Of late, Middle East (ME) has increasingly become an investment destination for global pharmaceutical and biotechnology players. Though only a year old, Pharmaceutical and Biotechnology Middle East (PABME) has done its bit to draw more countries to this region to strike business deals. This fast growing event is expected to help the global pharma and biotech players explore the ME healthcare market, which is expected to grow by leaps and bounds in the coming years. In an e-mail interview to Anil Mathew, Terri D'Elia, exhibition director, PABME detailed at length on the role PABME plays in troubled economic times to generate positive business interest and sketched a clear picture of the ME pharma and biotech industries. Excerpts:
How is PABME relevant as a brand within a global market?
PABME, as a brand is not only recognised in its own right, but carries with it the world famous Arab Health brand, due to the inclusion of the well established pharma section from Arab Health exhibition. These brands are internationally recognised.
Can you give us a brief idea of the evolution of PABME?
The inaugural event was in 2008 and proved very effective for the industry. This, the second edition of PABME with the inclusion of the pharma section from Arab Health, has grown both in size and profile with more exhibitors. Also, this year there are some very high profile conference speakers. In addition, the event now caters to the needs of the pharma and biotech industries - one could say, a One Stop Shop!
What differentiates PABME from such similar events?
PABME manages to achieve commercial attendees as well as academic. The event features a series of multi-track conferences, some of which provide accreditation. This year, we are also initiating a new feature - BioPharmaInvest. This new launch would look at investments and the potential for matchmaking during the event. This is unique within a showcase of this kind.
What sort of participation does PABME expect in 2009? How is it going to be different from the previous years?
The event has grown, and this year we also have representation from the UAE Ministry of Health and Health Authority Abu Dhabi on the exhibition floor and at the conferences. PABME has some superb speakers participating in the conferences this year. Besides, there are also 25 countries participating in the exhibition, as opposed to last year when there were only 10 countries. This is an indication of the pull of the region.
Can you give us an idea of Indian participation at PABME?
There are several Indian pharmaceutical associations which support the event in an official capacity. They include, Bulk Drug Manufacturers Association (BDMA), Indian Drug Manufacturers Association (IDMA), Pharmexcil, Federation of Asian Biotech Associations (FABA) and the Indian Pharmaceutical Association (IPA). These Associations represent most of the Indian manufactures and providers to the pharmaceutical and biotechnology industries.
How do you see Indian participation at PABME evolving over the years?
PABME has increasing support from India, which recognises the potential of the Middle East region more than most. Historically, there has always been a close relationship between the United Arab Emirates and India. Over all, we have a strong relationship with Indian companies for all of our Life Science events.
Do you have a message for Indian companies about the Middle East market?
I certainly do. Do not miss the opportunity of being part of a showcase that can still generate positive business interest. The world is aware that there is a global economic crisis, yet the Middle East market boasts ongoing investment in healthcare. The market is still increasing. With the economy in many countries looking fairly dismal, these forecasts surely provide motivation to enter this developing economic market. Expenditure by the GCC states on healthcare is estimated to grow at an annual average rate of 4 per cent up to the year 2015, when the healthcare market will be worth $ 24 billion.
As a platform for trade, what are the business opportunities offered at PABME? How successful has this platform been in the last year?
The UAE is a very successful platform, not only for access to the GCC and Middle East sub-continent, Saudi Arabia and Levant markets, but also provides entry into international markets, due to the increasing presence of the industry giants in the country. This is now officially a global gateway and definitely the most lucrative international exhibition hub. PABME therefore enables the pharmaceutical and biotechnology industry to have its own unique platform for this market.
At a time when most of the drug majors are eying acquisition of biotech companies, as an event dedicated to both these industries, what has PABME in store for them?
We offer an opportunity to network with the industry leaders and innovators and provide the industry players a platform to exhibit new products in the market. With the new BioPharmaInvest platform, there will be opportunities to network with those interested in making investments and those seeking it! Have the chance to meet face-to-face with potential buyers, manufacturers and secure agents or distributors. At the conferences the latest innovative topics would be debated.
Do you think industry gatherings like PABME would be more significant in the days to come as different sectors such as pharma and biotech get more and more integrated? How?
Definitely, as the networking opportunities result in co-operative business strategies in one of the leading economic industries.
Do you mind giving us a clear picture of pharma and biotechnology industries in Middle East and the business opportunities they offer to counterparts in other countries?
Firstly, Saudi Arabia and the UAE make the bulk of the GCC population. These two markets alone account for more than 80 per cent of the pharmaceutical market. The UAE (Dubai in particular) has set up two free-trade zones, where foreign investors enjoy incentives that are not applicable to those outside these areas. The incentives include the ability to maintain full ownership of the firm, import and export tax exemptions and fewer restrictions on visas and exemption of corporate taxes for 15 years. The Dubai Health Care City and DuBiotech are examples of such free-zones, where the largest pharmaceuticals and biotechnology firms have set up base. Dubiotech houses state-of-the-art research and development (R&D) facilities and world's leading biotechnology companies like Amgen and Genzyme.
Also, Saudi Arabia is attempting to attract healthcare investment through the Saudi Arabian General Investment Authority. A number of initiatives have been set up, and Saudi Arabia is attempting to attract pharmaceuticals, biotechnology firms and research institutes to conduct manufacturing and R&D activities through collaborative means. Endowment funds have been set up to encourage localised research by foreign talent with the intention to transfer knowledge and skills to the the large human resource.
Besides, the smaller GCC countries like Qatar and Kuwait also have direct and indirect involvement in pharma and biotechnology investments. For instance, a Kuwait-based private-equity firm, Global Investment House and UAE generics manufacturer Gulf Pharmaceutical Industries (Julphar) entered into a joint venture to form a large pharmaceutical retail chain in the region.
There have been similar investments such as that seen between UAE-based Ithmar capital and Banaja (Saudi) to create a pharmaceutical logistics firm and Pharma World Holdings, that would operate distribution capacities throughout the GCC and Egypt. These are only a handful of the cross-border investments that have happened between regional players (Pharmaworld, Gulf Pharmaceutical Industries and DuBiotech are all PABME 2009 exhibitors by the way).
I do hope highlighting the economic strength of the region, I have made clear the reasons to attend PABME from April 20 to 22 at the Dubai International Exhibition Centre.