The Middle East is expected to witness a significant rise in mergers and acquisitions across the life sciences sector as Gulf countries ramp up efforts to build a globally competitive biotech and health technology ecosystem, according to new research from Grand View Research (GVR).
The study forecasts that the region’s healthcare Contract Development and Manufacturing Organisation (CDMO) market will nearly double from US$6.27 billion (AED23 billion) in 2024 to US$11.91 billion (AED43.7 billion) by 2033, representing a compound annual growth rate (CAGR) of 7.5 per cent.
The large and small-scale bioprocessing market is also set to expand from US$1.16 billion (AED4.26 billion) to US$2.44 billion (AED9 billion) over the same period.
Regional life sciences market gains momentum
According to GVR, the UAE’s Life Sciences Strategy and Saudi Vision 2030 are fuelling investment in advanced therapies, biologics, and supply chain localisation. These efforts are expected to drive a new wave of consolidation and joint ventures ahead of the World Health Expo (WHX) 2026 in Dubai.
“Dubai and the broader GCC now sit at the crossroads of science, capital and policy,” said Swayam Dash, Managing Director of Grand View Research. “That convergence is catalysing a wave of acquisitions and joint ventures. Localisation is no longer just about cost – it’s about creating a viable ecosystem for advanced therapies that can serve the region and export beyond it.”
The report highlights that small molecules still account for about 36 per cent of CDMO revenues, but biologics, biosimilars, and cell-based therapies are now driving investor interest.
Outsourcing is accelerating as drugmakers seek lower costs, faster time-to-market, and stronger supply chain resilience. The cell therapy raw materials market is forecast to grow almost fourfold, from US$39.2 million (AED144 million) in 2024 to US$169.8 million (AED623.5 million) by 2033, with one of the world’s fastest CAGRs at 17.8 per cent.
GVR positions Dubai as a key regional hub, citing its strategic location between Asia, Europe, and Africa and its free zone frameworks that attract biotech investment. “Dubai is becoming an anchor point for regional life sciences supply chains – from clinical trials to small batch biologics manufacturing,” Dash said.
Despite the strong growth outlook, the report notes that delays in regulatory harmonisation and a shortage of specialised talent could challenge large-scale cross-border deals. Nonetheless, GVR expects the Middle East to transition from being a buyer of advanced therapies to a producer, with M&A serving as a critical catalyst.
