· ADIH Launches multi-million Wellpharma Health Care project
· 1st Healthcare investment initiative
· Diversified product offering within real economy sectors
Abu Dhabi, UAE; Abu Dhabi Investment House (ADIH) announced yesterday the successful closing of its first health care initiative, Wellpharma I.V. Solutions fund, with the objective of financing the development of an intravenous (I.V.) solutions production and distribution facility within the Industrial City of Abu Dhabi. ADIH obtained all necessary official approvals and permits including those for the identified land where the project will be developed.
ADIH started initial designs of the facility with a long term vision including plans to address other growing pharmaceutical products where a wide range of concentrated research is already in place. The project enjoyed a growing demand with an investor base from Europe and the GCC.
Rashad Y. Janahi, Managing Director of ADIH commented, ‘we are pleased with the successful start of this project. We believe this provides a unique investment opportunity given that the project will fill the supply gap of intravenous solutions in the GCC region as well as gain competitive advantage over the local manufacturers through: modern production facility equipped with an European technology, patient and environment friendly packaging format, and wide range of product portfolio customized to the requirements of the region. Launching this healthcare initiative is part of our strategy to offer diversified products within real economy sectors. This project reflected the true cooperation between the private and public sectors which I would like to thank Zonescorp for their support, SEHA, Abu Dhabi Health Authority, Ministry of Health and the Department of Economic Development.’
The Sharia-compliant project was launched earlier this year based on extensive local and regional studies on gaps in supply and demand of I.V. solutions and taking advantage of the competitive prices of raw material and imports. The GCC region is expected to face an unparalleled, unprecedented and consistent rise in demand for healthcare over the coming years. It is estimated that total healthcare spending in the region will reach US$60billion in 2025, up from US$18billion in 2008. No other region in the world is expected to witness such rapid growth in demand with simultaneous need to realign its healthcare systems to cater for such growth. According to market research, the global I.V. solutions market is projected to grow at 13.5% compounded annually from 2005 to 2013. The industry is expected to prosper at a very quick pace since the UAE is considered to be one of the most rapidly growing countries in the region, with the second highest per capita spending in the GCC. During the period 2003-2008 KSA presented the largest market share of IV Solutions in the GCC which reached 69% by end of 2008 of the total GCC demand. By 2017, KSA is expected to retain a slightly lower market share of 62% while the UAE is expected to increase its share to 18% of total consumption by the GCC. In the last 3 years, the I.V. solutions market in the UAE has been growing at a CAGR of 6.15%.
ADIH also stated that it plans to launch diversified product offerings within other vital industries including food production, green building and financial services. |