by The Saudi Arabia pharmaceutical drugs market includes prescription and OTC drugs for treatment of various diseases and disorders such as cardiovascular diseases, diabetes, asthma, arthritis, depression and others. The growth of the market is attributed to the increasing geriatric population, prevalence of chronic diseases, rising healthcare expenditure and growing health awareness among the population.
The Global Saudi Arabia Pharmaceutical Drugs Market is estimated to be valued at US$ 608.8 Bn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the Saudi Arabia pharmaceutical drugs are AbbVie,Mylan Pharmaceuticals,Gedeon Richter,HRA Pharma,Cipla Ltd,Aurobindo Pharma Ltd,Dr. Reddy’s Laboratories Ltd,Sun Pharmaceutical Industries Ltd,Torrent Pharmaceuticals Ltd,Mankind Pharma Ltd. These major players are adopting various inorganic growth strategies such as acquisitions, mergers, and collaborations to expand their presence and gain competitive advantage in the market.
The key opportunities in the Saudi Arabia Pharmaceutical Drugs Market Demand include strong R&D activities, increasing online sales of drugs, growth in medical tourism, favorable FDI policies, and availability of skilled labor. The pharmaceutical companies are investing heavily in R&D to develop new drug formulations and treatment options for diseases with high prevalence in the region.
Globally, the Saudi Arabia pharmaceutical drugs market is expected to witness significant growth owing to rising healthcare infrastructure development programs by the government. The growing partnership between international drug makers and local players is helping improve distribution networks and ensure drug availability across the region. Expansion of production facilities by leading multinational companies is boosting Saudi Arabia’s position as a global pharmaceutical hub.
Market Drivers
The key driver that is fueling the growth of Saudi Arabia pharmaceutical drugs market is the rising healthcare expenditure by both public and private players. In recent years, the government has increased the healthcare budget substantially to strengthen preventive, basic, and curative care services. This has positively impacted the demand for pharmaceutical drugs across various therapeutic segments. Growing affordability driven by economic growth is another factor augmenting the spending on medicines.
PEST Analysis
Political: The pharmaceutical industry in Saudi Arabia depends on government policies and regulations. Any changes made by the Ministry of Health can affect the market dynamics. The government is focusing on improving the healthcare infrastructure and accessibility of drugs in the country.
Economic: Saudi Arabia has a growing economy due to rising GDP and per capita income levels. This translates to higher healthcare spending including on pharmaceutical drugs. Increasing investments are being made in upgrading hospitals and clinics.
Social: With a rapidly growing youth population and aging senior citizen demographic, demand for pharmaceutical drugs will increase over time. Lifestyle changes are also resulting in higher incidence of lifestyle diseases augmenting the market.
Technological: E-health initiatives and better diagnostics are changing the way drugs are prescribed, supplied and consumed in the kingdom. Research & development of innovative therapies and generic drugs is supported to improve the quality and reduce costs of healthcare. Online pharmacies are also emerging.
The Northwestern region including cities like Tabuk, Al-‘Ula and Ha’il contribute significantly to the overall market in terms of value due to higher spending abilities and availability of modern medical facilities here. The population in this region has shown above average growth over the past decade.
The Central region has been the fastest growing market for pharmaceutical drugs in the recent years on account of rapid urbanization of cities like Riyadh and Buraidah. The increasing number of corporate hospitals, specialty clinics and availability of health insurance schemes have augmented the supply and demand for prescription as well as OTC drugs from this region.
