Patent Reform Leads to Increase in Foreign Investment in UAE Drugs Market

Despite some remaining areas of concern, the level of patent protection to foreign pharmaceuticals products has improved considerably, with the onset of the UAE's WTO commitments this year helping to resolve matters. Indeed, recent regulatory amendments tightening patent law reflect the UAE's commitment to this process. However, the illegal copying of branded products is a key concern for the international drug industry, with protection in the UAE below that enforced in more developed markets.

A clear sign that improvements have been made in this area comes from the list of recent investors to this potentially rich market. Last year, Abu Dhabi-based drugmaker NeoPharma confirmed it was in talks with several multinational pharmaceutical companies, including US giant Pfizer, UK-based major GSK, Apotex from Canada, Novartis of Switzerland and Indian global generics major Ranbaxy. Negotiations were regarding the out-licensing of manufacturing by the multinationals to NeoPharma in order to supply the UAE market.

Meanwhile, another Indian drugmaker Dabur has confirmed its plans to establish a new manufacturing facility in Dubai with an investment of INR100mn (US$2.3mn). The plant, which is scheduled to start production by September 2005, will be Dubar's third such facility in Dubai.