SUMMARY:
Saudi Arabia has the largest pharmaceutical market in the Middle East due to its large population and high levels of both government spending and per-capita income. The Kingdom’s economic development and rising incidences of non-communicable lifestyle diseases has also driven greater demand for pharmaceutical products. The comparatively high level of healthcare services in Saudi Arabia also makes it a regional destination for medical tourism. The Saudi pharmaceutical market is driven by imported products, though local firms are playing a growing role in supply and distribution, domestic research, and manufacturing.
Local firms enjoy competitive advantages stemming from favorable government policies such as pricing offsets and expedited licensing. This regulatory approach reflects an effort to elevate the viability of local commercial activity in an industry dominated by large multinational companies (MNCs) with vast global operations. Recent reforms have seen relaxed foreign ownership and local employment requirements as Saudi Arabia balances the fostering of domestic economic activity with attracting international investments. As the Kingdom transitions into a knowledge and innovation-based economy, local pharmaceuticals and biotechnology represent an attractive opportunity to produce high-skilled local jobs, enable knowledge and technology transfers with international industry leaders, enhance existing industrial supply chains, and support local companies to meet growing demand.
