The Saudi Arabian pharmaceutical industry is anticipated to reach $1.3 Billion in 2008 as it is getting support from health insurance plans and liberalization of regional economies.
The Health Minister of Saudi Arabia said that Saudi Arabia would become one of the largest medicine consuming countries in the Middle East due to the total turnover of its pharmaceutical industry that is estimated to be around SR5 Billion (approx US$1.3 Billion) this year, as reported by MENA FN.
DR Hamad Al-Manie, Health Minister, said in Riyadh that approx 85% of the total pharmaceuticals that Kingdom consumes is imported into the GCC (Gulf Cooperation Council) region. Moreover, around 21% of medicines and equipment (medical) is manufactured within the country, as reported by MENA FN on April 7, 2008.
Saudi Arab’s population suffers from same chronic diseases with which other developing countries suffer and the problem is becoming grimmer each year in the regions like Saudi Arabia and Middle East. Diseases like obesity and physical inactivity are commonly found among people of this region. Hence, they are resorting to medicines pushing growth in the pharmaceutical industry of Saudi Arabia.
Another main reason for growth in the pharmaceutical market of the country is implementation of liberal policy in the market. This liberal policy includes initiatives like 100% ownership and huge benefits to foreign companies that are fundamentally changing the pharmaceutical market. Besides, fragmentation of the industry and mergers and acquisitions of pharmaceutical companies are infusing growth in the industry.
Moreover, the resident permits are linked with cooperative health insurance policy and failing to implement the scheme makes sponsors and employers liable for strict penalties in the Kingdom. This scheme is known as mass health insurance and is setting up base for the Saudi Arabia pharmaceutical industry to flourish. It also enables beneficiaries or patients to get organized treatment for providing impetus to pharmaceutical market in the country.
According to a Research Analyst at RNCOS, “The pharmaceutical market of Saudi Arabia is expected to receive strong boost from liberalization of regional economies and the implementation of mass health insurance. Both these factors are collectively leading to huge investment in private as well as public health sector and are passing on the benefits to the pharmaceutical industry.”
Related Market Research Reports:
Emerging Pharmaceutical Markets Globally
Indian Contract Manufacturing - A Hot Opportunity
Indian Pharma Sector Analysis
