Domestic pharmaceutical, bio, and digital healthcare companies are increasingly heading to the 'desert.' They are expanding their presence by participating in exhibitions held in the Middle East to promote their products or announce local market entry.
On January 16 (local time), at the Korea-UAE Business Forum held at the Rixos Marina Hotel in Abu Dhabi, UAE, Marwan Abdulaziz Janahi, CEO of Dubai Science Park, and Jung Hyun-ho, CEO of Medytox (from left), signed an MOU for the construction of a toxin finished product factory. [Photo by Medytox]
According to the industry on the 7th, Medytox, a botulinum toxin (BTX) formulation company, announced that it successfully completed its participation in the 'Dubai International Dermatology & Laser Conference and Exhibition 2023' (Dubai Derma) held in the United Arab Emirates (UAE) from the 1st to the 3rd of this month. At this conference, Medytox exhibited 'MT10109L,' a non-animal liquid toxin formulation targeting the Middle Eastern market, and plans to enter the market with this product, which is awaiting halal certification.
Earlier, in January, Medytox laid the groundwork for establishing a toxin factory in Dubai. The company signed a memorandum of understanding (MOU) with Dubai Science Park, owned by the Dubai government-owned Tecom Group, regarding the construction of a toxin finished product factory. Through this MOU, Medytox plans to build a production facility based on MT10109L locally in Dubai. If Medytox’s Dubai factory is built as planned, it will be the first overseas production base for a domestic toxin company. Dubai Science Park also conducted a due diligence inspection of Medytox’s Osong factory at the end of last month to support the establishment of the local toxin factory.
Digital healthcare companies have also begun targeting the Middle Eastern market. Lunit, a medical artificial intelligence (AI) solution specialist, announced that it supplied an AI imaging analysis solution for breast cancer diagnosis to Dubai Public Health Authority last month in collaboration with multinational company Agfa Healthcare. The Dubai Public Health Authority is a public medical institution established by the Dubai government in 2021 to support all medical institutions in Dubai and enhance the competitiveness of medical services.
Lunit plans to collaborate with Agfa Healthcare to expand into neighboring Middle Eastern countries. Earlier, at the beginning of last year, Lunit signed an export contract for its AI imaging analysis solution 'Lunit Insight MMG' with Roche Middle East, marking its first step into the Middle Eastern market. Since then, it has secured major Middle Eastern countries such as the UAE, Egypt, and Saudi Arabia as customers, intensifying its efforts to penetrate the Middle Eastern market.
Additionally, Osstem Implant participated in the 27th 'AEEDC Dubai,' known as the world’s second-largest dental equipment exhibition, held on the 7th of last month, setting up a booth. Osstem Implant explained that the UAE Deputy Prime Minister and the Director-General of Dubai Health Authority visited this booth. Around the same time, SD Biosensor, a specialist in in vitro diagnostics, participated in 'MEDLAB 2023,' a diagnostic and medical device exhibition held in Dubai. Huons Meditech and Plasmapp also participated in the 'Arab Health' medical device exhibition held in Dubai in January.
The recent surge of domestic companies entering the Middle Eastern market coincided with President Yoon Suk-yeol’s visit to the UAE. During the 'Korea-UAE Business Forum' held in Abu Dhabi in January, when President Yoon visited the UAE, a total of 24 MOUs and contracts were signed, including the MOU for Medytox’s toxin factory construction in Dubai. Additionally, the UAE sovereign wealth fund Mubadala announced plans to invest $30 billion (approximately 37.3 trillion KRW) in domestic companies. Mubadala is known to be seeking investments in life sciences sectors such as pharmaceuticals and bio.
The growing trend of the Arab medical market is also influencing domestic companies to explore entry into the UAE. According to the Korea Health Industry Development Institute, the sales scale of healthcare facilities in the UAE is expected to reach $34.4 billion (approximately 44.6 trillion KRW) this year. The sales of healthcare facilities are projected to grow at an annual rate exceeding 7% since 2020. The UAE pharmaceutical market is also expected to maintain an annual growth rate close to 6% from this year onward.
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