New Study: United Arab Emirates Pharmaceuticals & Healthcare Report Q2 2016

From: Fast Market Research, Inc.
Published: Thu Apr 28 2016

The sixth initiative of the UAE's medicine price reduction process will not significantly affect the country's pharmaceutical market. For drugmakers in the region, lower profit margins will be offset by increasing sales volumes. The UAE will continue to rely on imported medicines ; however , domestic manufacturing potential will expand over the long term. Fast-track approval ti mes, high affordability levels and growth of medical tourism will ensure that the UAE remains an attractive destination for multinational pharmaceutical companies.

Full Report Details at

Headline Expenditure Projections

Pharmaceuticals: AED10.77bn (USD2.93bn) in 2015 to AED11.70bn (USD3.19bn) in 2016; +8.6% in local currency terms and +8.7% US dollar terms. Forecast revised upwards slightly from last quarter.
Healthcare: AED54.56bn (USD14.85bn) in 2015 to AED57.81bn (USD15.75bn) in 2016; +6.0% in both local currency and US dollar terms. Forecast revised upwards from last quarter.

Risk/Reward Index

The UAE is one of the most rewarding markets for pharmaceutical and healthcare providers in the Middle East and African region. It has a fast-growing private healthcare sector, which brings with it demand for innovative and patented drugs. The UAE's relative political stability also contributes to the country's high regional score. In our Q216 Indices, the UAE scores 62.5, unchanged from last quarter's score, keeping it the most attractive market in our Middle East and African regional matrix followed closely by Saudi Arabia (59.7).

Latest Updates

In January 2016, the UAE's Health ministry cut the prices of 142 innovative drugs by up to 66% as part of the sixth initiative of 'Reduction in Medicine Prices'.

In January 2016, Aster DM Healthcare finalised its initial public offering after the opening of the group's largest UAE hospital - the first of five planned across the country.

In December 2015, the Dubai Health Authority (DHA) introduced standards for respiratory care in Dubai to unify management of respiratory diseases for patients.

In December 2015, UAE-based NeoBiocon collaborated with Novartis Middle East FZE to market the latter's vildagliptin products Jalra and Jalra-M in UAE after receiving approvals from the UAE's health ministry.

In November 2015, the DHA launched an innovative diabetes management protocol, supported by multinational drugmakers Novartis, Novo Nordisk and Merck Sharpe & Dohme.

BMI Economic View

The UAE's economic growth will slow over the coming quarters given lower oil prices, and the resultant cutback in government and private spending. The non-oil sector will become the major growth driver. We forecast real GDP growth of 3.4% in 2016 and 3.0% in 2017, from an estimated 4.0% in 2015.

BMI Political View

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