UAE Contract Manufacturing Organizations Market Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Type (Active Pharmaceutical Ingredients (API) Manufacturing, Finished Dosage Formulation (FDF) Development & Manufacturing, Secondary Packaging), By End User (Big Pharmaceuticals, Small and Mid-Size Pharmaceuticals, Generic Pharmaceutical Companies, Others), by region, and Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.79 Billion
CAGR (2026-2031)	9.73%
Fastest Growing Segment	Secondary Packaging
Largest Market	Abu Dhabi
Market Size (2031)	USD 4.87 Billion

Market Overview

The UAE Contract Manufacturing Organizations Market will grow from USD 2.79 Billion in 2025 to USD 4.87 Billion by 2031 at a 9.73% CAGR. Contract Manufacturing Organizations in the United Arab Emirates are specialized entities that provide comprehensive drug development and production services to pharmaceutical and biotechnology companies. The market’s expansion is fundamentally supported by strategic government mandates, such as the "Make it in the Emirates" initiative, which incentivize the localization of industrial capabilities and aim to reduce national dependency on imported medical products. Furthermore, the country’s geographic positioning as a central logistic gateway to the Middle East and Africa encourages international players to establish local manufacturing agreements to serve regional demands more efficiently.

A primary obstacle inhibiting broader market expansion is the substantial reliance on imported active pharmaceutical ingredients, which subjects local manufacturers to global supply chain disruptions and price volatility. This dependency creates a vulnerability that can delay production timelines and affect cost structures for contract manufacturers. According to the organising committee of the Dubai International Pharmaceuticals and Technologies Conference and Exhibition, in 2024, the domestic pharmaceutical infrastructure expanded to include over 35 manufacturing facilities capable of producing more than 2,500 medicines locally.

Key Market Drivers

Strategic government initiatives and industrial funding are fundamentally reshaping the UAE Contract Manufacturing Organizations market by subsidizing infrastructure and incentivizing foreign direct investment. The "Make it in the Emirates" campaign, coupled with specialized zones like Dubai Industrial City, provides crucial support for establishing advanced production lines, thereby reducing initial capital expenditure for manufacturers. This support is evidenced by significant capital inflows; according to Dubai Industrial City, August 2024, in the 'OZON Pharmaceuticals signs agreement to develop AED 293 million manufacturing facility' press release, OZON Pharmaceuticals committed to establishing a new production plant to serve regional demands. Such investments highlight how state-backed industrial ecosystems are successfully converting policy frameworks into tangible manufacturing assets.

Simultaneously, the market is propelled by the growing demand for generic medicines and biologics, driven by a rapidly expanding domestic healthcare sector and the need for supply chain resilience. As local healthcare providers consolidate and expand, there is a heightened requirement for locally sourced pharmaceutical products to mitigate import reliance. According to the Emirates News Agency (WAM), January 2024, the Dubai International Pharmacy Technologies Conference and Exhibition (DUPHAT) concluded with commercial deals valued at over AED 8.5 billion, underscoring the immense volume of trade and procurement activity within the sector. This demand is further supported by the financial strength of major healthcare conglomerates that purchase these manufactured goods; for instance, according to PureHealth, March 2024, the group reported annual revenues of AED 16.4 billion for the 2023 fiscal year, reflecting the massive scale of the healthcare ecosystem sustaining local manufacturing operations.

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Key Market Challenges

The substantial reliance on imported active pharmaceutical ingredients and raw materials constitutes a critical impediment to the growth of the UAE Contract Manufacturing Organizations market. This dependency exposes local manufacturers to external supply chain variabilities, including price volatility and logistical bottlenecks, which complicates production planning and financial forecasting. Such instability makes it difficult for contract manufacturers to maintain the rigid delivery schedules and cost-efficiency required by multinational pharmaceutical clients. Consequently, the absence of a robust domestic raw material ecosystem means that local entities are often relegated to secondary manufacturing roles, limiting their capacity to offer end-to-end drug development services.

According to the US-UAE Business Council, in 2024, the country imported approximately 80% of its pharmaceutical products, a figure that highlights the acute shortage of localized upstream production capabilities. This structural gap directly restricts the market's expansion by forcing manufacturers to absorb fluctuating global input costs, thereby reducing their competitive advantage against established global hubs that possess integrated supply chains. As long as this imbalance persists, UAE-based organizations face significant hurdles in transitioning from simple packaging providers to full-spectrum developers, hampering the sector's overall economic maturity.

Key Market Trends

The Surge in Strategic Alliances for Localized Drug Production is fundamentally altering the market's structure as local entities increasingly partner with international technology providers to internalize complex manufacturing capabilities. This trend signifies a departure from traditional secondary packaging roles towards the development of full-scale production lines for specialized medicines, driven by the need to secure intellectual property and reduce import dependency. Such collaborative ventures are rapidly materializing into tangible infrastructure; according to Dubai Industrial City, May 2024, in the 'Dubai Industrial City announces a new pharma and innovative medicine factory' press release, a strategic agreement was signed with MD Pharma Factory to establish a new AED 130 million manufacturing facility dedicated to producing intravenous solutions and innovative medicines.

Concurrent with localization is the Transition into a Regional Pharmaceutical Export Hub, where UAE-based Contract Manufacturing Organizations are leveraging harmonized regulatory standards to serve the broader Middle East and North Africa (MENA) market. Manufacturers are aggressively expanding their registration footprints to act as centralized supply nodes, thereby stabilizing revenue streams against domestic market saturation. This export-oriented growth strategy is actively yielding financial results; according to Gulf Pharmaceutical Industries (Julphar), November 2024, in the 'Julphar Reports strong Q3 2024 Financial Results' press release, the company achieved quarterly revenues of AED 417.1 million, bolstered by the successful registration of 55 new products across the MENA region to be launched subsequently.

Segmental Insights

The Secondary Packaging segment represents the fastest-growing category in the UAE Contract Manufacturing Organizations market, driven by the strategic localization of pharmaceutical supply chains. This growth is largely attributed to strict compliance mandates regarding serialization and specific labeling requirements enforced by the UAE Ministry of Health and Prevention. International manufacturers are increasingly prioritizing local secondary packaging to ensure adherence to these regional standards while optimizing distribution logistics. By outsourcing these final assembly stages, companies can effectively meet government localization goals and accelerate product time-to-market without establishing full-scale primary manufacturing facilities.

Regional Insights

Abu Dhabi holds the leading position in the UAE Contract Manufacturing Organizations market, driven by the government's aggressive diversification mandates under the Abu Dhabi Industrial Strategy. The emirate attracts significant pharmaceutical investment through specialized infrastructure projects like the KEZAD Group and the Masdar City Life Sciences Cluster, which provide dedicated facilities for production. Additionally, the Department of Health – Abu Dhabi shapes a favorable regulatory environment that encourages both local manufacturing and international partnerships. This combination of targeted industrial policy and dedicated life sciences ecosystems actively consolidates Abu Dhabi’s status as the primary operational hub for contract manufacturing in the region.

Recent Developments

• In April 2025, Globalpharma entered into a licensing and supply partnership with ZIM Laboratories, a research-driven pharmaceutical company based in India. Unveiled at the AIM Congress, this collaboration focused on introducing EU-certified Oral Dispersible Film technology to the UAE market. Under the agreement, the partner company committed to supplying bulk products and regulatory support, while Globalpharma undertook the responsibility for local manufacturing and commercialization of the finished formulations. This alliance aimed to provide advanced, patient-centric dosage forms and reinforce the UAE's position as a hub for innovative pharmaceutical manufacturing.
• In January 2025, the Sharjah Research, Technology, and Innovation Park announced the establishment of three new pharmaceutical factories with a combined investment value exceeding $84 million (AED 308.7 million). These agreements were signed during the 13th International Pharmacy and Medicine Conference and aimed to bolster the region's industrial capacity. The new facilities were designated to specialize in the manufacturing of respiratory products, eye drops, antibiotic capsules, and first aid materials. This initiative highlighted the increasing role of the emirate in attracting global and regional investment to develop a robust local pharmaceutical supply chain.
• In October 2024, Mubadala Investment Company significantly expanded its life sciences footprint through its specialty pharmaceutical business, KELIX bio, by acquiring a 100% stake in four key assets from GlobalOne Healthcare Holding. The acquisition included Bioventure, Bioventure Healthcare, Gulf Inject, and Wellpharma, companies specializing in biopharmaceuticals, soft gelatin capsules, and sterile fluid management. This strategic consolidation was aimed at establishing a national pharmaceutical champion in Abu Dhabi, thereby strengthening the country's local manufacturing infrastructure, securing drug supplies, and reducing healthcare costs in line with the nation’s economic diversification goals.
• In May 2024, Dubai Industrial City finalized a strategic agreement with MD Pharma Factory to establish the first Egyptian medicine manufacturing facility within the United Arab Emirates. This collaboration was designed to enhance the local industrial sector by constructing a new plant on a 223,000-square-foot plot. The facility, scheduled to commence operations in 2025, was set to focus on the production of intravenous solution products to serve markets across the Gulf Cooperation Council and Africa. This development underscored the growing appeal of the UAE’s industrial ecosystem for international pharmaceutical manufacturers seeking to localize their production capabilities.

Key Market Players

• Life Pharma FZE
• Pharmax Pharmaceuticals FZ‑LLC
• Julphar Gulf Pharmaceutical Industries
• Vieco Pharmaceuticals FZCO
• ADCAN Pharma
• Neopharma Group
• Amber Lifesciences Pvt Ltd
• Catalent, Inc.
• Lonza Group Ltd
• Recipharm AB

By End User	By Region
Big Pharmaceuticals Small and Mid-Size Pharmaceuticals Generic Pharmaceutical Companies Others	Dubai Abu Dhabi Sharjah Rest of UAE

Report Scope:

In this report, the UAE Contract Manufacturing Organizations Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• UAE Contract Manufacturing Organizations Market, By End User:

• Big Pharmaceuticals
• Small and Mid-Size Pharmaceuticals
• Generic Pharmaceutical Companies
• Others

• UAE Contract Manufacturing Organizations Market, By Region:

• Dubai
• Abu Dhabi
• Sharjah
• Rest of UAE