The UAE could be on the verge of a healthcare revolution – if we foster the right environment for biotech innovation.
By Ashwin Joshi, Director of startAD
As the UAE sets its sights on becoming home to 20 unicorns – privately owned startups valued at over $1 billion – within the next decade, it is crucial to support sectors poised for disruption. Among these, biotechnology (biotech) stands out for its huge potential. Combining the power of biology, genetics, and technology, biotech could address some of our most pressing healthcare challenges.
The integration of generative AI (GenAI) into this mix further amplifies the potential for rapid development, akin to the transformative impact of penicillin. GenAI promises to accelerate drug development, enhance patient care outcomes, and streamline administrative functions, making it a game-changer for the healthcare industry.
Abu Dhabi is uniquely positioned to become a global leader in this field. The emirate boasts world-class infrastructure, advanced data and genomics platforms, and a compact geographical footprint that facilitates rapid collaboration among key stakeholders. This matched by progressive economic policies that are attracting venture capitalists and international talent, creating a fertile ground for innovation.
This vision was underscored during this year’s Abu Dhabi Global Healthcare Week, which brought global attention to the emirate’s growing influence in health innovation. The recent announcement of ADIO’s Healthcare, Life Sciences, and MedTech (HELM) cluster further illustrates this momentum. The HELM cluster is projected to contribute more than AED94 billion to Abu Dhabi’s GDP, attract investments exceeding AED42 billion, and create approximately 30,000 new jobs by 2045 — a powerful signal of the emirate’s long-term commitment to building a globally competitive healthcare ecosystem.
Mind the gap
Despite these advantages, there are still gaps that need to be addressed. The complex nature of biotech, unevenly distributed talent, expensive development process and long lead times, creates inherent risks that deter early-stage investors. This chicken-and-egg scenario hinders the development of a robust pipeline of innovative companies.
As a consequence, the UAE’s biotech sector remains relatively underdeveloped compared to other industries, with relatively nascent of investment, expertise, and regulatory ecosystems compared to other developed markets. This gap is not due to a lack of resources or infrastructure, but rather the complex and capital-intensive nature of biotechnology itself.
The development of biotech solutions often begins in university labs, where researchers leverage grants and resources to conduct initial studies and establish proof of concepts. However, translating these discoveries into viable commercial products requires substantial funding, extensive regulatory approvals, and a long gestation period – hurdles that can deter investors unfamiliar with the intricacies of the field.
Bridging this gap is crucial, not only for the UAE’s economic diversification efforts but also for its ambition to become a global leader in healthcare innovation. By nurturing a robust biotech ecosystem, the UAE can unlock a wealth of opportunities, from developing cutting-edge therapies and personalized medicine solutions to driving cost efficiencies and reducing reliance on imported pharmaceuticals.
One promising initiative aimed at addressing this challenge is HealthX, a collaborative program between the Department of Health – Abu Dhabi and startAD, the startup accelerator powered by Tamkeen and anchored at NYU Abu Dhabi. Over the next year, HealthX will support over 10 to 15 cutting-edge life sciences projects and early-stage ventures, providing them with the resources, mentorship, and regulatory guidance they need to scale their innovations.
By fostering an environment that combines expertise, investment, and regulatory support, HealthX is one of the initiatives that is laying the foundation for a sustainable biotech ecosystem in the UAE. Aligning with the UAE’s broader strategy to lead in healthcare innovation, focus areas include optimizing drug development through AI, advancing personalized medicine, and improving therapeutic efficacy.
Relevant opportunities for founders and researchers include areas that have a low regulatory burden and faster approval timelines (including diagnostics and medtech), repurposed therapeutics, new drug delivery platforms, AI-augmented solutions and tools across research and diagnostics.
Our hope is that we can help lay the important initial groundwork for this success.
Next steps
The global biotechnology market was valued at $1.55 trillion in 2023 and is expected to grow at nearly 14% annually through 2030. This is not a niche sector – it’s a foundational industry of the future. For the UAE, investing in biotech is both a strategic imperative and an opportunity to lead on the global stage.
As we move forward, it is crucial to continue supporting research and development in universities and labs, as these institutions often serve as the birthplace of groundbreaking biotech solutions.
By fostering a supportive ecosystem that addresses the unique challenges faced by biotech startups, the nation can unlock a future where cutting-edge therapies, personalized medicine, and cost-efficient solutions become the norm. With the right combination of vision, collaboration, and strategic investment, the UAE can cement its position as a global leader in this vital field, shaping the future of healthcare for generations to come.
