The Saudi Arabia Pharmaceutical market has recorded significant growth over the years driven by various factors like increasing ageing population mostly in the above 60 years bracket, changing demographics and rise in the incidence of lifestyle diseases, increased spending power, result driven government initiatives to promote the growth of indigenous pharmaceutical companies. Inspite of the progress, the pharmaceutical sector in the Saudi Arabia is still in an emerging phase, and drug manufacturing is at a relatively nascent stage owing to many challenges, which need to be resolved. The Saudi pharmaceuticals market has accounted for more than to 50% of all pharmaceutical products sales in the GCC region.
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. 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$ 4.40 Billion 2013.
“Saudi Arabia Pharmaceutical Market Development Analysis” Report Highlight: