Release Date: 04-Oct-2013
Saudi Arabia has the largest pharmaceutical manufacturing segment in the GCC region. However, most of the local production is destined for the export markets. Domestic production accounts for around 15% of the overall supply of pharmaceuticals in the market. Saudi Arabia currently has around 15-20 pharmaceutical manufacturers producing pharmaceutical drugs. These include indigenous companies and subsidiaries of multinational pharmaceutical giants. A major proportion of 88% is constituted by retail sales of pharmaceuticals through close to 4,000 pharmacies in the country.
Saudi Arabia relies substantially on imports of pharmaceutical products, primarily from Europe, to meet local demand as a result of insufficient domestic drug production and lack of indigenous research capabilities. The country imported close to USD 3.2 Billion worth of pharmaceuticals in 2012, dominating the market for at least 80 percent.
Government is taking efforts to promote FDI in the pharmaceutical sector especially directed to help development of skills of local companies to manufacture patented medicines as well. Policies like free trade agreements have played a significant role in encouraging foreign investments. Increased penetration of the healthcare sector by insurance providers, price regulation guidelines to ensure uniformity in pricing and dedicated healthcare reforms, have further ensured growth of pharmaceutical market in recent years.
Saudi Arabia is expected to emerge as one of the fastest growing markets in future. The country is one of the most developed and technologically advanced medical sectors in the GCC Region with modern equipment and amenities. Pharmaceuticals products sales in Saudi Arabia are expected to surpass US$ 7 Billion by 2018 as compare to US$ 4 Billion 2012.
For More Information Visit: “Saudi Arabia Pharmaceutical Market Opportunity Analysis”