Abu Dhabi has identified 23 possibilities for investment in the medical and pharmaceutical industries within its healthcare sector.
The emirate aims to spur local development and drive for self-sufficiency in the healthcare sector in the midst of the COVID-19 pandemic with this move.
The Abu Dhabi Department of Economic Development’s (ADDED) Industrial Development Bureau (IDB), in partnership with the Abu Dhabi Investment Office (ADIO), the Department of Health – Abu Dhabi and the Abu Dhabi Health Services Company (SEHA), specified the 23 areas of investment in pharmaceuticals and healthcare under the Basic Industries Program.
Of the 23 manufacturing prospects, 14 are investments in new areas of production such as face shields, medical gloves and antibiotics, ADDED said. Established sectors such as medical gases, surgical masks and medical beds are to be established in the nine remaining areas.
After analyzing the gap between local demand and supply output, the 23 investment areas were identified, said Nabeel Saleh Al-Awlaki, director of the Department of Environment, Health and Safety at the Office for Industrial Development.
The study is part of the ADDED led Basic Industries Project to achieve self-sufficiency in the healthcare, food and energy sectors. The goal is to provide the domestic market with basic goods, boost local production, establish new investment areas and increase the contribution of the non-oil sector to the economy.
Mohammed Ali Al Shorafa, Chairman of ADDED, said in the statement that the areas found were focused on ADDED’s analysis of current circumstances brought about by the COVID-19 outbreak.
During the COVID-19 pandemic, demand for medical supplies soared and some local manufacturing capacities in the UAE were converted to meet this need. Strata, the aerospace manufacturing unit of Mubadala Investment Company, seeks to furtherdiversify into the health technology market, after developing N95 masks in collaboration with Honeywell in May.
Abu Dhabi has issued a total of 23 medical manufacturing licenses in the emirate for investments valued at almost $0.54 billion, Rashed Al Balooshi, ADDED’s undersecretary, said in a statement. Of those, there are currently 10 new facilities under construction with an investment value of $253 million. With an investment value of $0.29 billion, the remaining 13 have already achieved production status.
In these key areas, the emirate provides incentives to local manufacturers including customs exemptions, industrial license exemption fees and reductions in electricity tariffs to industrial firms to minimize operating expenses.
Local manufacturers in the UAE currently contribute to only five percent of local consumption of healthcare products, Dr Sahar Fahmy, acting manager of the Department of Drug and Medical Products at the Department of Health, said.
ADIO converts the investment areas found by the Basic Industries Project into market opportunities, links investors with appropriate local stakeholders and helps in carrying out project feasibility studies. It is also looking at policy changes directly relevant to the industries listed to ensure companies have long-term, sustainable opportunities.
ADDED will implement the Basic Industries Project in collaboration with Abu Dhabi Agriculture and Food Safety Authority, Abu Dhabi Department of Energy, Department of Health and Adio.
