Abraaj Group ventures into the Moroccan pharmaceutical industry - IFN

Abraaj Group ventures into the Moroccan pharmaceutical industry

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MOROCCO: The pharmaceutical industry in the MENA region is becoming increasingly attractive post-Arab Spring and in light of the changing geopolitical situation. According to a report published by the Economist Intelligence Unit, pharmaceutical sales in Morocco, Jordan, Egypt, Turkey and Saudi Arabia are expected to amount to a combined retail value of US$35.8 billion in 2016. Dubai-based private equity investor Abraaj Group, which operates in growth markets, has recently announced its investment in Steripharma, a Moroccan pharmaceutical company which markets and manufactures pharmaceutical products. Abraaj, through one of its funds, will help to boost Steripharma’s export capabilities to the North and Sub-Saharan Africa. The venture will also assist in the company’s growth plan of constructing a new plant to increase its production capacity. Commenting on the transaction, Ahmed Badreldin, Abraaj’s senior partner and head of MENA operations, said: “Steripharma is among the best performing sectors in Africa; the industry has been growing at a steady rate over the past few years and this momentum is expected to continue in tandem with overall economic growth being witnessed in Africa.” He further explained that the strong demand in Morocco’s pharmaceutical market has created the opportunity to develop high-quality, GMP (Good Manufacturing Practice)-level products at an affordable price. Abraaj has stakes in over 30 companies across the MENA region and has approximately US$7.5 billion in funds under management. In 2006, the investment firm launched a US$2 billion Shariah compliant growth and infrastructure fund due to mature in 2016. With extensive experience in the healthcare sector, Abraaj currently has investments in nine hospitals, as well as in pharmaceuticals, diagnostics, and medical devices manufacturing.