The insulin production plant project in Abu Dhabi, United Arab Emirates (UAE), is a strategic initiative aimed at producing insulin based on human genetic engineering for the entire Middle East market. This project is of considerable importance for the further development of the healthcare sector in the UAE and the wider region.
Financially, the total capital requirements for the investment and operation in the first four years amount to 800 million euros. The plant is designed to produce 400 kg of crystalline insulin per year at full capacity, which corresponds to 3.3 million insulin sets per year. Although initial losses are projected in the first few years of operation, the business plan shows a transition to substantial profitability and positive cash flows in subsequent years.
The Middle East and North Africa (MENA) insulin market is characterized by a rapidly growing prevalence of diabetes. The facility is strategically positioned to address some of this critical healthcare need while strengthening regional healthcare and the UAE's economic diversification. The strong support from the UAE government underlines the project's alignment with national and regional health strategies.
The project to build an insulin production plant in Abu Dhabi, UAE, is a comprehensive project that envisages the establishment of a new insulin production facility as well as a filling and packaging plant. The focus is on the production of insulin using human genetic engineering to meet the growing demand in the entire Middle East market. The underlying business plan covers a period from 2024 to 2043.
The initiative for this project comes from Project Management Corp. from Germany. A renowned and experienced German pharmaceutical specialist has been commissioned as the general contractor for the EPCQ (Engineering-Procurement-Construction-Qualification) services. The choice of Abu Dhabi as a location is strategically justified: The region not only offers potential building sites and a well-developed transport infrastructure, but also ensures the supply and disposal of the technical infrastructure of a modern pharmaceutical plant. In addition, Abu Dhabi is described as an attractive place to live with appealing social and cultural offerings, which makes it easier to recruit qualified personnel.
1.2 Justification and strategic importance for the UAE healthcare sector
Diabetes is a chronic condition that occurs when the body does not produce enough insulin or cannot use it effectively. Without proper treatment, this can lead to serious, life-threatening complications that affect the heart, blood vessels, eyes, kidneys, and nerves. Insulin is essential for the survival of people with type 1 diabetes and is also often used to treat type 2 diabetes. The establishment of local insulin production is therefore crucial to meet this critical health need in the region.
The project is highlighted as being of "great importance for the further development of the health sector in the United Arab Emirates and the Middle East". Producing insulin locally reduces dependence on imports, making regional healthcare safer and more self-sufficient, especially for a life-saving drug. This strengthens the resilience of the supply chain and protects the population from potential bottlenecks or price fluctuations in the international market.
The significant investment in a state-of-the-art pharmaceutical production facility, such as the insulin factory, with strong government support, indicates a deliberate strategy by the UAE to diversify its economy and reduce dependence on hydrocarbons. This commitment to healthcare and cutting-edge technology is a clear sign of building knowledge-based industries. The project thus not only serves to meet a healthcare need, but also positions the UAE as a regional pioneer in advanced manufacturing and a center for pharmaceutical innovation. This can attract a skilled workforce and foster a high-quality ecosystem. Focusing on local production of a critical, life-saving drug in a region with high diabetes prevalence is a strategic step to improve health security. This reduces vulnerability to global supply chain disruptions or geopolitical tensions and underscores commitment to public welfare and resilience in the delivery of essential medical goods.
The project enjoys the explicit support of the UAE government, in particular His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and High Technology. Close cooperation with the Ministry of Industry and High Technology is essential for the implementation of the project and is already underway successfully.
The most important players and their roles are clearly defined: Project Management Corp. from Germany acts as initiator and project sponsor. An experienced German pharmaceutical specialist was appointed as the general contractor for the EPCQ services to ensure the turnkey handover of the entire plant, including the procurement of all necessary licenses and operating permits, validations, staff training, test runs and operational management in the first year of production. Other parties on standby awaiting final financing confirmation and government approvals include technology and operations licensors (whose discussions have already been successfully concluded), process engineering companies, equipment manufacturers, land acquisition specialists, operators, and insurance and guarantors.
2.1 Global and regional diabetes landscape (focus on the MENA region)
Diabetes is a widespread chronic disease worldwide, affecting millions of people, with significant increases predicted in all regions. The Middle East and North Africa (MENA) region has a particularly high prevalence: in 2019, 55 million people in this region had diabetes, and by 2021, this number had risen to 76 million adults aged 20 to 79. The regional prevalence was 12.8% in 2019 and is expected to increase to 14.2% by 2030 and 15.7% by 2045.
One alarming aspect is the high rate of undiagnosed cases: in 2019, nearly half (45%) of diabetics in the MENA region were undiagnosed, putting them at increased risk of harmful and costly complications. For the UAE specifically, 64% of diabetes cases in 2021 were undiagnosed. Diabetes is expected to lead to nearly 418,900 deaths in the MENA region in 2019.
In addition to diabetes, impaired glucose tolerance (IGT) is also a growing problem; In 2019, 1 in 12 people had IGT, with an 82% increase projected by 2045. Hyperglycemia in pregnancy also affects 1 in 9 live births in the region.
2.2 Projected growth of diabetes and insulin demand
The number of people with diabetes in the MENA region is expected to increase to 108 million by 2045, an increase of 96% compared to 2019. This is the second-highest projected increase among IDF regions after Africa. Healthcare spending on diabetes treatment in the MENA region was $25 billion in 2019 and is expected to increase by 55% to $39 billion by 2045.
2.3 Analysis of insulin demand and market coverage by the plant
The primary target market for the insulin production plant is the Middle East. The planned production capacity of the plant is expected to meet the needs of approximately 0.7 million diabetics. By 2027, when the facility is expected to reach its full production capacity of 400 kg of insulin, the estimated number of diabetes patients in the UAE and its immediate neighbors will exceed 32 million. This illustrates that the factory will meet an important but not all of the regional demand, indicating significant remaining market opportunities.
The countries with the highest number of diabetics in the MENA region in 2019 were Pakistan (19.4 million), Egypt (8.9 million), Iran (5.4 million), Saudi Arabia (4.3 million) and Sudan (3.7 million). These countries represent significant potential markets for the production of the plant.
The high rate of undiagnosed diabetes, especially the 64% in the UAE, indicates a sizable, as yet untapped pool of patients. With improved access to health care and awareness, a large proportion of these undiagnosed individuals will eventually receive a diagnosis and require treatment, including insulin. This represents an inherent, long-term growth driver for insulin demand beyond current diagnosed prevalence rates. The market opportunity is therefore greater than the current statistics suggest, as it involves significant latent demand. This also highlights a societal benefit of the factory that goes beyond economic returns by enabling better health outcomes when more people are diagnosed and treated.
The projected average selling prices per set increase over time (e.g. from 108 euros for 2023-2026 to 143 euros for 2035-2041). This, combined with the high and growing demand (96% increase in diabetics by 2045) and the critical nature of insulin, suggests that the factory could have significant pricing power and market stability. Rising health care spending on diabetes further underpins the ability to sustain these price increases. The strong demand fundamentals and essential nature of the product provide a robust revenue stream and some immunity to typical market fluctuations, which contributes to the long-term financial viability of the project.
Since the factory's production will only cover about 0.7 million diabetics, while the total patient population in the UAE and immediate neighboring countries is expected to exceed 32 million by 2027, the factory will only meet a fraction of the total regional demand. This large unmet demand secures a strong market for the entire production of the factory, minimizes sales risk and potentially creates opportunities for future expansion or additional production lines. It also highlights the scale of the public health challenge that even a large factory cannot fully address on its own.
Table: MENA Diabetes Market – Key Statistics (2019-2045)
| Category | 2019 | 2030 | 2045 | Source |
|---|---|---|---|---|
| Adult population (20-79 years) | 426 million | 534 million | 687 million | |
| Number of diabetics (20-79 years) | 55 million | 76 million | 108 million | |
Insulin production in the planned facility will be based on human genetic engineering. The process is divided into two main phases: fermentation and a generation/purification phase. The final product is crystalline insulin, which is purified and vacuum-dried in a freeze-dryer before packaging and storage.
The plant will comprise two main production areas:
* Insulin production (API - Active Pharmaceutical Ingredient): A gross floor area of about7,000 m² is required for this area. The staff for this facility will comprise approximately 90 full-time employees. Insulin production is carried out continuously seven days a week.
* Fill & Finish Facility: This plant will mainly consist of a filling line with a capacity of 6,000 pieces per hour and a corresponding packaging line. Processes such as weighing, checking, labeling and sterilizing are fully automated. The collection and manual packaging of the finished product for sale will be done manually. The required gross floor area is 8,000 m². The staff for the entire filling and packaging plant will comprise around 95 full-time employees. It operates in three shifts, six days a week, with two shifts for production and the night shift for cleaning and maintenance. A total of 300 working days per year are planned for this plant.
The decision to outsource the production of pens and needles in the start-up phase, rather than integrating them immediately, indicates a focus on the core competencies – insulin production and filling – during the critical start-up phase. This reduces initial capital expenditures, minimizes operational complexity, and allows the project to quickly meet its primary production goals. It also implies a potential future phase of vertical integration, if it seems economically viable. This tiered strategy demonstrates prudent risk management and smart capital allocation that prioritizes time to market and efficient scaling of the most complex part of operations, insulin manufacturing.
The description of the filling and packaging line emphasizes the high degree of automation, including weighing, controlling, labeling and sterilizing. This level of automation, combined with the "qualification" aspect of the EPCQ contract, underlines the importance of precision, consistency and adherence to strict pharmaceutical quality standards. High automation reduces human error, increases throughput, and ensures product quality and safety, which are paramount in pharmaceutical manufacturing. This approach allows the factory to meet international regulatory requirements and build trust in its products.
3.3 Production capacity, product configuration and purchased components
The total production capacity of the plant is 3,300,000 sets per year. This corresponds to a daily production of 11,000 thousand sets with an operating time of 300 days per year. The production target for crystalline insulin is 400 kg per year.
Each insulin set is configured as a unit consisting of 1 pen, 8 cartridges (each 3 ml of insulin with 100 IU) and 100 needles. The plant will produce 26.4 million cartridges annually. Certain components are bought: 3.3 million pens per year and 3.3 million units of hypodermic needles per year (100 units per unit). The production of pens and needles will be outsourced during the start-up phase.
The total land requirement for the project is around 50,000 m². The total full-time workforce will comprise 220 people. The increase in staff is planned gradually, from 3 people in 2024 to 206 people from 2027. Total personnel costs are expected to increase from €633,750 in 2024 to over €19 million by 2038.
Insulin production runs seven days a week, while the filling and packaging plant operates six days a week with a dedicated night shift for cleaning and maintenance. This differentiated schedule reflects the different nature of the processes: insulin synthesis, which is likely to involve continuous bioreactor processes, requires constant operation, while bottling can allow planned downtime for the necessary cleaning and maintenance to ensure sterility and longevity of the equipment. This plant design maximizes equipment utilization for the core biological process while ensuring optimal hygiene and equipment readiness for downstream sterile filling, reflecting a well-thought-out operational strategy for pharmaceutical manufacturing.
Table: Production capacity and output targets
| Key figure | Value | Unit | Source |
|---|---|---|---|
| Annual Production Capacity | 3,300,000 | Sets | |
4.1 Total Investment Required and Capital Structure
The total funding required for the project amounts to €800,000,000. This amount covers the investments and operating costs for the first four years. The breakdown of investments shows that €430,000,000 is earmarked for the turnkey factory (EPC) and €370,000,000 for start-up and operating costs in years 1 to 4.
The financing model provides for an equity ratio of 54% (€432,000,000) and a primary financing loan (loan 1) of 46% (€368,000,000). The conditions for Loan 1 include an interest rate of 3.50% over a term of 10 years, with a grace period of 4 years.
The total production costs at full capacity (excluding personnel, depreciation, etc., based on ) amount to €122,475,000 per year. These are made up of: raw materials (€43,560,000), energy/media (€2,850,000), chemicals (€825,000) and other materials such as pens/needles (€75,240,000).
The production costs per set are 53.41 €. Of this, €40.83 is spent on raw materials, energy, water and waste, including purchased pens and needles. The personnel costs amount to 4.73 € per set, and other operating costs (service, maintenance) to 7.85 € per set.
A simplified representation of the annual cost at full capacity (based on) shows a total cost of €181,000,000. These include the purchase of needles and pens (€82,500,000), personnel costs (€16,000,000), operating costs (€51,000,000), maintenance and repair (€10,500,000) and depreciation (€21,000,000).
The average selling price per set is staggered over the years and rising continuously: from €98 in 2022 to an average of €108 for 2023-2026, €119 for 2027-2030, €130 for 2031-2034 and €143 for 2035-2041.
Total revenue at full capacity is projected to be €356,400,000 per year (for 3.3 million sets). This turnover is made up of €214,500,000 for 3ml cartridges, €42,900,000 for needle sets (100 pieces) and €99,000,000 for pens.
4.4 Profitability Analysis and Cash Flow Projections
The project forecasts losses before taxes (net income pretax) in the first years of operation: -€14,426 in 2024, -€13,514 in 2025, -€52,313 in 2026 and -€181,557 in 2027. The transition to profitability begins in year 5 (2028) with a positive pre-tax profit of €152,797 and continues to increase in subsequent years, peaking at over €221,000,000.
The net profit as a percentage of sales is in negative territory in the early years, reaching an average of 56.55% at full capacity. In peak years, it can reach over 87% (e.g. 87.39% in 2028). It should be noted that this high percentage may reflect a specific profit calculation (e.g., gross profit margin) or a highly optimized cost structure after the initial investment. The more detailed "Net Income Pretax" figures are more meaningful for overall profitability. For example, in 2028, net income pretax is €152,797,000 on revenue of €355,740,000, which translates to a profit margin of around 43% – a realistic but still very strong figure.
The EBITDA and EBIT figures show similar trends, reflecting the start-up phase and subsequent operational efficiency. The repayment of loan 1 will start in year 5 (2028) with €61,333,333 per year, after a four-year grace period.
Cash flow is negative in the first few years (e.g. -€14,426 in 2024) and then develops into a significant positive cash flow (e.g. €148,723 in 2028). Cumulative cash flow becomes positive in 8 (2031) and grows to over €1.7 billion by 2043.
The four-year grace period for Loan 1 is strategically aligned with the start-up phase of the project. During this period, the factory is not yet in full commercial production (0 sets in 2024, 500,000 in 2025, 3.3 million from 2026) and losses are forecast. This structure minimizes the financial burden during the critical initial phase of operations and allows the project to build revenue streams before debt service begins. This financial structuring indicates a well-planned approach to managing liquidity and ensuring project stability at the most vulnerable stage, reflecting confidence in long-term viability.
Even with a more conservative interpretation of the profit margin (e.g., a pre-tax profit margin of approximately 40-50% at full capacity), the project demonstrates robust economic viability and strong potential for investor returns, driven by high demand and effective cost management. The cumulative cash flow, which will turn positive in 8 (2031) and grow to over €1.7 billion by 2043, indicates significant long-term value creation. The initial investment is substantial, but the projected cash generation over two decades points to a highly profitable company with accelerating earnings once operational stability and full capacity are reached. This project is designed for sustainable profitability and significant value creation, making it an attractive long-term investment that is in line with the strategic national development goals.
Note: The data for the cumulative cash flows in the table are from , page 6, and have been rounded or interpreted for better readability, as the original table was incomplete in some rows.
5. Project Implementation and Governance
5.1 Organizational Structure and Roles of Key Actors
The implementation of the project is characterized by a clear organizational structure and defined roles of the key actors. The Project Management Corp. from Germany acts as initiator and project management organization. An experienced German EPCQ specialist was commissioned as general contractor. His role is crucial as he is responsible for the turnkey handover of the entire factory, including obtaining all necessary licenses and operating permits, performing validations, training personnel, test runs and operational management in the first year of production. This ensures central responsibility for the complex construction and commissioning phases.
The UAE government plays a supporting and regulatory role. Close cooperation with the Ministry of Industry and High Technology is crucial and is already underway. The project is explicitly supported by the UAE government, in particular by His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and High Technology. The government permits are a prerequisite for the start of the project. Other parties on standby include technology and operations licensors (whose discussions have already been successfully concluded), process engineering companies, equipment manufacturers, land acquisition specialists, operators, and insurance and guarantors.
Hiring a "well-known and experienced German pharmaceutical specialist" as EPCQ contractor for a "turnkey factory" significantly minimizes the risk involved in project implementation. A turnkey contract means that the contractor takes responsibility for all aspects from engineering to qualification and delivers a fully functional facility. This reduces the burden and risk on Project Management Corp. in complex pharmaceutical facility construction and regulatory compliance. This approach ensures high construction and compliance standards by leveraging international expertise to mitigate the technical and regulatory challenges of pharmaceutical manufacturing, increasing the likelihood of on-time and on-budget delivery.
5.2 Project Timeline: Operational Readiness and Full Capacity Milestones
The project has already reached a stage where its technical and economic feasibility has been demonstrated. The final acceptance of the factory is planned 35 months after the start of the project, which means that the plant is ready for commercial production. The start of operations is planned for 36 months after the capital is available. Full production capacity is expected to be reached 12 months after the start of operations, which means that this will be approximately 48 months after the availability of capital. The detailed schedule includes phases for design, construction, commissioning and performance testing.
5.3 Permits, Licenses and Regulatory Aspects
Government approvals are critical to project progress and are taken for granted. The EPCQ contractor is responsible for obtaining all necessary licenses and operating permits. In addition, the EPCQ contractor will perform validations that are critical to quality assurance in pharmaceutical manufacturing. The successful conclusion of discussions with technology and operations licensors demonstrates progress in securing the intellectual property and operational expertise required in a regulated industry.
The repeated emphasis that the project is "ready to start" only "after final government approval and final financial assurance" underlines that despite proven technical and economic feasibility and existing partnerships, the final financial commitment is the decisive trigger. This indicates that the capital raising or final commitment from investors/banks is still pending or finalized. This points to the final hurdle for a project of this magnitude. Although government support is strong, financial closure remains a critical factor in determining the exact start date and subsequent adherence to the schedule.
6.1 Summary of project strengths and opportunities
The Abu Dhabi insulin production plant project has several strengths and opportunities. It benefits from strong market fundamentals driven by a rapidly growing and largely underserved diabetes population in the MENA region, ensuring robust demand for insulin. The project has a high strategic national significance as it is in line with the UAE's vision of economic diversification and self-sufficiency in healthcare, as evidenced by the strong government support. The application of human genetic engineering for insulin production positions the facility at the forefront of pharmaceutical manufacturing.
Despite initial losses during the start-up phase, the financial projections show strong long-term profitability and cash flow generation, supported by a favorable credit structure. The implementation of the project is secured by cooperation with experienced international partners, such as the German EPCQ specialist for turnkey delivery, which ensures high quality standards and compliance.
6.2 Initial observations on long-term sustainability and impact
The demographic and health trends in the MENA region suggest that the demand for insulin will remain strong for decades, providing a stable market for the plant's production. The project has the potential to establish Abu Dhabi as a major regional centre for pharmaceutical production and to attract further investment and talent in the life sciences sector. Beyond financial returns, the factory will contribute to better public health outcomes through improved access to essential medicines and the creation of highly skilled jobs. The fact that the factory will serve only a fraction of regional diabetes patients suggests inherent scalability and the potential for future expansion phases to meet growing demand.
Based on the comprehensive analysis of market opportunities, robust operational planning and strong financial forecasts, coupled with significant government support and a low-risk implementation strategy, the Abu Dhabi insulin production facility project represents a highly viable and strategically important investment that promises significant long-term returns and positive societal impact.
