United Arab Emirates Pharmaceuticals and Healthcare Report Q3 2011

The United Arab Emirates Pharmaceuticals and Healthcare Report provides industry professionals and strategists, corporate analysts, pharmaceutical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on United Arab Emirates's pharmaceuticals and healthcare industry.

BMI View: In 2010, the UAE pharmaceutical market reached a value of AED5.71bn (US$1.56bn). One of the key drivers of growth for the UAE pharmaceutical market is increased health expenditure. BMI expects that most of the value development will be realised in the prescription sector, boosted by rising population numbers and a changing diseases profile. In particular, the country is tackling an obesity and diabetes epidemic, which will also require long-term treatment of related conditions, such as increased blood pressure. The recently established single market of the six GCC states (Saudi Arabia, Oman, Qatar, Bahrain, the UAE and Kuwait) will also facilitate the placement of foreign products in the region.

Regional harmonisation should establish even stronger regional trade links and bring regulations closer in line with international norms, thereby boosting market development. Most major research-based firms have a long-standing presence in the UAE, either via contract manufacturing or local distribution arrangements. The UAE also has a thriving biotech and domestic pharmaceutical industry, which the government is keen to boost.

Headline Expenditure Projections

- Pharmaceuticals: AED5.71bn (US$1.56bn) in 2010 to AED6.13bn (US$1.67bn) in 2011; +7.3% in local currency terms and +7.3% in US dollar terms. Forecast up moderately from Q211 due to macroeconomic factors.
- Healthcare: AED32.93bn (US$8.97bn) in 2010 to AED36.16bn (US$9.85bn) in 2011; +9.8% in local currency terms and +9.8% in US dollar terms. Forecast unchanged from Q211.
- Medical devices: AED2.93bn (US$797mn) in 2010 to AED3.25bn (US$886mn) in 2011; +11.1% in local currency terms and +11.1% in US dollar terms. Forecast up marginally from Q211 due to analyst modification.

Business Environment Rating: The pharmaceutical rating for the UAE in Q311 remains unchanged at 63.6 out of 100, which is well above the average of 47.4 for the region. The country continues to occupy pole position in BMI’s Q311Business Environment Ratings for the Middle East and Africa region, with an unchanged Industry Rewards score of 57. Factors such as the population’s wealth and the rise in the incidence of lifestyle-related diseases in the Middle East are making pharmaceutical markets such as the UAE an attractive investment proposition.

Key Trends & Developments
- Provisional data issued by the World Intellectual Property Organisation (WIPO) has revealed that, international patent filings by Gulf countries under WIPO’s Patent Cooperation Treaty rose 14.56% to 118 in 2010, compared to 103 in 2009 and despite troubled economic conditions. Saudi Arabia had the most patent filings with 78, followed by the UAE with 29, Qatar with seven, and Oman with four; while Kuwait and Bahrain failed to register any patent filings last year.
- In March 2011, the Ministry of Health announced that the price of drugs used for treating chronic diseases will be reduced by up to 15%. The costs of 177 types of medicines in the UAE are currently much higher than in other countries in the region. In the UAE, a large section of the population suffers from chronic ailments such as Type 2 diabetes and cardiovascular diseases.
- Figures published by the ‘Beat Obesity Campaign’ have revealed that over 32% of schoolchildren in Dubai are overweight or obese. Meanwhile, a study conducted by the UAE Ministry of Health, the Centre for Disease Control in the US, and the World Health Organization has revealed that as per 2010 statistics, 54.7% of children living in the UAE between the ages of six and 16 were classed in the overweight and obese category. In 2009, however, the figure was 26%.
- Elsewhere, the Abu Dhabi Health Services Company announced that it had begun construction work on the new Mafraq Hospital, estimated at a cost AED2.2bn (US$598mn). The new Mafraq premises will be located adjacent to the existing Mafraq facility in Abu Dhabi. The new hospital, which will contain 739 beds and provide 139 outpatient clinics, will also serve as a centre of excellence in thoracic and orthopaedic surgery, and burns treatment within the Emirate.
- In other developments, a new authority was unveiled to oversee the functions of the Dubai Healthcare City, as well as to provide a boost to the Emirate as a hub for medical tourism. The Dubai Healthcare City Authority has been established as part of plans to attract a whole spectrum of complementary industries, ranging from drug manufacturers, to research laboratories and pharmacies. The new authority also hopes to attract leading specialists and healthcare professionals to the Emirate.

BMI Economic View: Favourable macroeconomic factors such as increasing fiscal expenditure and real GDP growth values are expected to facilitate the expansion of the UAE’s pharmaceutical market. In 2010, fiscal expenditure reached a value of AED298.64bn; while real GDP growth values reached a figure of 2.93%. Besides the country’s overall wealth, an important factor driving sector development is the increase in foreign direct investment. Pharmaceutical majors such as GlaxoSmithKline, Novartis, Abbott Laboratories, Pfizer and Johnson & Johnson have recently expanded their operations in the country, attracted by major developments such as DuBiotech and the Dubai Healthcare City.

BMI Political View: The government of the UAE is committed to expanding access to medical services in general and pharmaceuticals in particular. The country boasts strong and high-quality healthcare provision, with the government promising further investment in such resources. To this end, the UAE is building multiple healthcare facilities, expecting demand for healthcare to more than double by 2025. SHOW LESS READ MORE >

Executive Summary

SWOT Analysis
United Arab Emirates Pharmaceuticals And Healthcare Industry SWOT
United Arab Emirates Political SWOT
United Arab Emirates Economic SWOT
United Arab Emirates Business Environment SWOT

Pharmaceutical Business Environment Ratings

Table: Middle East And Africa Pharmaceutical Business Environment Ratings for Q311
Rewards
Risks

UAE – Market Summary

Regulatory Environment
Pharmacovigilance
Recent Regulatory Developments
Pharmaceutical Advertising
Intellectual Property Regime
Counterfeit Medicines
Pricing And Reimbursement Regime
Recent Pricing and Reimbursement Developments
Regional Harmonisation
Free Trade Agreements
Industry Trends and Developments
Epidemiology
Recent Public Health Developments
Non-Communicable Disease
Communicable Disease
Healthcare Sector
Healthcare Staff
Hospital Sector Developments
Healthcare Sector Reforms
Recent Healthcare Sector Developments
Healthcare Sector Advertising
Health Insurance

Recent Health Insurance Industry Developments

Medical Tourism
Research and Development
DuBiotech

Medical Devices
Recent Developments in the Medical Devices Market
Industry Forecast Scenario
Overall Market Forecast
Table: Pharmaceutical Sales Indicators 2007-2015
Key Growth Factors – Industry
Table: Healthcare Expenditure Indicators 2007-2015
Table: Government Healthcare Expenditure Indicators 2007-2015
Table: Private Healthcare Expenditure Indicators 2007-2015

Key Growth Factors – Macroeconomic

Table: United Arab Emirates – Economic Activity
Prescription Drug Market Forecast
Table: Prescription Drug Sales Indicators 2007-2015
Patented Drug Market Forecast
Table: Patented Drug Market Indicators 2007-2015
Generic Drug Market Forecast
Table: Generic Drug Sales Indicators 2007-2015
OTC Medicine Market Forecast
Table: OTC Medicine Sales Indicators 2007-2015
Medical Device Market Forecast
Table: Medical Devices Sales Indicators 2007-2015
Pharmaceutical Trade Forecast
Table: Exports and Imports Indicators 2007-2015
Other Healthcare Forecasts
Key Risks To BMI’s Forecast Scenario
Competitive Landscape
Pharmaceutical Industry
Table: United Arab Emirates (UAE) – Top Five Multinational Pharmaceutical Companies (2010)
Domestic Pharmaceutical Sector
Foreign Pharmaceutical Sector
Recent Company Developments
Pharmaceutical Distribution and Retail
Recent Developments in Pharmaceutical Distribution and Retail

Company Profiles
Gulf Pharmaceutical Industries (Julphar)
Globalpharma
Modern Pharmaceutical Company (MPC)
Neopharma
Medpharma
GlaxoSmithKline (GSK)
Pfizer
Novartis
Johnson & Johnson (J&J)
Sanofi-Aventis
Abbott Laboratories
Merck & Co

Country Snapshot: UAE Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education And Healthcare
Table: Education, 2002-2005
Table: Vital Statistics, 2005-2030
Section 3: Labour Market And Spending Power
Table: Employment Indicators, 2000-2004
Table: Consumer Expenditure, 2000-2012 (US$)
Glossary

BMI Methodology

How We Generate Our Pharmaceutical Industry Forecasts
Pharmaceuticals Business Environment Ratings
Risk/Reward Ratings Methodology
Ratings Overview
Table: Pharmaceutical Business Environment Indicators
Weighting
Table: Weighting Of Components
Sources

-Gulf Pharmaceutical Industries (Julphar)
-Globalpharma
-Modern Pharmaceutical Company (MPC)
-Neopharma
-Medpharma
-GlaxoSmithKline (GSK)
-Pfizer
-Novartis
-Johnson & Johnson (J&J)
-Sanofi-Aventis
-Abbott Laboratories
-Merck & Co