In the efforts to realize Vision 2030, the Healthcare sector is undergoing unprecedented transformation in the Kingdom. According to new data, the Saudi Arabian pharmaceutical drugs market was valued at $10.19 billion last year and is expected to grow at a 7.3 percent annual rate over the next six years.
According to a report by the US-based research firm, Coherent Market Insights, the optimistic forecast was based in part on the Kingdom's plans to expand local manufacturing capabilities.
Here are the key trends to watch out for in the Saudi pharmaceutical landscape:
- A steady increase in patient population
Saudi Arabia is the MENA region's largest spender on healthcare, with the 2019 budget allocating more than USD 45.86 billion for health and social development. And, if the expected increase in patient numbers is any indication, the budget will only grow.
By 2030, it is expected that 250,000 Saudi citizens will require home healthcare services. Chronic healthcare will be in greater demand, particularly to address Alzheimer's, Dementia, Parkinson's, and Multiple Sclerosis conditions among the growing elderly population (the 65+ population will grow from 3.4 percent in 2019 to 17.2 percent by 2050.
- Localized manufacturing:
According to Invest in Saudi, the Kingdom’s objective is to “accelerate the growth of the local manufacturing cluster and transition into products with higher complexity, with focus on products that are important for national security, to become the leading manufacturer and innovator in MENA region.”
Pfizer, one of the world's largest pharmaceutical companies, has been operating in Saudi Arabia for six decades and has recently become famous for its coronavirus disease (COVID-19) vaccine. Construction on its manufacturing and packaging facility was completed in 2017. Pfizer, which is based in King Abdullah Economic City, plans to expand further in the coming years as the Kingdom moves closer to realizing its Vision 2030 goals of diversifying away from hydrocarbons and increasing local production.
- Public-Private Partnerships (PPP)
The Kingdom of Saudi Arabia accounts for 59.4 percent of pharmaceutical product purchases in the Gulf and will continue to be a key market for many leading multinational pharmaceutical companies in the Middle East. Aside from demographic and epidemiological factors, the transition to a more privatized and comprehensive healthcare system will drive demand for both patented and generic drugs.
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