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UAE’s pharmaceutical market projected to grow from $3 billion to $5.7 billion by 2020

pharmafile | October 10, 2016 | News story | Manufacturing and Production Abu Dhabi, Dubai, GlobalData, United Arab Emires, growth, medical tourism, pharmaceutical market 

United Arab Emirates’ pharmaceutical market is set for growth of 13% annually to reach $5.7 billion by 2020, up from just over $3 billion in 2015. GlobalData has delivered this growth figure based on “increased healthcare expenditure, mandatory health insurance, and growing medical tourism”.

The Dubai Health Authority has been working on developing the medical tourism sector and the UAE is becoming popular as a medical tourism destination due to the comparatively low costs, English-speaking medical staff, and low waiting times. The aim is to potentially attract 1.3 million medical tourists annually by 2021. The revenue generated by medical tourism is expected to grow by 13% annually continually over the next five years.

The fact that the UAE boasts a stable political and economic environment also helps promote growth within the pharmaceutical market. The government of UAE has encouraged the involvement of the private sector and investment in healthcare. With this in mind, the government set up Dubai Healthcare City and Dubai Science Park within special zones that provide 100% tax redemption and foreign ownership.

Despite these positive developments for international and domestic pharmaceutical companies, there still remains the issue of counterfeit drugs. With as much as 35% of the drug market in the Middle East being illicit, according to the World Health Organisation, the pharmaceutical market is being constantly undermined by the illegal trade of drugs, undermining profits and trust in pharmaceutical industry. The full report, from GlobalData, can be found here.

Ben Hargreaves

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