Around 8-10 leading pharmaceutical companies from India have evinced interest in setting up their units and facilities in Ras Al Khaimah Economic Zone (RAKEZ) in the UAE to capture a huge slice of Gulf Cooperation Council (GCC)'s market.
The CEOs of these listed companies have met Sheikh Ahmed bin Saqr Al Qasimi, chairman of RAKEZ and Ramy Jallad, group CEO of RAKEZ, RAK Free Trade Zone and RAK Investment Authority to discuss a proposal to set up businesses there during an investment summit being jointly held by KPMG and RAKEZ in Mumbai from November 21-23.
GCC comprises six member countries-- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates --which depend on drug import for 80 per cent of their domestic requirements. The pharmaceutical market in the GCC countries is expected to be worth over $9.6 billion by 2019, according to a Business Monitor International report.
Indian pharmaceutical companies, which have strategically positioned themselves as global players, are yet to fully tap the GCC potential.
Companies having a base in investor friendly Ras Al Khaima can easily access to GCC market, in addition to growing markets of the Middle East, North Africa, Europe, and South and Central Asia which have seen a rapid increase in population over the years. They hold a tremendous potential for healthcare sector.
With the UAE coming up with new healthcare regulation aiming at making it easier to do business, healthcare companies are going to have a win-win situation.
RAKEZ currently hosts 13,000 companies from entrepreneurs and startups to SMEs and manufacturers covering over 50 industries from over 100 countries. Of 13,000 companies, 3000 are Indian companies spread across various sectors. These include Ashok Leyland, GK Technologies, Dabur, Perfect Polymers, Mahindra etc. So far no Indian pharmaceutical company has operations in RAKEZ. Home grown Julphar is the only pharma major operating in Ras Al Khaimah.
Talking about benefits available for Indian companies in the emirate of Ras Al Khaimah, Ramy Jallad, group CEO of RAKEZ said, “RAKEZ is fast emerging as the world’s fastest growing free and non-free economic zones providing a metropolitan culture for living and working in addition to all the facilities required to set up the industry. They give clearances with all licenses and other documentation required within 24 hours. Indian companies can deliver goods to neighboring markets faster and more cost-effectively. Ras Al Khaimah boasts of a strategic location-- four hours flight time to 31 per cent of the world's population and situated at the crossroads of fast-growing markets. It offers 25-50 per cent lower costs of living and operating a business than other major business cities. It is supported by major logistical hubs-- four seaports including Saqr port which is the largest bulk commodity port in the Middle East; RAK international airport as well as proximity to Dubai International Airport; multi-lane superhighways connecting to neighboring emirates and countries.”
Drug companies having local presence are in an advantageous position to bag drug procurement tenders floated by GCC governments. With growth in healthcare spending expected to be nearly 9.5 per cent annually in the MENA region alone until 2019, Ras Al Khaimah’s pharmaceutical firms are all but assured a greater slice of the pie, he said.
Businesses operating in Ras Al Khaimah free trade zone (RAK FTZ) are subject to tax-free operations, enjoy 100 per cent foreign ownership, infrastructure, and real estate amenities, marketing assistance, and proximity to international transportation hubs. The RAKEZ offers free zone and non-free zone licences through RAK FTZ and Ras Al Khaimah Investment Authority (RAKIA) for companies operating in diverse industry sectors including, manufacturing, consulting, trading, logistics, academic, media and many more, Jallad added.