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Press Release
LAUNCHING THE PRODUCTION PROCESS IN ARWAN PLANT
Abdullah: 27 billion dollars is the size of the Arab drug market
Itani: the drug industry exports grew at a compounded rate of 14 percent
Beirut, on December 18, 2013 – Under the auspices of the Lebanese Minister of Health, Dr. Ali Hassan Khalil,
represented by the Director General of the Ministry, Dr. Walid Ammar, and in the presence of the Chairman of the
Investment Development Authority of Lebanon (IDAL), Engineer Nabil Itani, “Arwan Pharmaceutical Industries”
plant held an inauguration ceremony to launch its production process at 2:00 PM on Wednesday, December 18,
2013 at its headquarters in the region of Jadra, Caza of Chouf.
The Chairman of Arwan, Mr. Abdul Razak Abdullah, first confirmed that there are more than 300 drug plants in the
Arab world. He pointed out that the drug market size is almost 27 billion dollars, noting that the Arab national
production only reaches 56 percent and all the rest is imported.
Moreover, he explained that the drug market size in Lebanon amounts to nearly one billion dollars, knowing that
the national industry production is currently equivalent to 5 percent. Mr. Abdullah also stressed that there is a
high availability of human capital of pharmacists and chemists in Lebanon thanks to the scientific renowned
universities which are graduating the most competent students, as well as hospitals and physicians in the country,
all being recognized by the Arab world for being the best practitioners at the national level.
Abdullah discussed Lebanon’s openness policies as well as its geographical location in the heart of the Arab world,
which allows it to be the best hub for the drug industry in particular. He announced that Arwan’s goal is to be a
specialist in biotechnology products, such as specialized cosmetics that are rarely produced by plants in the Arab
world.
He then added: “By inaugurating this plant, we contribute to the creation of new job opportunities for Lebanese
youths. Our goal is to increase Lebanon’s exports related to the drug industry so as to reach 280 million dollars
annually and to affix the “Made in Lebanon” slogan to our high quality drug products.
Abdullah indicated that Arwan company is built over an area of 17,600 square meters, while its built-up area
amounts to almost 14,000 square meters. He added that 30% of this built-up area is being currently exploited for
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the benefit of Arwan plant 1, and the expansion plan includes the establishment of Arwan Plant 2 and 3
specialized in another group of specialized drug products.
Nabil Itani
Mr. Itani confirmed that the business environment in Lebanon has a good reputation and holds attractive
characteristics that offer promising opportunities in several economic sectors, knowing that it is mainly based on
Lebanon’s free economic system.
He declared that Lebanon enjoys one of the highest physician to population ratio, i.e. an average of 35 physicians
per ten thousand people, compared to a global average of 14 physicians, which makes Lebanon among the most
developed States. He added that the number of Pharmacy, Medicine, and Biology graduates reaches around 1500
annually.
He pointed out that the Middle Eastern and African markets are witnessing a growth estimated to be five times
higher than that of the developed countries’ markets by 2020, according to the population growth estimates in
this region and the increase of the population’s purchasing power.
He indicated that the Lebanese market is still far from the concept of self-sufficiency in relation to medicines,
noting that it largely depends on imports. He also highlighted that the market of drugs and pharmaceutical
products is very promising, knowing that it was estimated at around 1.3 billion dollars for 2012, marking an
increase of 6.5 percent compared to the year 2011. He added: “It is likely that this compound annual growth rate
reaches 7.7 percent by 2015. This obviously showcases the investment opportunities available in this sector, which
shall reduce the costs of imported drugs through the local manufacturing of some of their types under the license
of the mother company or the manufacturing of generic drugs.”
Itani declared that the recent years witnessed important investments in the field of drug manufacturing. Such
investments resulted in the growth of the production as well as export activities, where the Lebanese drug
manufacturing exports started to soar with a compound annual rate growing by 14%, from 16 million dollars to
31.5 million dollars from 2008 till 2012.
Itani announced that this plant will contribute to the achievement of the balanced development concept that we
have always aimed for. Being located in Jadra region, the plant will help the region thrive as an important
investment destination outside the capital. He called upon all municipalities to follow in the Jadra municipality’s
footsteps through cooperating with investors, fostering their initiatives and facilitating the execution of their
projects in order to promote regional development. He also called upon all officials and concerned parties to be
cooperative and exert every effort to support the implementation of the intellectual property code in an aim to
protect the rights of inventors, which will potentially encourage international companies and laboratories to
invest in Lebanon.
Dr. Ammar
Dr. Ammar declared that the Ministry of Health set forth stringent criteria for manufacturing, exporting, and
registering drugs, as it is keen on promoting national industry and increasing domestic consumption as well
exports. He said that the plant that will be inaugurated today meets the highest quality standards.
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He clarified that the plant’s specialization in the manufacturing of injections showcases a strategic vision since it
targets drugs that are not heavily available on the market. He stated that there is a need for such kind of drugs,
especially that they are manufactured by Arwan using high technology, which will attract regional and
international companies to manufacture drugs in Lebanon.
It is worth noting that “Arwan” project is an Emirati investment that consists of a plant that manufactures drugs,
medical products, cosmetic products, pharmaceutical materials, hospital supplies, and any other relevant product.
The plant was established in the real estate region of Jadra, in the Caza of Chouf, in the Governorate of Mount
Lebanon, with a total built-up area equivalent to /19350/ square meters and with an investment value of /35/
million US Dollars. It is worth noting that this project that offers 83 job opportunities benefited from the incentives
and facilities provided by “IDAL” by virtue of the Investment Law no. 360 and was awarded the “Package Deal
Contract”.
About IDAL
The Investment Development Authority of Lebanon (IDAL) is Lebanon’s national investment promotion agency. It aims to
promote Lebanon as a key investment destination, and attracting, facilitating, and retaining investments in the country. IDAL
provides local and foreign investors alike with a range of incentives and business support services across the following sectors;
Industry, Agriculture, Agro-Industry, Tourism, Information Technology, Technology, Telecommunication, and Media. In
addition to its role as an investment promotion agency, IDAL is entrusted with the active promotion and marketing of
Lebanese exports including but not limited to agricultural and agro-industrial products.
For more information please contact us on:
Riad El Solh Street, Lazarieh Tower, Block A, 3rd Floor│
Po. Box: 113- 7251 │Beirut, Lebanon
T +961 1 983306
F +961 1 981502
[email protected]
www.investinlebanon.gov.lb
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