While all eyes are on China and India as the next big players of the pharma and biopharma world, there is a "new kid on the
block": the Middle East states. Massive growth has been forecast for the pharmaceutical and biotechnology industry for the
Gulf Cooperation Council (GCC) nations; that is, Saudi Arabia, United Arab Emirates (UAE), Oman, Qatar, Bahrain and Kuwait.
Currently valued at more than US$12 billion, the pharmaceutical market in this region is expected to develop at a rate of
10–15% annually.
But how big a competitor are they? Well, on the plus side, the GCC countries count with the help of their national governments,
who are offering incentives to overseas companies, such as 100% ownership and tax benefits, coupled with enormous wealth in
many cases, political stability, a move towards liberalization of their economies and the introduction of mass health insurance.
On the minus side, their small populations (except from Saudi Arabia and UAE) make them less attractive to manufacturers,
who may be looking to invest in more established, bigger markets.
With China and India still dominating the race and Europe and the US having come to a halt in growth, more than 450 pharma
companies have started operations in the GCC region. Experts are convinced that this number is set to increase. And quickly.
In the meantime, all we can do is wait and see...
