Today's Edition
KHALED AL KHAWALDEH (ABU DHABI)
The Gulf region’s life sciences sector is undergoing a transformation, and the UAE is at the forefront of what is expected to become a $36 billion pharmaceutical market in the Middle East by 2028, according to the latest EMEA Life Sciences Industry Perspective and Cluster Report by JLL, a leading global commercial real estate and investment management company.
With a projected compound annual average growth rate of 7.7% between 2023 and 2028, the region’s pharmaceutical industry is rapidly shifting from import dependence to innovation-driven self-reliance. In this transformation, the UAE’s early and substantial investment in research and development, advanced manufacturing, and digital health solutions is setting it apart from its regional peers, according to JLL.
Driving much of the UAE’s leadership in the sector is its clear strategy to become a centre of excellence for biopharma research and digital health, two areas identified by JLL as key to the region’s life sciences future.
The report points to Dubai Science Park as a prime example of how the UAE has created an innovation ecosystem supporting personalised medicine, genomics research, and biotech startups. It says such initiatives are helping the UAE become a magnet for global pharmaceutical companies looking to access the region’s growing market.
Digital health has also become a standout growth area, “propelled by governmental initiatives prioritising digital transformation in healthcare for enhanced accessibility, efficiency, and patient outcomes”, the report says.
Investments in electronic health records, telemedicine, AI-powered diagnostics, and remote patient monitoring are reshaping the region’s healthcare delivery. UAE hubs like Healthpoint Abu Dhabi and Dubai Healthcare City were cited among the leaders in fostering innovation and attracting talent and investment in digital health solutions.
While the Gulf region’s pharmaceutical industry has been known to rely on imports, the report notes that government policies across the region are now pushing to expand local production.
Besides reducing import reliance, governmental industrialisation strategies aim to “create jobs, and diversify economies through investments in industrial parks and incentives for manufacturers”, it adds.
According to JLL, the UAE - with hubs like Jebel Ali Free Zone and Dubai Industrial City - has emerged as a regional leader in pharmaceutical manufacturing capacity. These industrial clusters leverage the region’s strategic location, advanced logistics, and low-cost energy to attract manufacturers looking to serve both local and export markets.
According to the report, the UAE accounted for $6.9 billion in pharmaceutical products trade in 2023. With imports at $5.5 billion and exports at $1.4 billion, this trade volume reflects the strong local demand in the country and its growing role as an export hub for pharmaceuticals in the wider Middle East and Africa.
Another pillar of the UAE’s leadership is the strength of its academic institutions. The United Arab Emirates University is ranked among the top 250 globally in life sciences, according to Times Higher Education, placing it ahead of most regional peers.
As the industry matures, JLL highlights a major shift in how lab space is developed in the region. Moving away from public or owner-occupied labs, the Gulf region is seeing an increase in investor-supplied lab spaces with flexible layouts, resilient building systems, and sustainable designs.
“The GCC is building self-reliance by incubating innovative ventures and creating a collaborative environment to scale research. The growing demand for purpose-built facilities will support groundbreaking research, advanced manufacturing, and drive digital transformation,” said Mireille Azzam, Head of Strategic Consulting for JLL MEA.
