The Middle East pharma market is set for significant expansion, estimated to reach $36 billion by 2028, driven by strong government support and a focus on innovation and local manufacturing. This growth trajectory underscores the Gulf Cooperation Council’s (GCC) commitment to enhancing its life sciences sector. According to the latest EMEA Life Sciences Industry Perspective and Cluster Report by JLL, the region’s pharmaceutical landscape is evolving rapidly, fueled by investment in infrastructure and digital advancements.
The growth potential for the Middle East pharma market is bolstered by substantial government investments in research facilities, manufacturing infrastructure, and digital innovations, predicting a compound annual growth rate (CAGR) of 7.7 percent beginning in 2023.
The report reveals that the GCC is strategically shifting its focus to fostering local capabilities. This policy aims to decrease dependence on imports while diversifying national economies and embedding sustainability into the life sciences sector.
A Surge in the Middle East Pharma Market
For the first time, the JLL report shines a spotlight on the Middle East, showing how it is becoming a core hub for life sciences innovation, including biopharma research, digital health solutions, and pharmaceutical manufacturing. This transformation is driving increased demand for specialized real estate tailored to evolving industry needs, such as flexible R&D spaces and cutting-edge manufacturing facilities.
Mireille Azzam, Head of Strategic Consulting at JLL Middle East and Africa (MEA), emphasized, “Innovation is critical for success in the life sciences industry, and the GCC is building self-reliance by incubating innovative ventures and creating a collaborative environment to scale research and expand its pool of skilled workforce.” She highlighted the emphasis on flexible lab designs and robust building systems, stating that these advancements are fostering a vibrant real estate market poised for scientific breakthroughs.
Azzam further noted, “The growing demand for purpose-built facilities will support groundbreaking research, advanced manufacturing, and drive digital transformation, laying a strong foundation for the future growth of the region’s evolving life sciences ecosystem.”
Key Accelerators of Industry Growth
Several fundamental factors are propelling the Middle East pharma market’s expansion, including:
- Government incentives for local drug manufacturing and biosimilar development.
- Increasing prevalence of chronic diseases leading to heightened demand for personalized medicine.
- A strong focus on telehealth, AI diagnostics, and remote patient monitoring.
- A surge in venture capital funding alongside AI-powered innovation throughout labs and distribution networks.
- Strategic geographic locations equipped with advanced logistics and energy-efficient infrastructure.
The report further delineates how major GCC nations are emerging as pivotal centers for life sciences clusters:
- Biopharma R&D: Dubai Science Park and Qatar Science and Technology Park serve as regional innovation hubs, while Saudi Arabia is enhancing its role in drug discovery through strategic partnerships.
- Digital Health: Dubai Healthcare City, Healthpoint in Abu Dhabi, and NEOM are at the forefront of advancements in AI and telehealth, fostering health-tech startups.
- Pharmaceutical Manufacturing: Facilities like Jebel Ali Free Zone and King Abdullah Economic City offer state-of-the-art industrial parks that cater to local production needs.
The transition from traditional public or owner-occupied laboratory spaces to investor-supplied real estate is addressing persistent shortages of lab space. JLL reports that the demand is now centered around next-generation lab facilities, robust architectural designs, and environmentally sustainable practices. This transition helps the GCC align with global leaders like the UK’s Golden Triangle, Johannesburg, and Singapore in the arena of life sciences innovation.
The region’s academic strength also significantly contributes to its potential, with institutions like King Saud University, Qatar University, and United Arab Emirates University gaining stature in global life sciences rankings. This highlights the role education plays in fostering the continued growth of the Middle East pharma market, bringing fresh talent and research capabilities to the forefront.