Report Overview

Increasing demand for generic drugs and a focus on providing cost-efficient and effective drugs for the treatment of rising prevalence of chronic diseases are expected to boost the growth of UAE active pharmaceutical ingredients (API) market during the forecast period between 2023 and 2029.

UAE Active Pharmaceutical Ingredients (API) Market - Industry Trends & Forecast Report, 2029

UAE active pharmaceutical ingredients (API) market size was estimated to be worth USD 1,264.75 million in 2022. During the forecast period between 2023 and 2029, the UAE active pharmaceutical ingredients (API) market size is projected to grow at a CAGR of 38.61%, reaching a value of USD 8,967.75 million by 2029. Major growth factors for the UAE active pharmaceutical ingredients (API) market include the rising incidence of chronic illnesses and the demand for tailored therapy for patients. Additionally, the development of innovative drug delivery systems is anticipated to significantly contribute to the market's growth during the forecast period.

UAE Active Pharmaceutical Ingredients (API) Market – Overview

Active pharmaceutical ingredients (API) are chemically and physiologically active components of medications that have a direct impact on the treatment, mitigation, and prevention of illnesses. These are produced using both chemical and biological methods. Paracetamol in medications for pain treatment and atorvastatin in medications for decreasing cholesterol are two examples of active substances. Oncology, cardiology, CNS and neurology, orthopedics, pulmonology, gastroenterology, nephrology, ophthalmology, and endocrinology are just a few of the medical specialties where APIs are used in high-quality medications.

UAE Active Pharmaceutical Ingredients (API) Market

Growth Drivers

Rising Prevalence of Chronic Diseases in UAE

The rising prevalence of chronic diseases, mainly due to poor lifestyle, is directly influencing the demand for generic and specialized drugs, which is directly influencing the demand for active pharmaceutical ingredients (API) in the country. In the UAE, cardiovascular disease accounts for 28 percent of all fatalities, making it the leading cause of death. Approximately 20% of inhabitants and 25% of Emirati nationals in the United Arab Emirates, or one out of every four people, have diabetes. As a result, the pharmaceutical companies as well as research institutions are establishing domestic facilities to boost their production of APIs and develop novel drugs, which is anticipated to proliferate the UAE active pharmaceutical ingredients (API) market growth during the forecast period.

Restraints

Presence of Counterfeit Drugs

The high presence and deep penetration of counterfeit drugs in UAE acts as a major restraining factor for the active pharmaceutical ingredients (API) market. These counterfeit products are manufactured and packaged identical to branded drugs but contains little to no active pharmaceutical ingredients. The consumers, often being unaware, purchase these drugs for their treatment. The consumption of these counterfeit drugs not only harm the profit of pharmaceutical companies but prove to be life-threatening to the patients.

Impact of COVID-19 on UAE Active Pharmaceutical Ingredients (API) Market

The unprecedented COVID-19 outbreak presented lucrative growth opportunities to the UAE active pharmaceutical ingredients (API) market. The pharmaceutical sector had a key role in treating COVID-19 symptoms such as high fever, cough, and cold. The active pharmaceutical components market expanded during the pandemic as a result of the pharma sector's exponential growth. After the COVID-19 outbreak was classified as a pandemic by the World Health Organization, a wide range of known pharmaceutical and biopharmaceutical businesses as well as new startups rushed up to develop treatments for the virus.

UAE Active Pharmaceutical Ingredients (API) Market

Segmental Coverage

UAE Active Pharmaceutical Ingredients (API) Market – By API

Based on API, the UAE active pharmaceutical ingredients (API) market is split into synthetic API and biological API. The synthetic API segment accounts for a higher share in the UAE active pharmaceutical ingredients (API) market. The low cost of raw materials and manufacturing process contributes to its market growth as it allows pharmaceutical companies to mass produce the drugs. However, biological API is anticipated to register a higher growth rate during the forecast period owing to the expanding research and development activities in this sector.

UAE Active Pharmaceutical Ingredients (API) Market – By Manufacturer

Based on manufacturer, the UAE active pharmaceutical ingredients (API) market is segmented into captive manufacturers and merchant manufacturers. Captive manufacturers hold a larger market share owing to the expanding pharmaceutical manufacturing industry in the UAE and the establishment of manufacturing facilities in the country. Captive manufacturing allows manufacturers to attain higher privacy and physical and intellectual property protection. However, merchant manufacturers are growing at a high rate owing to the rising outsourcing due to the lower cost of manufacturing.

UAE Active Pharmaceutical Ingredients (API) Market – By API of Drug

Based on the API of drug, the UAE active pharmaceutical ingredients (API) market is segmented into branded/innovator drugs and generic drugs. The branded/innovator drugs segment accounts for a higher share in the UAE active pharmaceutical ingredients (API) market by API of drug. Increased R&D activities for the development of innovative drugs and supportive regulatory frameworks contribute to its market growth. Many new products are currently being developed as a result of intensive research in this area and are anticipated to be released during the forecast period.

UAE Active Pharmaceutical Ingredients (API) Market – By Therapeutic Area

Based on therapeutic area, the UAE active pharmaceutical ingredients (API) market is segmented into the cardiovascular system, central nervous system, respiratory system, oncology, gastrointestinal system, and others. The cardiovascular system therapeutic area accounts for the largest share in the market. The high market share of this segment is mainly attributed to the rising prevalence of cardiovascular diseases. According to a paper published on BMC Cardiovascular Disorders, cardiovascular disorders account for 40% of deaths in the United Arab Emirates (UAE), which is influencing the demand for active pharmaceutical ingredients (API) in the country.

UAE Active Pharmaceutical Ingredients (API) Market – By Potency

Based on potency, the UAE active pharmaceutical ingredients (API) market is segmented into traditional API and HPAPI. The traditional API dominates the UAE active pharmaceutical ingredients (API) market owing to its wide application in the production of generic medicines. However, high potency API or HPAPI also covers a substantial market share. These compounds are used to trigger biological responses at a low dose. Therefore, they are prominently in the oncology segment, contributing to its market growth.

Competitive Landscape

Major players operating in the UAE active pharmaceutical ingredients (API) market include Teva Pharmaceutical Industries Ltd, Pfizer Inc., Novartis International AG, Mylan N.V., Aurobindo Pharma Ltd, Sun Pharmaceutical Industries Ltd, Boehringer Ingelheim GmbH, Dr. Reddy's Laboratories Ltd, Merck & Co., Inc., and Lonza Group Ltd

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In February 2023 - Aster Pharmacy, the retail division of Aster DM Healthcare, and Dr. Reddy's Labs India, a multinational pharmaceutical business with headquarters in Hyderabad, India, signed a contract to produce and distribute specific pharmaceuticals, including active pharmaceutical ingredients, in the UAE and GCC.

Scope of the Report

By API

• Synthetic API

• Biological API

By Manufacturer

• Captive Manufacturers

• Merchant Manufacturers

By API of Drug

• Branded/Innovator Drugs

• Generic Drugs

By Therapeutic Area

• Cardiovascular System

• Central Nervous System

• Respiratory System

• Oncology

• Gastrointestinal System

• Others

By Potency

• Traditional API

• HPAPI