DuBiotech and IDMA to promote two-way investment between UAE and India
Tell us more about Dubai Biotechnology and Research Park.
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| Marwan Abdulaziz |
The Dubai Biotechnology and Research Park (DuBiotech) is the only free zone in the Middle East which is dedicated to the life sciences industry. It was launched in 2005 under the patronage of Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
A member of TECOM Investments, DuBiotech accommodates the entire life sciences value chain by providing key facilities, investing in infrastructure and creating a unique free zone environment that incorporates industrial, academic, commercial and residential projects. The Park integrates tailored facilities such as the nucleotide lab complex, multi-purpose warehousing facilities, adaptable and premium offices at the DuBiotech Business Centre, as well as land to support the rigorous requirements of research and development (R&D), manufacturing, distribution, hospitality, residential, retail, healthcare and high value-added services.
DuBiotech partners enjoy special privileges such as 100 per cent foreign ownership, tax-free operations, and repatriation of profits, as well as effortless visa and license issuance procedures. It offers unique services that include regulatory affairs management, partner development, registration and licensing, in addition to leasing and government services to facilitate the growth of domestic and international companies operating in the park. Furthermore, DuBiotech hosts LEED certified green buildings which can support the rigorous requirements of scientific research and development.
At present how many companies are part of the cluster?
DuBiotech now hosts 95 international and local companies in the pharmaceutical, biotechnology, medical devices and agri-business segments. The presence of these companies at DuBiotech is contributing to the development of the cluster and the industry in the UAE.
How many Indian companies or subsidiaries of multinational companies have their operations at DuBiotech?
Dubai has transformed itself as a major hub for many biotech companies in the last few years. Most of these companies like Pfizer, Amgen, Genzyme, Bristol Meyers Squibb, Firmenich, and MerckSerono, have their base in DuBiotech where they use the Park as a base for their regional operations. It also hosts major Indian companies such as Sun Pharma, Wockhardt, Lupin, NeoBiocon, Life Cell and Vins Life Science.
Why do you want Indian biotech/ pharma companies to be part of DuBiotech? What subsidies is the Dubai government ready to offer?
India and Dubai enjoy a long history in trade and economic relations. India-UAE trade, valued at $180 million per annum in the 1970s, which is today in excess of $44 billion, which makes the UAE one of India’s leading trade partners. In bilateral trade – approximately 80 per cent is accounted for by Dubai alone. In fact, according to the Consulate General of India in Dubai, in 2011, India remained the largest trading partner for Dubai accounting for 19 per cent of Dubai’s foreign trade; amounting to $37.3 billion in 2011. Among the emerging economies, the Indian pharma industry is the largest and most advanced. DuBiotech would like to support the expertise of the Indian biotech companies in Dubai in order to explore opportunities for collaboration. Furthermore, Indian companies will find Dubai an ideal destination for business expansion in the Middle East that bridges the east with the west.
DuBiotech offers services in regulatory affairs management, partnership development, registration and licensing, leasing and government services to help companies set up their base with ease and achieve their respective commercial targets. The free zone allow partners to enjoy a strategic location coupled with world-class facilities and infrastructure, ranging from offices and laboratories to warehouses and land plots within a vibrant life sciences community.
It also offers tax advantages and services such as 50 years’ exemption from personal, income and corporate taxes, long-term land leases, 100 per cent foreign ownership and repatriation of profits. By offering these benefits, DuBiotech is the perfect place for any Indian company engaged in life sciences who is looking to expand their operations in the Middle East in general and particularly the Gulf Cooperation Council.
How strong is the infrastructure in DuBiotech and how further it will help the Indian companies?
All buildings in the free zone are constructed to support the rigorous requirements of scientific R&D, and are LEED certified green buildings. The free zone provides various options for companies depending on the type of activities they plan to conduct and the investment that they want to make. These options include warehouses, laboratories and the business centre, which is a perfect solution for small and medium businesses.
What basic criterias have you designed for establishing presence in DuBiotech?
We have created a number of standards to enable successful establishment of the company: first, we divide the segments of the industry. For example, we register companies that function in the following segments: biotech, medical, industrial, agricultural, environmental, equine/ animal/ marine, pharma, neutraceuticals, nanotechnology, medical devices, bioinformatics, and forensic science. We have even divided these segments into more detailed functions such as industrial biotech activities. This segment includes diagnostics, research and development for drug discovery, manufacturing, storage, sales and marketing, distribution, consulting/service providers, as well as industry specific training. We encourage companies at the Park to lead R&D initiatives. We are also in discussions with the federal health authorities to create specific regulations for such activities. Additional standards that are being considered at DuBiotech include commitment to educating the public and raising awareness on the need for science in each individual’s life. DuBiotech is in the process of collaborating with universities, medical research institutions, and non-governmental organisations in the UAE; with the aim of strengthening the biotechnology industry.
What benefits will Dubai get by signing the MoU with Indian Drug Manufacturers’ Association (IDMA) and why would you like to promote Indian formulation players?
India remains one of the leading countries in the field of biotech and pharma, which makes it essential to add such expertise to our current portfolio. The MoU will, therefore, encourage the establishment of joint ventures (JVs) between companies within DuBiotech and IDMA members, especially focusing on the small and medium size enterprises (SMEs) that account for 87 per cent of India’s total pharma by volume, which comprise a major part of total global production. DuBiotech can act as the ideal platform for SMEs to obtain the necessary global exposure in order to increase business prospects, thus, enabling them to become tomorrow’s multi-national corporations. DuBiotech and IDMA will promote two-way investment between the UAE and India within the life sciences industries. The MoU will also facilitate information sharing on direct investment and trade leads; knowledge and expertise exchange; joint participation in events; and mutual delegation hosting.
Besides getting entry into the GCC countries, which other markets can be accessed by Indian players?
DuBiotech is ranked by the Financial Times’ FDI survey among the top five global destinations and hosts regional headquarters for many international companies such as Pfizer, Firmenich, Maquet, MerckSerono, BMS and more. Dubai is also a major investor in other countries, allowing businesses to grow and diversify. Additionally, DuBiotech Partner Development Management Department is dedicated to facilitating mutual exchange of expertise; disseminating best practices and knowledge; and supporting companies to explore other global markets in order to build strong synergies between our clients and industry leaders.
How will DuBiotech and IDMA form a strategic alliance and what benefits will be shared between the parties as well as their members?
IDMA and DuBiotech are dedicated to the development of the pharma industry. Notably, a plethora of companies operating in DuBiotech are interested in the Indian market while Indian companies are looking to expand their footprint into the Middle East. Such companies will gain an opportunity to forge alliances as well as participate in knowledge and expertise exchange. We at DuBiotech believe that we can act as a facilitator and access point for companies to make the most of these opportunities.
Is the MoU only for IDMA members or is it for other pharma companies as well?
The MoU with IDMA is a tool to offer IDMA members direct access to DuBiotech. The MoU will facilitate collaborations and alliances between IDMA members and the DuBiotech community. However, establishing base in DuBiotech is open to all companies and associations from the global life science industry. DuBiotech is also supportive of other activities within the life sciences.
When is the MoU likely to be signed?
We are looking forward to signing the agreement as soon as possible so that we can engage with and support IDMA members. However, the MoU must go through a necessary approval process and the actual agreement may take some time to be finalised.
How much investment you have made so far?
DuBiotech has already built significant infrastructure and now features state-of-the-art laboratories and warehouses. In fact, infrastructure worth AED1.5 billion ($408 million) has already been constructed within DuBiotech. It took two years to construct the infrastructure and another two years to complete the buildings with development completing in 2010.
Which other markets are you keen to follow and why?
Our other targeted markets are China, Germany as well as North and South Korea as they hold high potential. Furthermore, our sense is that these target markets will align with our current business partners as well as new business partners who we hope will join us from India.
Why do you like to promote SMEs and mid-sized companies?
SME’s are an optimal option for companies interested in testing the GCC and MENA markets as well as for those with limited budgets. Additionally, DuBiotech provides flexible and reasonable offerings for SMEs to set up their presence within the region. In fact our ongoing support of SMEs within DuBiotech has resulted in regional recognition. In February 2012, Dimensions Healthcare (DHC), a dynamic and energetic SME was recognised by Dubai SME 100 as the number one from company among 72,000 SMEs.
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