

Dubai is in talks with drug makers from India, China and South Korea and from Europe and the US to establish manufacturing facilities in the emirate as part of its Industrial Strategy 2030, according to the chief executive of Tecom Group.

“Asia is a big [pharmaceutical manufacturing] market, especially India and you see some big manufacturers there,” said Amina Al Rustimani, the head of Dubai-based Tecom, which owns and operates specialised economic zones in the emirate.

“It is not a matter of speaking with manufacturers from Europe and the US only, there’s a focus on India and China as well ... There are a few in the pipeline already and we have very interesting activity happening in Dubai Science Park.”

Dubai aims to develop its industrial sector to further diversify its economy and add alternative revenue streams. According to government estimates, the sector is projected to increase Dubai’s total GDP by Dh165 billion by 2030 through the development of six industrial segments: aerospace; maritime; pharmaceuticals and medical equipment; aluminium and fabricated metals; food and beverages; and machinery and industrial equipment.

The strategy has gone into the implementation phase this year and ambitious targets include growing investment in research and development by Dh700 million by 2030, as well as creating 27,000 new high-value jobs and increasing the size of the industrial sector by Dh18bn – some Dh16bn of which will come through exports.

The drug maker Pharmax is on track to open a new manufacturing facility in Dubai’ Science Park, said Marwan Al Janahi, the executive director of the firm, which is a member of the Tecom Goup. Both Ms Al Rustimani and Mr Al Janahi, who are in charge of implementation for the pharma and medical sector strategy spoke

on the sidelines of workshop in Dubai yesterday, which was held to review the implementation progress of the strategy.

Sheikh Ahmed bin Saeed Al Maktoum, the second deputy chairman of the Executive Council and chairman of the Economic Development Sector committee, also attended the event.

“A lot of the Indian companies are leaders in generic drugs and the market for generics is just opening up in the GCC, mainly because of insurance,” Mr Al Janahi pointed out, adding that generics are a favoured area of development. In Europe and the US, Indian firms account for about 50 per cent of the overall market but that is not the case here, Mr Janahi said.

“Now governments [in this region] have a bigger push on the generics and there is a golden opportunity for manufacturers to come here,” he said.

Overall, the pharmaceutical market in the wider Middle East and North Africa (Mena) region is forecast to grow to US$33.4bn this year from $32.2bn last year, according to BMI Research, a unit of the Fitch Group.

There is a growing interest from the international pharma companies to set up manufacturing bases here, given Dubai’s position of being the commercial hub of the region, Ms Al Rustimani said.

“Considering the strong infrastructure Dubai has, it makes sense” for the companies to star set up base manufacturing bases in the emirates, she said, adding that the aim is to become the main manufacturing hub.

However, with its established infrastructure, Dubai could also be the centre of packaging and redistribution of medicines across the region and beyond.

GlaxoSmithKline (GSK), the UK’s biggest pharma company, is aiming to open a manufacturing facility in the UAE next year. The firm, which makes medicines such as Panadol and Augmentin, plans to manufacture three as yet undetermined drugs at the new facility in the UAE, Andrew Miles, the general manager for GSK in the Arabian Gulf region told last week.

“We believe the UAE still could be a very important strategic hub not only for the GCC but also for the broader region,” said Mr Miles. He declined to specify the GSK’s investment in the country.

On the regulatory side, Dubai is working with the Ministry of Health to facilitate establishment of the new businesses, she said.

“Idea now is how we can support them, help to expand their presence in the city and include other activities [in their businesses] such as manufacturing,” Ms Al Rustimanisaid. “Regulations, clustering them in one locations and providing them with required infrastructure are all part of the programme.”