UAE boosts pharma sector with local manufacturing, R&D, and digital health drive

The UAE is spearheading the transformation of the Middle East's pharmaceutical sector, which is projected to reach $36 billion by 2028, according to the latest EMEA Life Sciences Industry Perspective and Cluster Report by JLL. With a compound annual growth rate of 7.7% between 2023 and 2028, the region is shifting from import-heavy models to innovation-driven, self-reliant ecosystems—led by the UAE's strategic investments in R&D, digital health, and local manufacturing.




Strategic Focus on R&D and Digital Health




JLL highlights the UAE's vision to become a regional centre for biopharma research and digital health as a key differentiator. Initiatives such as Dubai Science Park are nurturing an innovation ecosystem focused on genomics, personalised medicine, and biotech startups, while attracting global pharmaceutical companies seeking access to the region’s expanding market.

The report also points to digital health as a rapidly growing segment. Driven by government-led healthcare transformation programmes, the UAE has seen major investments in:

• Electronic health records
  
  
• Telemedicine
  
  
• AI-powered diagnostics
  
  
• Remote patient monitoring
  
  

Healthpoint Abu Dhabi and Dubai Healthcare City are cited as leading hubs for digital health innovation, drawing talent and investment in the sector.




Growing Manufacturing Capacity and Trade


Historically reliant on imports, the Gulf region's pharmaceutical industry is now embracing domestic manufacturing as a pathway to economic diversification and self-sufficiency. The UAE is emerging as a manufacturing powerhouse through strategic zones like:

• Jebel Ali Free Zone
  
  
• Dubai Industrial City
  
  

These industrial clusters combine the UAE’s location, strong logistics, and low-cost energy to attract manufacturers serving local and international markets. According to JLL, the UAE recorded $6.9 billion in pharmaceutical trade in 2023, with imports at $5.5 billion and exports at $1.4 billion—underscoring both strong domestic demand and the country’s expanding role as a regional export hub.




Academic Strength and Infrastructure Shifts



Another pillar of the UAE’s leadership is its academic performance. The United Arab Emirates University ranks among the top 250 globally in life sciences, according to Times Higher Education, placing it ahead of many regional peers and helping to fuel a skilled workforce pipeline for the pharma sector.

JLL also notes a shift in how lab space is developed across the Gulf. The region is moving away from publicly owned labs to investor-backed, flexible, and sustainable laboratory facilities. These purpose-built environments are designed to support:

• Groundbreaking research
  
  
• Advanced pharma manufacturing
  
  
• Innovation in digital health
  
  

“The GCC is building self-reliance by incubating innovative ventures and creating a collaborative environment to scale research,” said Mireille Azzam, Head of Strategic Consulting for JLL MEA in a public statement.
“The growing demand for purpose-built facilities will support groundbreaking research, advanced manufacturing, and drive digital transformation.”