Sheikh Saud opens 4th Arab European Pharma Seminar in Ras Al Khaimah

The seminar was attended by representatives from ten leading global pharmaceutical machinery manufacturers and more than twenty leading pharmaceutical producers from the Middle East.

Speaking on the occasion, Sheikh Saud said that investing in knowledge and health would hold the key towards success and well being of nations in the future.

He said that Ras Al Khaimah based Gulf Pharmaceutical Industries has become a leader in pharmaceutical production in the Gulf region by implementing a strategy of constant innovation and excellence in quality.

Sheikh Saud said that Government of Ras Al Khaimah has created different gateways for investors in tune with the changing global economic scenario.

"We have created the Ras Al Khaimah Investment Authority and the Ras Al Khaimah Free Zone to act as gateways for investors to set up businesses through a simplified and hassle- free manner in the Emirate", he added.

Sheikh Faisal bin Saqr Al Qasimi, Chairman of Gulf Pharmaceutical Industries, said that the company will invest AED 1 billion in various expansion programmes in the coming five years.

Abdul Razzaq Yousef, CEO of Gulf Pharmaceutical Industries, said that the company is planning to set up 11 new manufacturing plants, seven of them in the UAE and four abroad, as part of the expansion programme. He pointed out that four of the proposed seven plants in UAE would focus on finished pharma products while the remaining three plants would produce raw materials. He said that the new manufacturing plants abroad would be located in Morocco, Sudan, Afghanistan and Bangladesh.

Presenting a paper on `Pharma Industry in the Arab World- Threats and Future', Abdul Razzaq Yousef, said that implementation of Patent Laws has prevented the pharmacy industry of the Middle East from the introduction of latest drugs. "This has lead to more competition among the 196 pharmaceutical industries in the Middle East, who are now competing on the 70 percent of the Middle East Pharma market, which is only about USD 8 billion.

He said that it is of critical importance that UAE should immediately develop a clear- cut patent law in conformity with international laws that would govern all aspects regarding the registration of patents, their regulation and protection procedures in the country. Abdul Razzaq said that issues regarding patents in UAE are currently governed by a decree from the Ministry of Health which is inadequate on many counts, including lack of proper procedures and without a time frame.

He said that the vision for pharmaceutical industry in the Arab world should be focused on enhanced investments in biotechnology, introduction of new formulations through proper research, compliance with the latest cGMP/ FDA or EU guidelines, flexibility in packaging and a strong export orientation.

"Pharma industries in the Arab world must invest in biotechnology. It is true that it is rather costly and time consuming, yet without that, we as generic companies would not survive the next generation", he said.

Stressing the need for a strong export orientation to fuel future growth, he said, "In order to survive the impact of patent law, WTO and the latest requirements which impose big financial burdens, we must work to export more and more". Abdul Razzaq said that Julphar was exporting 90 percent of its total production to more than 40 countries.

Abdul Razzaq Yousef said that the Middle East pharma market, which is now about USD 8 billion, could triple in 10 years. The UAE pharma market has doubled in three years due to privatization, introduction of aphrodisiac products and implementation of patent laws.

Outlining the various threat factors being faced by the industry, he said that despite World Trade Organisation (WTO) and Free Trade agreements, export of medicines to US and EU markets is going to be difficult. "Even if Arab manufacturers succeed in registering their products and accommodate the high cost of registration, which would work out to USD 200,000 per product, the other pre-requisites like inspection by FDA and EU authorities, which would take up to 3 years, impose technical barriers that would hinder Arab countries from exporting.

"The high costs for bio-equivalence studies, which have now become a must for registration is also an obstacle", he said and added that competition among Arab companies on the price front is also becoming more and more fierce.

Siegfried Drost, Managing Director of Uhlmann Pac-Systeme GmbH Co. KG, presented a paper on `Pharma Production 2010, Supply Chain' at the seminar.

Sheikh Ahmed bin Saqr Al Qasimi, Chairman of RAK Customs and Ports and several dignitaries attended the seminar.