KUWAIT CITY, March 10: A government study has revealed plans to expand support for Kuwait's medical industries sector, proposing an incentive program aimed at assisting local drug producers and encouraging them to invest more capital for accelerated growth. The study confirmed that the government is working on developing a comprehensive pharmaceutical manufacturing strategy, focused on creating a competitive, export-oriented industry. This will be achieved by establishing manufacturing facilities accredited by the Ministry of Health and international health organizations, in addition to facilitating technology transfer and localization within the medical sector.

The study also highlighted efforts to attract multinational pharmaceutical companies, localize the production of strategic medicines and medical supplies, and provide training for the local workforce to boost "Kuwaitization" in the sector. It emphasized that the medical industries sector in Kuwait is still in its early stages, with only a limited number of medical manufacturing companies. As a result, imports currently cover the majority of local demand.

The study pointed out that local producers face tough competition from more established regional players, particularly in Saudi Arabia and the UAE. However, it predicted that the local, regional, and global pharmaceutical markets will experience rapid growth in the near future, offering opportunities for local manufacturers.

One of the key findings of the study is that the total investment in Kuwait's pharmaceutical and medical supplies sub-sector is currently only 80 million dinars, a relatively small figure considering the importance of this sector. This limited investment is attributed to the distance of Gulf countries, especially Kuwait, from the pharmaceutical and medical supplies industries.

Currently, only two factories operate in Kuwait's pharmaceutical and medical supplies sector. These two facilities, which opened between 1987 and 1988, are the only ones in the country, indicating a lack of growth or expansion within the industry over the past 36 years.

The study outlined ten key government objectives aimed at supporting the development of the medical industries sector in Kuwait:

- Concentrate on high-quality drug formulations while avoiding the manufacture of active pharmaceutical ingredients, as Kuwait is not yet able to compete globally in this area. It also noted that it is too early to invest heavily in biopharmaceuticals, which require more facilities, talent, and scale. Joint ventures with global companies may be the best option for localizing biosimilar production for regional and global markets.

- Invest in localizing the packaging materials for medicines and medical supplies as a profitable opportunity to reduce costs for local manufacturers and suppliers.

- Leverage “offset programs” to attract multinational companies to establish production facilities or form joint ventures with local businesses, enabling technology transfer.

- Expand supply contracts with public and private healthcare providers to support local manufacturers.

- Facilitate trade with key regional players such as Saudi Arabia and the UAE, reduce the cost of imported goods for pharmaceutical manufacturers, and open new export markets.

- Provide an incentive and support program to encourage local drug producers to invest more capital for accelerated growth.

- Stimulate the adoption of promising technologies, including improved process chemistry, continuous manufacturing, and modular factory design, to lower costs and increase productivity.

- Encourage Gulf cooperation to form pharmaceutical clusters, which will allow for the production of high-quality medicines at competitive prices, as opposed to spreading efforts across several smaller initiatives.

- Strengthen the collaboration between research centers and industry, fostering applied research and development through specialized clusters.

The study emphasizes the need for a strategic shift to foster the growth of Kuwait's pharmaceutical and medical manufacturing sector, with a clear focus on increasing local production, reducing dependency on imports, and positioning Kuwait as a competitive player in the regional and global markets.