The pharmaceutical companies in UAE are calling on the government to give a new stimulus to the local industry and reduce the country's dependence on imported drugs.

According to the UAE pharma companies a government body could co-ordinate supplies and help them win contracts to make branded drugs under licence in the UAE. It could also establish the country as a regional supplier of drugs to other gulf nations.

As of now, around 90 per cent of pharmaceuticals are imported, leading to high prices and critical shortages. It also has brought about a situation where very little of the money spent on medicine is reinvested in the local economy. Most drugs produced in UAE are generic, although some branded drugs are made under licence.

In this wake licensing deals between foreign companies and UAE manufacturers would greatly reduce the amount of drugs imported, even though the raw materials would still need to be bought from abroad.

Also, more local manufacturing would mean more money being reinvested in the economy. As per available data, presently only five to 10 per cent of the total amount spent is reinvested back into the UAE.

"Although Dh1.4 billion (US $380 million) was spent in the UAE on pharmaceuticals last year, globally it is a very small market. This means the big pharmaceutical companies are less likely to take it into account in their production and supply plans. The multinationals are less likely to offer discounts, and could favour other markets during times of peak demand, such as epidemics," said Prasanth Manghat, chief financial officer, Neopharma, welcoming the move.

"When we import so much, problems such as out-of-stock situations, higher prices and critical products not being available in an emergency can all exist. Any industry body set up should provide more than just financial support; it should also help allocate land to local manufacturers or research and development based companies, support licensing agreements with foreign companies, help with local tenders and boost export deals," he added.

The Middle East's fragmented market also creates problems, especially when licensing new drugs for use. Companies have to deal separately with the UAE, Saudi Arabia and Kuwait. It is a tedious process for them.

"A lot of the problems would be solved by more local manufacturers here. We do not see the same problems in other countries as they support their local manufacturers. At the moment we are dependent on foreign manufacturers," noted Prasanth Manghat.

The pharma companies' demand would also require an independent regime for safety testing, which the UAE does not currently have. Drugs are licensed according to international standards, such as those set by the US Food and Drug Administration.

"We would be happy if there were more local companies for us to deal with. In this case this would allow us to contribute to the good manufacturing practice," said Ahmed el Hamed, director, external affairs, Middle East, Pfizer reacting to the UAE pharma firms' call to government.

According to the available figures the UAE spends the most per head on medicines in the region. The average annual spending is US $80 (Dh290) in the Emirates, compared with $20 in other Arab countries and $52 in Gulf countries. This is partly due to the price of drugs being higher than in most other Gulf countries.

Dr Ali al Sayed, director, pharmaceutical services department, Dubai Health Authority, said the department would also support an industry body to boost the local market. "It could also help ensure manufacturers are not competing directly in the wrong areas. We would have to make sure that five companies are not all making the same thing - this would be pointless. An industry could help guide manufacturers about what to make and where to focus. There should be a study done to find out what we need here," he added.

There are four main pharmaceuticals manufacturers in the Emirates. They are Neopharma, Globalpharma, Medpharma and Julfar.

Dr Mohamed Wahab, product manager, Globalpharma, said the UAE could position itself well as a Middle East producer, if the industry were given enough support to flourish and mature.

"I would like to see more government investment in research and development. We would then be able to produce our own products and export them," he said.