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United Arab Emirates Pharmaceuticals and Healthcare Report Q2 2008Published by: Business Monitor International Published: Apr. 22, 2008 - 92 Pages Table of Contents
AbstractThe United Arab Emirates (UAE) represents the most attractive market in the Middle East and Africa(MEA) region, despite not being the largest in size. Key factors driving the growth of the country’s pharmaceutical volumes and values in the coming years include increasing public and private wealth fuelled by the oil boom, strong and strengthening healthcare infrastructure, approvals of more medicines, a friendly regulatory environment and the absence of significant local competitors. Consequently, the UAE retains its pole position in BMI’s Business Environment Rankings for the Middle East and Africa (MEA) region for Q208. However, while the market is expected to top US$1.19bn in value in 2012, annual growth rates will be dependent on a number of developments. Despite its tough stance on pricing, the Ministry of Health is fearful of the low profits affecting the availability of drugs in the UAE. Nevertheless, in November 2007, the government announced its intention to ensure the availability of medicines in the local market by reducing their prices. The committee charged with devising a new system has suggested that the cost, insurance and freight (CIF) prices of all imports be reduced to bring them on a par with the lowest prices in the region. Such plans are set to attract protest within the industry. Pharmaceutical distributors are already demanding that the exchange rate of local tender against the euro be freed, which may result in a price increase of 18% for European imports. Authorities have indicated their willingness to adjust the rate on the condition that the factory - and not retail - price be affected, which would only result in an 8% increase. In the meantime, a study commissioned by the Brand Owners Protection Group (BPG) revealed a positive development in the battle against pharmaceutical counterfeits. While fake drugs continue to negatively impact sales value, companies’ image and employment opportunities, pharmaceuticals are the least affected industry sector in the country, with automobile spare parts being most at risk. Moreover, the planned creation of a federal centre to combat counterfeit trade in medicines, the first of its kind in the country, should help reduce this risk even further, despite the fact that penalties are still viewed as inadequate. In terms of the industry, local leader Julpar has recently unveiled an ambitious expansion programme, which includes the creation of more production units, both at home and abroad. In addition, the company has created a joint venture - a chain of Planet pharmacies - with private equity firm Global Investment House, to launch a chain of pharmacies. Similarly, leading Saudi Arabian pharmaceuticals distributor Banaja partnered UAE-based bank Ithmar Capital to create Pharma World Holdings, a pan-GCC logistics company operating out of the UAE. Pharma World Holdings plans to offer a more comprehensive service than traditional distribution firms, thus widening the ratings score with regard to market entry for foreign companies. Get Full Details About This Report >> |
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