The GCC pharmaceutical and biotechnology industry faces several challenges that impede its progress. One key challenge is that building research and development facilities and pharmaceutical factories requires significant capital and has a long payback period. Additionally, there’s a shortage of skilled professionals for new medicine research in the region.

Moreover, the high disposable income per capita and reliance on imported medicines, combined with a smaller market size compared to more mature countries, make it difficult for local and multinational companies to invest in R&D to develop innovative molecules for local manufacturing. 

The GCC nations have taken a resolute stance to elevate their investment in research and development and potentially surpass global benchmarks. For example, the United Arab Emirates has set forth an ambitious objective to allocate a greater proportion of their funds towards R&D. Presently, standing at 1.5% of the national GDP, there is a concerted effort to bridge the gap and align with the United States' commendable allocation of 3.5% of GDP to R&D.

Furthermore, by creating collaboration between academia, research institutions, and industry, the GCC aims to create a ecosystem for drug discovery and development. This includes providing sufficient funding for scientific research, encouraging public and private investment in R&D projects, and supporting research grants, fellowships, and scholarships.

The GCC is laying a solid foundation for its future in pharmaceuticals and biotechnology by solidifying its regulatory environment. This strategic initiative involves strengthening intellectual property protections to incentivize innovation and attract investment. These efforts not only benefit domestic entrepreneurs but also promote collaboration between universities and industry players. Furthermore, streamlined drug approval processes guarantee adherence to international standards. These reforms establish a mutually beneficial environment, making the GCC an attractive destination for both local and international pharmaceutical companies.