Impact Analysis of Covid-19
The complete version of the REPORT will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Saudi Arabia Pharmaceuticals Market – Insights
Saudi Arabia pharmaceuticals market includes medicinal products sold as patented/prescription and OTC products for various ailments in hospital and retail pharmacies. Patented products are available as branded drugs and generic drugs include both branded generics and non-branded ones.
Saudi Arabia pharmaceuticals market is estimated to account for US$ 13,391.2 Mn in terms of value by the end of 2027.
Saudi Arabia Pharmaceuticals Market: Drivers
Rapid reforms in the healthcare sector in Saudi Arabia are expected to propel growth of Saudi Arabia pharmaceuticals market. For instance, through Vision 2030, the government of Saudi Arabia plans for localization of the pharmaceutical industry by encouraging foreign pharmaceutical manufacturers to establish plants in Saudi Arabia through public-private partnerships and joint ventures with national entities.
Moreover, increasing healthcare expenditure is also expected to aid in growth of the market. For instance, according to Saudi Arabia government data, healthcare and social development expenditure reached US$ 45.9 billion in 2019.
Prescription Products held dominant position in Saudi Arabia pharmaceuticals market in 2019, accounting for 71.7% share in terms of value.
Figure 1. Saudi Arabia Pharmaceuticals Market Share (%), by Product Type, 2019
Saudi Arabia Pharmaceuticals Market: Restraints
High reliance on imports is expected to hinder growth of the market. Saudi Arabia is mostly dependent on imports for its pharmaceutical requirements. For instance, according to International Trade Administration’s updated report on exports in October 2019, Saudi Arabia accounts for 59.4% of the purchases of pharmaceutical products in the Gulf.
Moreover, high investment required in manufacturing of halal pharmaceuticals is also expected to limit growth of the market.
Saudi Arabia Pharmaceuticals Market: Opportunities
Improvement in Ease of Doing Business (EODB) score is expected to offer lucrative growth opportunities to players in the market. For instance, according to annual ranking by the World Bank, Saudi Arabia improved its 2019 EODB score by 1.62% from 2018 to rank 92nd among 190 economies.
Moreover, increasing prevalence of lifestyle diseases is also expected to aid in growth of the market. For instance, the study, ‘Rising incidence of obesity in Saudi residents. A threatening challenge for the surgeons’, published in the International Journal of Health Sciences, in January 2018, reported obesity in 42% of the study population with low physical activity levels and unhealthy dietary habits.
Market Trends/Key Takeaways
Increasing population is a major organic growth factor for the pharmaceuticals market in Saudi Arabia. For instance, according to World Bank, the population in Saudi Arabia reached 33.6 million in 2018 from 27.4 million in 2010.
Decreasing number of expatriates is expected to lead to strain on labor force in the pharmaceutical sector. For instance, according to Jadwa Investments’, a capital market company’ September 2019 report, over 1.9 million expatriates left Saudi Arabia since the start of 2017 and 132,000 are estimated to have left the labour market during 2Q 2019.
Value Chain Analysis –
Saudi Arabia Pharmaceuticals Market: Competitive Landscape
Major players operating in Saudi Arabia pharmaceuticals market include, SPIMACO, Tabuk Pharmaceuticals Manufacturing Co., Julphar, Jamjoom Pharma, GlaxoSmithKline plc., Pfizer Inc., Novartis AG, and Sanofi.
Saudi Arabia Pharmaceuticals Market: Key Developments
Major players in the market are focused on partnering with educational institutes for R&D of drugs. For instance, in December 2018, SPIMACO and King Saud University signed a memorandum of understanding in the fields of drug development and training of graduates of the Faculty of Pharmacy.
Players in the market are focused adopting partnership strategies to expand their presence in Saudi Arabia. For instance, in February 2020, Grifols, a Spain-based pharmaceutical company and the Public Investment Fund of Saudi Arabia announced a deal to build a network of plasma collection centers and other facilities for the production of plasma medicines in Saudi Arabia.