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GCC pharmaceuticals market tops $30 billion as investment drives local production
JLL says sovereign funding, regulatory reforms and specialised clusters are accelerating pharmaceutical manufacturing, biotechnology and clinical research across the region
- PUBLISHED: Mon 3 Aug 2026, 6:04 PM
The GCC’s pharmaceutical market exceeded $30 billion in 2025 and is growing at about 7.5 per cent annually, as governments accelerate investment in local manufacturing, biotechnology and healthcare research, according to a new report by JLL.
The consultancy said the region’s life sciences sector was shifting from being primarily an importer of medicines to an innovation-led producer, supported by sovereign capital, national industrial strategies and efforts to strengthen healthcare security.
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Gulf biotechnology investment exceeded $12 billion between 2020 and 2025, backed by government funding programmes, tax incentives and measures to attract international pharmaceutical companies, the report found.
The regional biotechnology market is projected to reach $2.6 billion by 2028, while the market for locally produced generic medicines is expected to grow to around $14.7 billion by 2032. Biosimilars are expanding at between 15 and 20 per cent a year, supported by new production plants and cold-chain logistics.
UAE and Saudi Arabia lead expansion
JLL said government initiatives such as Saudi Arabia’s Vision 2030 and the UAE’s Operation 300B were supporting investment in pharmaceutical and biotechnology manufacturing.
The UAE initiative has helped drive the opening of advanced pharmaceutical facilities in Abu Dhabi and Dubai, with a focus on generic drugs, complex biologics and contract manufacturing services for multinational companies.
Saudi Arabia has also streamlined approvals for locally manufactured medicines and pursued partnerships with global pharmaceutical groups to establish research and production hubs.
Sandeep Sinha, Head of Healthcare and Life Sciences Consulting for the Middle East and Africa at JLL, said the GCC was entering a new phase of healthcare development.
“As the industry evolves from conventional drug formulation to the production of high-value biologics and advanced therapies, governments are investing in specialised life sciences clusters, advanced manufacturing capabilities and world-class logistics infrastructure,” he said.
He added that these investments were positioning the GCC as an integrated hub connected to global pharmaceutical supply chains while strengthening long-term healthcare resilience.
Specialised research and manufacturing hubs
JLL’s analysis identified Dubai and Riyadh as regional all-rounders with strong research credentials and manufacturing capabilities.
Dubai benefits from pharmaceutical production, research institutions and major logistics infrastructure, including Dubai Science Park and Jebel Ali Port. Riyadh combines manufacturing growth with academic research and an expanding pharmaceutical supply chain.
Abu Dhabi is emerging as a specialist hub for biotechnology, genomic sequencing and precision medicine, while Doha is strengthening its position in genomics and specialised clinical research.
Oman is expanding pharmaceutical manufacturing capacity, with 18 production facilities under construction in addition to 20 already operating.
Manama aims to develop as a pharmaceutical manufacturing and logistics centre, while Kuwait City is focusing on importing advanced life sciences technologies and developing expertise in digital health, personalised medicine and gene therapies.
Clinical trials offer investment opportunity
The report said rising chronic diseases and demand for specialised treatment were creating opportunities beyond generic medicines, including personalised healthcare, genomics, vaccines, advanced biologics and cell and gene therapies.
Artificial intelligence is also attracting growing attention in drug discovery.
However, JLL identified a shortage of dedicated facilities for large-scale clinical trials and biotechnology research, as well as limited production capacity for biologics, biosimilars, vaccines and complex medicines.
The GCC’s population, which includes more than 200 nationalities, provides a diverse base for international clinical trials, particularly in genomics and oncology, the report said.
JLL said the gap represented an opportunity for investors and developers to establish specialised research laboratories, clinical trial facilities and advanced manufacturing hubs across the region.
