Pharmaceutical Industry Analysis in Saudi Arabia

Analytical Study of Pharmaceuticals in Saudi Arabia (2024 to 2034)

Revenues for pharmaceuticals industry in Saudi Arabia are estimated to rise at a 5.20% CAGR through 2034. The overall demand for pharmaceuticals in Saudi Arabia is likely to surge, crossing a valuation of US$ 10,113.1 million in 2024. By 2034, sales projections for pharmaceuticals in Saudi Arabia indicate attaining a valuation of US$ 16,789.6 million.

Key Trends Boosting Sales through 2034:

• Biopharmaceuticals, such as biologics and biosimilars, are causing substantial changes in the pharmaceutical sector in Saudi Arabia. This demand is expanding due to technological breakthroughs that have produced more individualized and focused treatments.
• Pharmaceutical firms are looking for expansion prospects in growing areas, such as the Middle East. The expansion of the pharmaceutical business in these areas is facilitated by increasing healthcare demands, better infrastructure, and government efforts.
• Due to regulatory incentives and the possibility of personalized medicines in smaller patient groups, developing medications for rare diseases is receiving more attention.
• In the Saudi Arabian pharmaceutical industry, sustainability issues are gaining prominence. Businesses are concentrating on cutting waste, assuring ethical supply chain procedures, and developing environmentally friendly production techniques.
• The pharmaceutical industry in KSA is extensively using AI and ML progressively for customized treatment, clinical trial optimization, and drug discovery. These technologies improve the capacity for data processing, which could lead to more effective medication development procedures.
• Complex medication formulations and tailored medicine production are being investigated with 3D printing technology. This can result in medication delivery systems that are more individualized and patient-specific.
• Patient opinions are being included in medication development processes at an increasing rate. The goals of patient advocacy, participation, and clinical trial design are to ensure that Saudi Arabian pharmaceuticals better suit the requirements and preferences of patients.

Key Insights - Highlights on the Emerging Opportunities in the Pharmaceutical Industry

• Saudi Arabian pharmaceutical businesses can substantially expand their impact and reach by taking advantage of the confluence of healthcare and technology. Companies can improve patient involvement, boost treatment outcomes, and increase operational efficiency by carefully integrating digital health technologies, including telemedicine platforms, mobile health applications, and remote patient monitoring devices.
• Pharmaceutical firms in Saudi Arabia have an opportunity to concentrate on creating novel therapeutics due to the rising frequency of neurological illnesses and the scarcity of available treatments. Through allocating resources towards the study of neurodegenerative diseases like Parkinson's and Alzheimer's, businesses can effectively tackle substantial unfulfilled medical requirements and capitalize on an expanding industry.
• Using augmented reality (AR) in medical education and training offers a special opportunity. Saudi Arabian pharmaceutical companies can develop engaging and interactive augmented reality (AR) apps for medical personnel, which can improve surgical methods, training programs, and patient comprehension and product use.
• The combination of nutrition and medications, also known as nutraceuticals, presents a unique potential. The increased public interest in preventative healthcare and wellness can be leveraged by developing pharmaceutical-grade nutritional supplements and functional foods that target certain health issues.
• Pharmaceutical businesses in Saudi Arabia can set up AI-focused consulting services as AI gets progressively integrated into healthcare. By positioning themselves as experts in AI-driven healthcare solutions, companies can seek partnerships and collaborations by showcasing their experience in integrating AI in drug development, clinical trials, and customized medicine.

Historical Performance of the Pharmaceutical Industry in Saudi Arabia (2019 to 2023) Vs. Forecast Outlook (2024 to 2034)

The Saudi Arabian pharmaceutical industry expanded at a 9.0% CAGR from 2019 to 2023. The Saudi government has aggressively promoted economic diversification and the growth of the healthcare industry. Initiatives like Vision 2030, unveiled in 2016, attempt to minimize the Kingdom’s reliance on oil while also focusing on developing a more varied and sustainable economy. The expansion of the pharmaceutical sector in Saudi Arabia is facilitated by investments in research and development as well as infrastructure related to healthcare.

Saudi Arabia's population is expanding quickly, and the country is seeing a rise in the frequency of chronic illnesses and pharmaceutical products. Due to the expanding healthcare demands, pharmaceutical firms now have more opportunities to grow and satisfy the demand for drugs.

By enacting reforms, Saudi Arabia has liberalized its economy and opened it up to international investment, particularly in the pharmaceutical industry. As a result, more foreign pharmaceutical businesses are now present in the Saudi pharmaceutical sector, contributing knowledge, funds, and technology.

Access to healthcare services has increased throughout Saudi Arabia due to investments in the country's healthcare infrastructure, which includes clinics, hospitals, and pharmacies. As a result, there is now a greater need than ever for pharmaceuticals to satisfy the demands of an expanding patient base.

The demand for pharmaceuticals in Saudi Arabia is predicted to rise at 5.20% through 2034. Although the growth rate is lower than the historical period, ongoing investments in healthcare infrastructure are likely to bolster pharmaceutical demand in Saudi Arabia.

Saudi Arabia can anticipate an increase in medical tourism as the nation works to establish itself as a regional center for healthcare. As a result, pharmaceutical enterprises are going to have more chances to offer medical services and goods to a global patient population.

Sabyasachi Ghosh

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

Category-wise insights

Branded Drugs Dominate as the Leading Drug Type for Pharmaceuticals in Saudi Arabia

Eighty percent of Saudi Arabia's pharmaceuticals are imported from foreign nations. Merely thirty percent of Saudi Arabia's medicines and a small fraction of branded medication output are domestically manufactured. Branded drugs from various leading giants are highly preferred in Saudi Arabia due to their perceived quality and efficacy over generic drugs.

Even when generic medications have the same active components as their branded equivalents, consumers tend to see branded medications as more inventive and potent. In economies where consumers place a premium on perceived efficacy, the notion that branded medications provide better outcomes can increase demand.

Certain pharmaceutical firms provide patients discounts or financial help through their loyalty programs or assistance programs for branded medications. These initiatives affect patient decisions and raise the demand for branded pharmaceuticals.

Adoption of Small Molecules as Leading Drug Class Surges in Saudi Arabia

It is normal practice to treat common health issues, including infections, diabetes, and cardiovascular illnesses, with small molecules. Since these illnesses are becoming more common in Saudi Arabia, there is likely to be an enormous demand for small-molecule medications that target these medical disorders.

Small molecule medications are often accessible and available, particularly in generic form. When it comes to healthcare systems that strive for universal coverage and availability of pharmaceutical treatments, this accessibility guarantees a consistent supply of necessary pharmaceuticals, which adds to their appeal.

Complex biologics are typically more expensive to develop than small molecules, especially generic variants. Small molecules' affordability fuels demand in healthcare systems where cost is an integral factor, particularly when treating common health issues.

Regulatory bodies around the globe, including Saudi Arabia, typically have well-defined procedures implemented for examining and approving small molecule medications. Small molecules are in high demand in this sector because their regulatory routes are well-known, which helps speed up and simplify the clearance procedure.

Competitive Landscape

The pharmaceutical industry in Saudi Arabia is marked by a competitive and dynamic environment that both domestic and foreign firms fuel. Various businesses compete for dominance in this industry, hoping to take advantage of the nation's changing healthcare requirements.

Companies like Tabuk Pharmaceuticals, Jamjoom Pharma, and Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO) are important participants in the domestic market and significantly affect the sector's expansion. These businesses use their knowledge of the local market, well-established distribution networks, and compliance with laws and regulations to stay one step ahead of the competition.

Strategies for Key Players to Tap into Potential Growth Opportunities

• To build a complete healthcare ecosystem and increase market share beyond pharmaceutical items, consider diversifying into healthcare services, including clinics and diagnostic centers.
• Adopt digital health solutions to increase patient involvement, streamline healthcare delivery, and take advantage of the increasing demand for technology-driven health services, such as telemedicine and mobile applications.
• To support the government's self-sufficiency objectives, and increase production capacity while maintaining cost-effectiveness and responsiveness to regional market needs.
• To spur innovation and provide cutting-edge pharmaceutical solutions that meet consumer wants, leading companies should commit significant resources to key R&D projects.
• Invest in creating customized medical therapies suited to each patient's unique features to meet the Saudi market's growing need for focused and efficient treatments.

Recent Developments

• In January 2024, Saudi Arabia developed a national biotech plan to become a worldwide biotech hotspot within the next 16 years. The initiative is part of a larger effort called Vision 2030, which intends to establish the nation as a biotech leader in the Middle East and North Africa by 2030.
• In October 2023, the first oncology pharmaceutical facility was inaugurated in Sudair City, Saudi Arabia, marking a significant milestone in the pharmaceutical and food industries. The facility is one of three new industries developed in the area. Bandar bin Ibrahim AlKhorayef, Saudi Arabia's Minister of Industry and Mineral Resources opened three new pharmaceutical and food enterprises for industry and businesses in Sudair City.
• In June 2023, Saudi Arabia's Public Investment Fund (PIF) established Lifera, a new commercial-scale contract development and manufacturing organization (CDMO). According to the Kingdom, the CDMO will boost the local biopharmaceutical industry, increase national resilience, and strengthen Saudi Arabia's worldwide pharmaceutical manufacturing hub position.

Some of the Key players in Pharmaceuticals in Saudi Arabia

• Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO)
• Tabuk Pharmaceuticals
• Hikma Pharmaceuticals
• Julphar Saudi Arabia
• Jamjoom Pharma
• Modern Pharmaceutical Company (MPC)
• Ameco Pharmaceutical Company
• Tadawi
• Al Nahdi Medical Company
• Sipco (Saudi Industrial Products Company)

Key Coverage in Pharmaceuticals in Saudi Arabia Report

• Current Status and Vision of Saudi Arabia’s Local Pharmaceutical Industries
• Insights into the Middle East & Africa Pharmaceutical Market
• Opportunities Analysis for Indian Drug Firms
• Revenue Statistics in the Pharmaceuticals Market in Saudi Arabia
• Drivers Behind Saudi Arabia’s Pharmaceutical Industry Forecast

Scope of the Report

Key Segments

By Prescription Type:

• Prescription Drugs
• Over-the-Counter Drugs

By Drug Type:

• Branded Drugs
• Generic Drugs
• Branded Generic Drugs

By Drug Class:

• Small Molecules
• Biologics
• Biosimilars

By Indication:

• Cardiovascular Diseases
• Immunology
• Respiratory Diseases
• Neurological Diseases
• Infectious Diseases
• Skin Diseases
• Oncology
• Metabolic Disorder
• Urology
• Ophthalmic Diseases
• General Health
• Others

By Mode of Administration:

• Topical
• Oral
• Injectable
• Intra-nasal
• Others

By Distribution Channel:

• Hospital Pharmacies
• Retail Pharmacies
• Drug Stores
• Online Pharmacies