Photo by Yasmine Arfaoui on Unsplash
Saudi Arabia’s Rx and OTC market is a burgeoning hub in the Middle East and Africa (MEA) region, demonstrating robust growth and strategic importance. The Kingdom of Saudi Arabia’s (KSA) pharma sector is expected to reach USD 30,73 bln by 2040 at a CAGR of 8,7%. This growth trajectory positions Saudi Arabia as a focal point for investors and business development managers aiming to penetrate the MEA market.
Saudi Arabia Market Dynamics, Growth Drivers, Trends and Opportunities
Figure 1. Saudi Arabia Pharma Market Overview Snapshot
Saudi Arabia accounts for 36% of total pharma sales in MEA, reflecting its dominant position. The market’s rapid expansion is driven by several factors:
- The KSA hospital channel has been experiencing double digit growth, accounting for over 50% of total market sales.
- The top 10 corporations driving the growth in the market hold a 47% market share, led by the Jordanian Hikma Pharma.
- Local companies like Jamjoom Pharma are also rising swiftly, with a growth rate of 38%, propelled by popular brands such as Azi-Once, Vitamin D3, and Lavie.
- Saudi Arabia’s Vision 2030, which aims to reduce dependency on imports and foster local production, is another critical catalyst for the pharma market, focusing on:
- Healthcare transformation;
- Increasing private sector participation;
- Boosting local manufacturing (localization or „saudization“) through incentives for R&D and technology transfer. For example, companies such as GSK, Novartis, Pfizer have already made significant investments through technology transfer or setting up regional manufacturing facilities.
- Key therapeutic areas such as gastrointestinal, dermatology, and ophthalmology are expected to witness high single-digit growth rates, driven by innovative products and the expansion of local generics.
- The generic drug market, in particular, is anticipated to grow significantly, reflecting the government’s focus on making healthcare affordable and supporting local pharma companies.
Distinguishing Features for Companies Willing to Enter Saudi Arabia
Figure 2. Key Market Growth Drivers and Trends in the Kingdom of Saudi Arabia (KSA)
For business developers considering entry into the Saudi Arabia pharma market, several specificities stand out:
- With a projected CAGR of 8,7% and significant government investment in healthcare infrastructure, the Saudi market offers substantial growth opportunities.
- The hospital channel represents over half of the market sales, highlighting the importance of establishing strong relationships with healthcare institutions.
- Vision 2030 provides incentives for local manufacturing and R&D, offering opportunities for partnerships and joint ventures with local firms.
- The market is highly fragmented with both global MNCs and emerging market players. Local giants like SPIMACO, Tabuk, and Jamjoom Pharma play crucial roles, with each having distinct market strengths and areas for collaboration. Nevertheless, the market is still heavily dominated by imported products (over 74%).
- The push towards innovation and reducing import dependency creates a favourable environment for new entrants focusing on advanced medicines and cutting-edge treatments.
- Saudi Arabia’s central position in the MEA region enhances its appeal as a hub for global pharma events and business opportunities.
By 2040, Saudi Arabia is poised to solidify its position as a leading pharma market in the MEA region. Its pharma market offers a dynamic and promising landscape for international companies.
Chameleon Pharma Consulting Group specializes in internationalization, market entry and regulatory projects in the areas of consumer health, pharma, food supplements, medical devices, and cosmetics in the Middle East, as well as Latin America, Asia, the US, Europe, and CIS. We have completed over 300 international market entry projects, offering:
- Systematic Country and Product analysis (portfolio analysis),
- Systematic Local Partner Identification,
- Registration and Regulatory Affairs,
- Digital Transformation Services (strategy consulting, e-learning, social media analysis, SEO optimization and other).
For your individual questions please contact us by e-mail at service@chameleon-pharma.com.
