The pharmaceutical market in the Gulf Cooperation Council (GCC) countries surpassed $30 billion in 2025 and is projected to continue growing at an annual rate of approximately 7.5 percent, driven by increased government investment in local manufacturing, biotechnology, and healthcare research, according to a recent report by JLL. The consultancy noted a significant transformation within the region’s life sciences sector, which is shifting from reliance on medicine imports toward becoming an innovation-led producer supported by sovereign wealth, national industrial policies, and efforts to bolster healthcare security.
Between 2020 and 2025, investment in Gulf biotechnology exceeded $12 billion, fueled by government funding initiatives, tax incentives, and measures designed to attract international pharmaceutical firms. The biotechnology market in the GCC is expected to reach $2.6 billion by 2028, while the local market for generic medicines could grow to nearly $14.7 billion by 2032. The production of biosimilars is one of the fastest-growing segments, expanding at rates between 15 and 20 percent annually, supported by the development of new manufacturing plants and enhanced cold-chain logistics.
The UAE and Saudi Arabia are leading the region’s pharmaceutical expansion. Saudi Arabia’s Vision 2030 and the UAE’s Operation 300B are key government initiatives driving investments into pharmaceutical and biotechnology sectors. The UAE has seen the establishment of advanced pharmaceutical manufacturing facilities in Abu Dhabi and Dubai, focusing on generic drugs, complex biologics, and contract manufacturing services for global companies. Saudi Arabia has streamlined regulatory approvals for domestically produced medicines and formed partnerships with international pharmaceutical groups to create research and production hubs.
Sandeep Sinha, Head of Healthcare and Life Sciences Consulting for the Middle East and Africa at JLL, described the GCC as entering a new phase of healthcare development. He highlighted a shift from traditional drug formulation to producing high-value biologics and advanced therapies, with governments investing in specialized life sciences clusters, state-of-the-art manufacturing capabilities, and world-class logistics infrastructure. These efforts aim to position the GCC as an integrated hub within global pharmaceutical supply chains while enhancing long-term healthcare resilience.
The report identifies Dubai and Riyadh as leading centers combining strong research activities with manufacturing capacity. Dubai benefits from a robust pharmaceutical production environment, research institutions, and major logistics infrastructure, including Dubai Science Park and Jebel Ali Port. Riyadh pairs manufacturing growth with academic research and an expanding pharmaceutical supply chain. Abu Dhabi is emerging as a center for biotechnology, genomic sequencing, and precision medicine, while Doha is strengthening its role in genomics and specialized clinical research. Oman is expanding manufacturing capacity with 18 new production facilities under construction alongside existing ones. Bahrain is focusing on pharmaceutical manufacturing and logistics, whereas Kuwait is targeting importation of advanced life sciences technologies and growth in digital health, personalized medicine, and gene therapies.
The report draws attention to rising rates of chronic diseases and growing demand for specialized treatments, creating opportunities beyond generic medicines in areas such as personalized healthcare, genomics, vaccines, advanced biologics, and cell and gene therapies. Artificial intelligence is increasingly involved in drug discovery efforts. However, JLL also notes significant gaps remain, including a shortage of dedicated facilities for large-scale clinical trials and biotechnology research, as well as limited production capabilities for biologics, biosimilars, vaccines, and complex medicines.
With a diverse population comprising over 200 nationalities, the GCC offers a broad base for international clinical trials, particularly in genomics and oncology. JLL suggests these gaps represent investment opportunities for the establishment of specialized research laboratories, clinical trial facilities, and advanced manufacturing hubs across the region.