Great Expectations: The rise of Middle East biotechs onto the world stage

The Middle East Is One of the World's Biggest Centers of Biotechnology Growth

Traditionally, the biotech industry has been headquartered in and focused on the western world. However, I have seen firsthand how the biotech industry is rapidly growing and establishing a profound presence in the Middle East. With an ageing and growing population, and the adoption of a more western lifestyle, the need for more locally created and manufactured medical treatments and products has become apparent in countries such as Qatar and KSA.

Qatar will do more than just host the FIFA World Cup for the first time. It is an up-and-coming superstar in the biotech industry and can currently conduct Phase 1, 2, and 3 clinical trials. In addition, the recent creation of state-of-the-art scientific academic facilities has also led to a boom in local talent and research in the region. As a result, well-established biotech industry companies are already starting to establish headquarters in the region and are attracting even more small companies and start-ups.?

Examples of Top Companies

The biotech industry in Qatar and KSA is booming, and if I know one thing for certain, it’s that one of them is bound to become the next Silicon Valley of biotechs. In Qatar for example, the Qatar Foundation umbrella covers:

???????????Qatar Science and Technology Park (QSTP ),

???????????Sidra Medicine (only hospital ?funded for children and women who are pregnant)

???????????Qatar Biomedical Research Institute (QBRI ).

All three of these are funding and collaborating with biotechs that are already making waves in the industry.?

The Lay of the Land

An ageing population means higher incidences of chronic, age-related conditions such as cancer and diabetes, according to?Market Data Forecast . However, advancements in medical technology and access to health and wellness education means people are living longer, with populations in the Middle East no exception. This increase in life expectancy has resulted in the prospect of a?2% increase ?in healthcare spending in the Middle East in the near future, attracting biotech companies to move to or establish their business in the region.

Biotech companies in Qatar and KSA are participating in a pharmaceutical purchasing cooperative, the?Gulf Cooperation Council (GCC) , to provide their citizens with affordable treatment options. Cooperatives present an opportunity to bring academics and researchers together with biotech companies to foster innovation and bring affordable treatments to the region.

Biotech companies in Qatar are welcomed with open arms, as they improve the likelihood of success for the?Qatar National Vision 2030 . The National Vision is a plan designed to modernize and expand and improve the quality of life in the country, whilst respecting deeply held traditions. Companies looking to create headquarters in Qatar are an important aspect of this modernization as they bring with them medical advancements and provide a large number of jobs and income to the region.

Industry Giants Are Taking Notice

Industry giants ?such as Merck, Pfizer, Johnson & Johnson, and Novartis are taking notice of the need for localization in the Middle East. Over 450 biotechs are now operating in the region due to "free zones," which offer foreign companies the chance to maintain full ownership, as well as tax benefits, as reported in the?Pharma Times . Biotech companies in KSA also benefit from a new licensing agreement by the?Saudi Arabian General Investment Authority (SAGIA) ?that incentivizes researchers and students to solidify their patents and start-ups within the country.?

These companies are also taking notice of the projected?10–15% ?year-over-year growth of the pharmaceutical market in the area, compared to 5% within the western world. This exploding demand presents an opportunity for large companies and start-ups alike to grow and thrive in an emerging market.

Healthcare Hubs Are the Way of the Future

Biotech companies in Qatar and KSA aim to establish concentrated healthcare hubs in the region to foster innovation and research. According to Pharma Times, the Dubai Biotechnology and Research Park, also known as DuBiotech, is projected to be a 30 million square foot hub of pharmaceutical and biotechnology business and innovation in the UAE.?BioPlan Associates, Inc. ?reports it will boast a wide range of research, including stem cell research, in accordance with international regulations.

KSA is home to the King Fahad Medical City (KFMC). Being one of the largest and fastest growing medical complexes in the Middle East, the KFMC has a capacity of 1,200 beds and is estimated to see 500,000 outpatients per year, according to their?website . KSA is also home to the King Abdullah University of Science and Technology (KAUST ). Both the KFMC and KAUST play an important role in coordinating with biotech companies looking to establish business and create new technologies within the Middle East region.

Qatar Foundation's ?Education City is another large educational and scientific cooperation. It houses branches of top universities from around the world, including Carnegie Mellen, HEC Paris, and Hamad Bin Khalifa University. The 12-square-kilometre collaboration of concentrated research and education is designed to cultivate groundbreaking discoveries to improve life for Qataris and the world at large and makes Qatar one of the region's hottest destinations for biotech innovation and research.

With access to health and wellness information, as well as improved access to healthcare, populations in the Middle East are living longer these days, and that brings with it a need for the biotech industry to set up shop in the region to fulfil the need for cost-effective treatments and medications. Biotechnology industry giants, such as Merck and Johnson & Johnson, as well as major governments in the region are taking notice of the need for new partnerships to foster cutting-edge research and improve access to medications and technology.?

To accelerate this boom in biotech, governments are offering tax benefits and other business incentives, to the advantage of many companies.?Some of the most intriguing opportunities for these giants, as well as new start-ups, are the massive healthcare research and treatment hubs being created in the region. State-of-the-art educational, research, and treatment facilities, such as the King Fahad Medical City and King Abdullah University of Science and Technology in KSA, DuBiotech in the United Arab Emirates, and Qatar Foundation's Education City, present intriguing opportunities to be a part of the booming business and innovation happening in the region.

Opportunities for Growth

Having lived and worked in the region for the past two plus decades, I can see the vast potential that it has to offer. It is critical for Early-stage biotech companies to have access to capital and other valuable resources, in order to continue their research efforts for many years to come. Venture philanthropy is a cause close to my heart and it aims to spark a much-needed change in the industry’s mindset on how we can support these Early-stage biotech companies now and into the future.

Copyright ? 2022 Lance Kawaguchi. All Rights Reserved.