The pharmaceutical and healthcare sector is one of the key pillars in Jafza. Owing to its competitive and cost-effective business incentives the free zone has proved to be a gateway for leading local and international companies including Roche, Johnson & Johnson, Glaxo Smith & Kline (GSK), Sanofi, Novartis, Abbott, Bayer, and Life Pharma
The UAE has gained the reputation of being one of the largest pharmaceutical markets in the Middle East and North Africa presenting myriad growth opportunities for local and international pharmaceutical players who are key contributors to the economic prosperity of the nation. The expansion of private healthcare coverage and the advanced digital infrastructure have been driving growth in the sector.
What’s more? The UAE’s efforts to attract bright talent from countries around the world. In November last year, the UAE announced that foreign nationals would be allowed to own 100 percent of commercial companies within the country, eliminating the need for a UAE national to hold the majority share. This move will give a major boost to a variety of industries including the pharma and healthcare sector.
Additionally, the UAE’s strategic location and sophisticated logistics infrastructure, especially in light of the Dubai Silk Road strategy makes it an ideal hub to gain access to growing regional markets in Africa, Asia, and the Middle East. Moreover, the several free zones across the country have become incubators for small and big names in the sector. According to a Fitch Solutions report the pharmaceuticals sector will witness a 5.2 per cent growth in 2021. The sector is projected to grow to AED13.6bn. While the healthcare sector will grow to AED58.6bn.
Uplifting the sector
DP World, UAE Region and it’s flagship logistics hub comprising the flagship free zone and port – Jafza and Jebel Ali have led the way for development in the sector. The healthcare and pharmaceutical segment is a key economic pillar in Jafza. Due to its immense potential, the free zone witnessed a surge of 12 per cent year-on-year growth in 2019-2020. In 2019, the volume of trade in the segment stood at 25,000 metric tonnes, valued at AED900 million.
The free zones pharma and healthcare cluster has driven sustainable growth for its partners through numerous pioneering incentives and state-of-the art services and facilities, helping companies establish operations within a dynamic market that offers multimodal connectivity. This has highlighted the way forward for stakeholders from the free zone.
Abdulla Bin Damithan, CEO & Managing Director, DP World, UAE Region and Jafza said, “Dubai is a key hub for the UAE’s pharmaceutical trade. This sector is one of the six priority sectors identified for focused development by the Dubai Government, under the UAE Vision 2021 and the Dubai Industrial Strategy 2030. The Strategy aims to increase the total output and value-addition of the manufacturing sector. As a trade and logistics hub, we support this vision and are determined to help the segment grow. Being one of the major contributors to Dubai’s healthcare sector, we have continually provided support to our customers across the supply chain. Our efficiency and the ecosystem we have in place contribute to the growth of businesses within our hub, adding value to the economy of the country.
Scheuer Jean-Paul, General Manager, Sanofi Genzyme and MCO Lead, Gulf & KSA MCO said, “As a global healthcare company, it is important for Sanofi to be part of a strong free zone such as Jafza. We need a partner that understands our varied and complex business needs, and Jafza’s global connectivity and advanced business operating framework help us navigate through our business here with ease.”
This Sector [Pharmaceutical Sector] is one of the six priority sectors identified for focused development by the Dubai Government, under the uae vision 2021 and The Dubai Industrial Strategy 2030.
Jafza’s Healthcare and Pharma sector spreads over and area of around 170,000 square meters, currently housing 174 Healthcare and Pharmaceutical companies from 41 Countries and providing jobs to 1, 100 Employees.
- 100 % foreign ownership permitted on commercial companies in UAE
- 5.2 % growth in UAE pharmaceutical sector anticipated in 2021
Reinforcing the business in the industry
Jafza’s healthcare and pharma sector spreads over an area of around 170,000 square meters, currently housing 174 healthcare and pharmaceutical companies from 41 countries and providing jobs to 1,100 employees. Some of the top traded commodities consisted of medicaments, medicinal solution, medical and surgical dressings. Countries like China, India, the UK, France and the US are Jafza’s key import trade partners, whereas export trade partners comprise Iraq, Kuwait, Jordan, Saudi Arabia and Bahrain. The free zone’s client base includes prime customers like Roche, Johnson & Johnson, Glaxo Smith & Kline (GSK), Sanofi, Novartis, Abbott, Bayer, and Life Pharma among others.
Dr. Ashraf Sabry, Chief Commercial and Marketing Officer of New Country Healthcare said, “From clearing the goods, to dealing with customs, to delivering the product as soon as possible, Jafza’s state-of-the-art and unique facilities have played a massive role in ensuring that shipments were handled promptly and products were delivered to customers in good condition and on-time. The pandemic proved in many ways that various organizations including New Country Healthcare relied and benefited greatly from Jafza’s effectiveness in bringing the products out of the ports and to the doorsteps of our customers.”
To cater to their growing client base, some of whom have been in the free zone since its inception, Jafza offers business incentives that help companies sustain in an ever-changing market. On demand warehouses are available on a short-term lease with multi-functional storage options. Cost-effective transport services keep operational costs to a minimum, ensuring ease of accessibility and faster and efficient deliveries. Other in-house logistics solutions including clearing and document processing services, 24/7 lease issuance, fast-track EHS approvals tailored to assist companies manage their supply chain costs while facilitating trade and efficient movement of goods. Furthermore, no VAT or customs duties and 0 per cent corporate tax for 50 years, renewable concessions add value to organisations operating in the free zone.
Embracing digitalisation
Being one of the technologically advanced free zones in the region, Jafza also allows companies to utilise to their advantage the finest technology deployed within the free zone. As part of its efforts to integrate technology in all aspects of operations, the free zone collaborated with Etisalat to offer a glimpse of how 5G technology can revolutionise the way companies are operating in Jafza and can do business in the future. Additionally, Jafza’s world-class plug-and-play infrastructure connects traders globally through Jebel Ali Port and its Smart Trade solutions. Taking into account the mission of the leaders of DP World and Jafza and their vision for the industry, the free zone has in many ways contributed significantly to many companies in the Middle East and beyond. With its multitude of benefits, the world-leading free zone has become a crucial aspect of the evolution and expansion of the pharma & healthcare sector, attracting both foreign direct investment (FDI) and also local companies by providing a unique trade eco-system that reduces cost, while facilitating new growth opportunities.
- 174 healthcare and Pharmaceutical companies in Jafza
- 12% year-on-year customer growth for Jafza between 2019 and 2020
- Being one of the major contributors to Dubai’s healthcare sector, we (Jafza) have continually provided support to our customers across the supply chain. Our efficiency and the ecosystem we have in place contribute to the growth of businesses within our hub, adding value to the economy of the country.