Rapid growth in Middle East pharmaceutical sector drives demand for innovative lab spaces and real estate solutions.
Fueled by significant government investments in R&D and manufacturing infrastructure, and a strategic push towards greater local innovation and production, the Middle East’s life sciences industry is poised for substantial growth, according to JLL’s latest EMEA Life Sciences Industry Perspective and Cluster Report.
The region’s pharmaceutical market is projected to reach US$36 billion by 2028, and this robust expansion, set for a Compound Annual Growth Rate (CAGR) of 7.7% from 2023, is further amplified by digital transformation initiatives and comprehensive industrialization strategies across the Gulf Cooperation Council (GCC). As the life sciences market develops globally, countries in the GCC are accelerating their capabilities in the sector to boost innovation, reduce import reliance, and diversify their economies.
The JLL report, which explores the key drivers shaping EMEA’s life sciences industry and its impact on real estate markets, has included a high-level overview of the Middle East for the first time. The report reveals that the GCC’s pivot towards becoming a global hub for life sciences innovation, research, and production is boosting demand for specialized real estate, including adequate office spaces for R&D and digital health, and manufacturing locations that require warehouse and distribution assets.
Mireille Azzam, Head of Strategic Consulting, JLL Middle East and Africa (MEA) said: “Innovation is critical for success in the life sciences industry, and the GCC is building self-reliance by incubating innovative ventures and creating a collaborative environment to scale research and expand its pool of skilled workforce. From flexible lab designs and resilient building systems, the increased focus on creating spaces primed for scientific breakthroughs and growth is directly translating into a dynamic real estate market. The growing demand for purpose-built facilities will support groundbreaking research, advanced manufacturing, and drive digital transformation, laying a strong foundation for the future growth of the region’s evolving life sciences ecosystem.”
Amidst increasing global competition and tariff uncertainty, JLL’s latest report highlights several overarching trends shaping the life sciences real estate landscape across EMEA. Artificial Intelligence (AI) and venture capital are driving demand for next-generation labs, and the report highlights AI’s dual impact in accelerating scientific discovery and revolutionizing real estate management through increased efficiency from research to distribution. New supply delivered by investors is progressively addressing historical lab space shortages, shifting away from public or owner-occupier driven models, with top-tier assets in prime locations expected to prevail.
The JLL report highlights that the sector’s commitment to sustainability is driving demand for greener lab buildings. These dynamics underscore how life sciences clusters, from Europe to the Middle East and Africa, possess distinctive strengths, with locations like the Golden Triangle, Johannesburg, and Riyadh leading in biopharma research, while others excel in digital health or manufacturing.
The GCC’s increasing commitment to life sciences
JLL’s analysis of the major life sciences city-clusters in the GCC reveals significant transformations across the three prominent subsectors of Biopharma R&D, Digital Health and Tech R&D, and Pharmaceutical Manufacturing.
Driven by the increasing prevalence of chronic diseases and a focus on personalized medicine and genomics research, JLL notes a profound shift in the Biopharma and drug discovery sector. As targeted therapies gain prominence, government investments in local generic drug manufacturing and biosimilar development are accelerating, with innovative research in cell and gene therapy also primed for significant growth. Dubai Science Park in the UAE and Qatar Science and Technology Park have emerged as regional hubs for biopharma R&D, while Saudi Arabia’s position in the regional drug discovery landscape is strengthened through strategic partnerships and ongoing investments in pharmaceutical research and manufacturing.
To improve accessibility, efficiency, and patient outcomes in the healthcare sector, GCC governments have prioritized digital transformation, driving growth in telehealth, remote patient monitoring, and AI-powered diagnostics. The emergence of health-tech startups and a growing emphasis on preventive healthcare are also contributing to sector growth. Regional hubs such as the UAE’s Dubai Healthcare City and Healthpoint in Abu Dhabi, and Saudi Arabia’s NEOM project are driving the surge in digital health adoption and investment, and fostering innovation and attracting talent.
Through investments in industrial parks and by providing incentives for manufacturers, GCC governments are diversifying the region’s Pharmaceutical Manufacturing sector. Alongside the adoption of advanced manufacturing technologies to boost efficiencies, growth in this sector is driven by affordable energy, strategic geographic locations, and increasing local content requirements. The UAE’s Jebel Ali Free Zone and Dubai Industrial City, alongside Saudi Arabia’s King Abdullah Economic City and Sudair Industrial City, stand out as key manufacturing hubs. These locations offer advanced infrastructure and logistical advantages, successfully attracting both domestic and international pharmaceutical companies.
The region’s commitment to life sciences is further bolstered by its strong academic credentials, as institutions such as King Saud University in KSA, Qatar University, and the United Arab Emirates University earn top spots in global life sciences university rankings.