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UAE emerges as global pharmaceutical hub with market poised to hit $8 billion
Artificial Intelligence is transforming drug safety monitoring, clinical trials, and advanced therapy readiness
- PUBLISHED: Mon 7 Apr 2025, 4:43 PM
The UAE's pharmaceutical sector is witnessing robust growth, with the market valued at $4.15 billion and projected to double by 2033.
That's according to Dr Fatima Al Kaabi, Director General, Emirates Drug Establishment, who spoke to Khaleej Times on Monday on the sidelines of the World Local Production Forum 2025 in Abu Dhabi.
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She explained that, driven by innovation, regulatory excellence, and increased investment in local manufacturing, the industry also benefits from expanded healthcare policies and mandatory insurance schemes, significantly improving access to essential medicines.
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Partnerships with global pharmaceutical companies and improvements in local manufacturing capabilities are driving the growth of the country’s pharmaceutical market, enhancing accessibility and ensuring high-quality care.
UAE an attractive hub
On the UAE's appeal as a hub for global pharmaceutical and biotech companies, Al Kaabi added, "There is a strong economic foundation and a great sense of stability and safety here. These are crucial factors… they create the ideal conditions for someone to put down roots, invest, grow, and possibly expand further.”
"The UAE has headquarters of some of the top 15 pharmaceutical companies in the world. Their presence here in the UAE is no accident; it’s a result of choosing the right environment for investment.”
Al Kaabi noted while some may argue that local demand is limited due to the size of the country but she highlighted that the potential lies not in the geographical size but in the robust export strength, strategic relationships, trade agreements, and policies.
"These factors make the UAE a hub for global business. As these companies continue to grow, we are also seeing a shift from purely transactional operations to deeper involvement in the community — specifically in research and development, building local capabilities, and collaborating with local manufacturers to produce goods within the country."
She further emphasised the positive impact of expanded healthcare policies and mandatory insurance schemes on enhancing access to essential medicines.
"From a regulatory standpoint, our aim is to act more as facilitators and enablers — even catalysts — to accelerate progress. In times of disease outbreaks or pandemics, speed becomes a critical challenge. That’s why it’s essential for us to have systems primed and ready in advance, so we can respond swiftly and maintain as much control as possible during such situations.”
Al Kaabi also pointed out that governments and private sector entities are increasingly turning to collaborative frameworks to meet growing demands in a more efficient and sustainable manner. One model that has gained significant traction is the Public-Private Partnership (PPP).
“Once people saw the successful examples here in the UAE, there’s been a strong push toward adopting the Public-Private Partnership (PPP) model. From a business perspective, it’s creating jobs and nurturing talent. From a sustainability standpoint, it’s more viable than many other models. In terms of growth, it offers a solid foundation for long-term development.”
AI influencing the pharmaceutical sector
Meanwhile, Al Kaabi emphasised how artificial intelligence is playing a pivotal role in reshaping the UAE’s pharmaceutical and healthcare landscape.
She noted from strengthening Covid-related pharmacovigilance systems (processes designed to monitor the safety of pharmaceutical products, particularly after they have been approved for use) to accelerating clinical trials and designing predictive models for breakthrough therapies, AI is enabling smarter data capture, faster decision-making, and more agile policy formation — ultimately ensuring safer, more effective care for all.
“We’re using AI not just to collect smarter data, but to turn that data into immediate, actionable outcomes — from flagging real-time safety signals to cutting clinical trial timelines from months to weeks. And as advanced therapies like nano and stem cell treatments emerge, AI will help us build the right regulatory frameworks to ensure safety, quality, and readiness for the future,” added Al Kaabi.
