Countries in Middle East and North Africa (MENA) are showing rapid growth in pharmaceuticals and offering emerging opportunities amidst US-Israeli war with Iran, according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil).
Jordan is currently the most significant emerging trend, showing a 76.05% growth rate in the April-January FY 2025-26 period compared to the previous year. This surge is heavily supported by a 120.06% increase in vaccine exports. Kuwait market has seen a sharp recent increase, with 47.63% growth in the most recent period. This is driven by a 69.60% rise in drugs, formulations and biologicals. Exports to Libya have rebounded significantly with 36.27% growth recently, largely due to a 36.68% increase in drug and formulations.
Iraq has emerged as a major destination for vaccines, with export values rising from USD 12.44 million in FY 2020-21 to USD 42.52 million in FY 2024-25. Similarly, vaccine exports to Syria saw a massive jump from USD 2.89 million to USD 9.28 million between FY 2023-24 and FY 2024-25.
Ayush and Herbals, which is a smaller segment has shown a notable trend in the UAE, where Ayush and Herbal exports grew from USD 25.04 million to USD 32.98 million in the last full fiscal year. The UAE saw a massive, albeit temporary, spike in surgical exports to USD 67.24 million in FY 2023-24, though this normalized to USD 24.98 million in FY 2024-25.
The ongoing US-Israel-Iran conflict has also escalated into cold-chain and product integrity risks. The delays in cold chain logistics heighten the chance of spoilage for sensitive drugs (insulin, vaccines, monoclonal antibodies). Pharma companies may also face regulatory issues (e.g., temperature deviation reports) and forced use of expensive emergency airlifts or local stock drawdowns. Due to cost escalation, war-risk insurance premiums have spiked, along with fuel surcharges and rerouting fees. Overall logistics costs for affected routes could rise 30 to 50% or more in the short term.
While talking about India specific impacts, industry experts have, however, alerted that Indian pharma exporters including major players with strong Middle East presence may face material disruptions. Dubai is a key transit hub for exports to the GCC and Africa. Delays could lead to inventory shortages in destination markets, production slowdowns if imports (e.g., intermediates) are stuck, and higher costs passed on downstream. Due to cost escalation, war-risk insurance premiums have spiked, along with fuel surcharges and rerouting fees.
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