The Middle Eastern life sciences sector is entering a transformative period of mergers and acquisitions, driven by ambitious national strategies and substantial government investments in biotechnology infrastructure. According to a comprehensive analysis by Grand View Research, this acceleration in deal-making activity is directly tied to the Gulf region’s strategic pivot toward advanced therapies, biologics manufacturing, and supply chain localization initiatives.
Key national visions including Saudi Arabia’s Vision 2030 and the UAE’s Life Sciences Strategy are catalyzing this movement, positioning the region for significant consolidation ahead of the World Health Expo 2026 in Dubai. The report identifies substantial market growth projections, with the Middle Eastern healthcare Contract Development & Manufacturing Organisation (CDMO) market expected to nearly double from $6.27 billion in 2024 to approximately $11.91 billion by 2033, representing a compound annual growth rate of 7.5%.
Dubai has emerged as a central hub in this transformation, leveraging its strategic geographic position, regulatory frameworks, and investment incentives to attract cross-border partnerships. The city’s combination of free-zone advantages, logistics infrastructure, and access to global talent positions it as an ideal coordination center for regional M&A activities.
The analysis highlights particularly explosive growth in specialized segments, with the cell therapy raw materials market projected to expand nearly fourfold from $39.2 million to $169.8 million by 2033, achieving one of the highest global growth rates at 17.8% CAGR. While small molecules currently dominate CDMO revenues at 36%, strategic priorities are shifting toward biologics, biosimilars, and cell-based therapies.
Swayam Dash, Managing Director of Grand View Research, emphasizes that “localization 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.” This fundamental shift is creating compelling opportunities for global players seeking access to the region’s growth while supporting Gulf governments’ capability development objectives.
The report notes potential challenges including regulatory harmonization delays and specialized talent gaps that could impact execution timelines for major cross-border transactions. Despite these considerations, the overall trajectory indicates strong momentum toward establishing the Middle East as both a consumer and producer of advanced therapies, with M&A activity serving as the primary catalyst for this transformation.