The UAE is positioning itself as a global life sciences hub, says Dr Gireesh Kumar, Associate Partner, Healthcare Advisory Services, Knight Frank
As part of ‘We the UAE 2031’, the United Arab Emirates is accelerating growth in biotechnology, pharmaceuticals, and medical technology by leveraging its strategic location and investing in innovation, research, and infrastructure.
Key initiatives include:
• Development of life science clusters and specialised vaccine production facilities
• Expansion of biosimilar manufacturing and a stronger focus on chronic disease and rare disease management
• Attracting major pharmaceutical and medical device companies to establish local operations
To support these efforts, the newly formed Emirates Drug Establishment (EDE) will oversee the regulation and management of pharmaceutical products, biologics, medical devices, and food supplements. Additionally, EDE will develop a national framework for pharmaceutical research, clinical studies, and trials, ensuring alignment with global best practices.
These strategic initiatives mark a significant step toward healthcare innovation, enhancing the UAE’s role as a key player in the global life sciences industry.
Key highlights in the sector
• Growing Biotechnology Presence: Abu Dhabi and Dubai are emerging as key biotechnology centres, with dedicated life science clusters and cutting-edge research facilities.
• Operation 300Bn Initiative: The Ministry of Industry and Advanced Technology (MoIAT) has launched the UAE’s largest industrial strategy, allocating AED 300 billion over five years to key sectors, including healthcare. This funding supports pharmaceuticals, biotechnology, medical devices, and hospital services.
• GCC Biotechnology Market Growth: According to published sources, the GCC biotechnology market is projected to reach $2.6 billion by 2028, with UAE and Saudi Arabia leading the sector.
• Expanding Genomics Industry: The MENA genomics market is expected to grow to $1.2 billion by 2027, with UAE and Saudi Arabia capturing more than 60 per cent of the market.
Developing a world class life science park
To develop a world-class life sciences park comparable to established hubs such as Boston, Basel, San Francisco or Singapore, several critical elements must be in place:
1.Local Human Capital
o A thriving life sciences ecosystem requires a strong talent pipeline of researchers, university students, and technicians, supported by early investments in academic programmes, research partnerships, and collaborations with global institutes.
2. Hospital & Clinical Research Infrastructure
o A well-developed hospital network with advanced clinical research capabilities is vital for supporting trials, translational research, and real-world evidence generation.
3. Funding & Investment in Innovation
o Biotechnology and life sciences require long-term capital to fund research, development, and commercialisation, with government funding and private sector participation playing a crucial role in sustaining the ecosystem.
4. Business Environment & Regulatory Support
o Having an integrated ecosystem that connects business services, research institutions, hospitals, investment firms, and corporates within proximity fosters collaboration and drives innovation.
5. Infrastructure & Cost Considerations
o While existing life sciences clusters provide offices, labs, and warehouses, the rising cost of living and operations must be factored into future planning.
o Shared lab spaces could be an effective solution, enabling startups and researchers to access high-end facilities without bearing the full financial burden.
o Given the climate and cost of living, developing mixed-use communities within these hubs, including residential options, could enhance the attractiveness for global talent.
Assessing the UAE’s life sciences cluster: strengths and challenges
Life Science Cluster
The life sciences sector in the UAE is predominantly centered around Dubai Healthcare City (DHCC), Dubai Science Park (DSP), and Masdar City. While the sector is witnessing considerable growth, it may take some time before it becomes as established as the mature markets.
1. Talent Pool
Strengths:
• Educational Institutions: The UAE has approximately 15 higher education institutions offering specialised healthcare and life sciences courses. Masdar City in Abu Dhabi is home to leading institutions such as MBZUAI (Mohamed Bin Zayed University of Artificial Intelligence) and Masdar Institute of Science and Technology, while DHCC hosts Mohammed Bin Rashid University of Medicine and Health Sciences (MBRU). These institutions have dedicated R&D department focusing on chronic disease management, OMICS, precision medicine, public & mental health and more.
• Strategic Location & Infrastructure: Dubai’s excellent global connectivity and specialised free zones for healthcare and biotechnology attracts skilled professionals.
Challenges:
• Limited Local Research Talent: The UAE has a limited, well-established ecosystem for homegrown specialised workforce such as biotech researchers, pharmaceutical scientists, and biotech entrepreneurs, and the career pathway may not be fully optimised and streamlined as in mature markets.
2. R&D
Strengths:
• Emerging Research Collaborations: Universities and hospitals are increasingly collaborating with multinational corporations for R&D. For example, Burjeel Medical City has partnered with international pharmacologic companies in Denmark and USA for research on rare blood disorders. Beyond these, the UAE is also home to dedicated standalone research facilities, such as Abu Dhabi Stem Cells Center (ADSCC), which specialises in stem cell therapy, regenerative medicine and bone marrow transplants.
• Government Commitment: R&D is a key priority, with institutions such as M42 in Abu Dhabi enhancing their research capabilities, especially in areas such as multi-omics, precision medicine and therapeutics.
Challenges:
• Limited Clinical Research Facilities: There is a shortage of dedicated facilities for large-scale clinical trials and biotech R&D. Only 8 out of 168 inpatient facilities in the UAE have on-site research centres which include SSMC, Rashid Hospital and King’s College Hospital. Within these 8 facilities, only 3 are private, highlighting the challenges private entities face in securing funding for R&D.
• Regulatory Barriers: The regulatory framework for clinical trials is still evolving, creating challenges for largescale biotech research when compared to countries such as Singapore, which offer fast-track approvals and have a robust regulatory framework.
3. Funding Environment
Strengths:
• Existing Investment Initiatives: Abu Dhabi’s ADQ Life Sciences Fund and government investments in AI-driven health tech and medical tourism are fostering growth.
Challenges:
• Investor Preferences: Investors in the UAE tend to favour sectors with quicker returns, such as real estate, AI, and logistics, over high-risk, long-term biotech investments. Hence, there is limited dedicated VC focusing on life sciences. Local biotech startups struggle to scale without strong funding incentives and prefer to relocate to a more established ecosystem.
4. Business Environment & Infrastructure
Strengths:
• Flexible Office & Lab Space Options: Companies have access to various space options, including flexi-desks, full offices, fitted lab facilities, built-to suit facilities, and warehouses.
• Attractive Regional Headquarters Location: The UAE’s tax exemption law, 100 per cent foreign ownership, logistics hub and access to regional markets makes it an appealing base for regional sales and distribution operations.
Challenges:
• Limited R&D Presence: Many companies within the life sciences clusters operate as commercial or representative offices, with fewer entities focused on R&D.
• Lab Space vs. Office Space Pricing: There is minimal price differentiation between fitted office spaces and lab spaces in the UAE market, whereas international benchmarks indicate a premium of 15–35 per cent for lab spaces. Without sufficient incentives, investment demand to develop such facilities is likely to remain limited.
Conclusion
The UAE has made significant strides in developing a world-class life sciences ecosystem, driven by strong government initiatives, investment in R&D, and strategic infrastructure development. However, for the country to achieve global leadership in biotechnology and pharmaceuticals, it must address challenges related to research talent, clinical trial infrastructure, and long-term investment in innovation. By fostering public-private partnerships, strengthening regulatory frameworks, and enhancing research capabilities, the UAE is well positioned to become a leading hub for life sciences, medical research, and biotechnology in the region and beyond.
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