March 22, 2010 -
PRLog -- In November 2009 the UAE government announced that an independent federal authority will be established to regulate the quality and safety of food and drugs entering the country. BMI believes that the successful implementation of this body - essentially a UAE version of the US Food and Drug Administration (FDA) - will be attractive to multinational drugmakers operating in the country. We expect the total drug market to increase in value from US$1.31bn in 2008 to US$1.5bn by 2009. Thereafter, we expect the drug market to reach US$2.65bn by 2014, representing a compound annual growth rate (CAGR) of 21% in US dollar terms. Our extended 10-year forecast indicates that the market will reach US$3.4bn by 2019, showing a slow CAGR of 5.2% from 2014 onwards. We believe that as the second largest pharmaceutical market in the Gulf Co-operation Council (GCC) region after Saudi Arabia, the UAE's introduction of a proper regulatory body is a wise move. Saudi Arabia already has the SFDA, which affiliates testing laboratories for drugs and food products. We note that recently the fluctuations in medicine prices in the UAE have led to greater pressure on the government to import and manufacture more generic drugs. This is yet to happen due to the lack of testing facilities in the country. Bioequivalence and other quality control analyses are not consistently carried out for foreign medicines entering the UAE. Instead, medicines come from the EU or US where strict regulations are already in force. Healthcare sector advertising in the GCC region during January-September 2009 was worth approximately US$162mn, according to the findings of UAE-based research group the Pan Arab Research Centre. The group has revealed that total 2009 spending on advertising for the industry could reach US$215mn. BMI believes that since the member states of the GCC are undergoing healthcare reform or promoting medical tourism (in the more developed countries), the increased spending on advertising is to be expected. The creation of the Healthcare City (HC) in Dubai has yet to fulfil its potential for attracting international patients. BMI believes the Dubai government has to promote its medical tourism benefits more widely in order to gain considerably from its substantial investment. At present, the HC has 80 English-speaking clinics, with highly qualified doctors, cheaper prices per procedure than the US, no waiting times and the close proximity of holiday areas already renowned for luxury and relaxation. Construction of the second phase of the HC's complex will include spas and other 'wellness' facilities. The completed complex will form the largest medical tourism centre between Asia and Europe.
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