Saudi Arabia Pharmaceutical Drugs Market To Witness High Growth Owing To Increasing Government Investments in Healthcare Infrastructure

Saudi Arabia Pharmaceutical Drugs Market To Witness High Growth Owing To Increasing Government Investments in Healthcare Infrastructure

 The Saudi Arabia pharmaceutical drugs market is estimated to be valued at US$ 528.47 Bn in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The Saudi Arabia pharmaceutical drugs market consists of products such as branded and generic drugs used for the treatment of various diseases and medical conditions. The market includes drugs for key therapeutic areas such as cardiovascular diseases, diabetes, cancer, respiratory diseases, and neurological disorders. The increasing prevalence of chronic diseases along with growing government investments in healthcare infrastructure development are fueling the growth of the pharmaceutical drugs market in Saudi Arabia.

Market Dynamics:
One of the major drivers for the growth of the Saudi Arabia pharmaceutical drugs market is the increasing government investments in the healthcare sector. The Saudi government has implemented several initiatives aimed at developing the country's healthcare infrastructure and improving access to quality healthcare services. For instance, the Government of Saudi Arabia has allotted USD 32.5 billion for the healthcare sector development under its Vision 2030 plan. These investments are allowing for easy availability of modern medical facilities and pharmaceutical drugs in the country.
Additionally, the rising geriatric population prone to chronic illnesses is also boosting the demand for pharmaceutical drugs in Saudi Arabia. As per statistics, Saudi Arabia had around 1.5 million citizens aged 65 years and above in 2020, and this number is expected to double by 2050. The progressive aging of the population translates to higher medical needs and subsequently increased sales of pharmaceutical drugs.

SWOT Analysis

Strength:
- Growing healthcare expenditure is boosting the demand for pharmaceutical drugs in the country. The healthcare sector expenditure in Saudi Arabia is projected to grow by 7% annually until 2023.
- Presence of key international players operating manufacturing facilities is improving the availability of drugs.
- Growing prevalence of chronic diseases such as cancer, diabetes, and cardiovascular diseases is driving the pharmaceutical drugs market growth.

Weakness:
- High dependency on imports for active pharmaceutical ingredients poses supply chain risks. Nearly 80% of APIs are imported.
- Lack of opportunities for local generic drugs manufacturing limits competition.

Opportunity:
- Focus on partnerships between international pharma companies and local players can boost local manufacturing and substitution of imports.
- Rising focus on healthcare infrastructure development through projects like Vision 2030 is expected to increase demand.

Threats:
- Stiff competition from low-cost drug imports poses pricing pressure in future.
- Political uncertainties and regional conflicts can disrupt supply chains.

Key Takeaways

The global Saudi Arabia Pharmaceutical Drugs Market Demand is expected to witness high growth, exhibiting CAGR of 7.6% over the forecast period, due to increasing healthcare infrastructure development projects under Vision 2030.

Regional analysis:

The Saudi Arabia pharmaceutical drugs market has been estimated to be worth US$ 528.47 billion in 2023. The West Asia region dominates the pharmaceutical drugs market in the country with a share of over 60%. This can be attributed to well-developed healthcare infrastructure, higher healthcare spending, and presence of major pharmaceutical companies in the Western region of Saudi Arabia.


Key players:

Key players operating in the Saudi Arabia pharmaceutical drugs market are SPIMACO, Tabuk Pharmaceuticals Manufacturing Co., Julphar, Jamjoom Pharma, GlaxoSmithKline plc, Pfizer Inc., Novartis AG, and Sanofi. Local companies like SPIMACO and Tabuk have been expanding manufacturing capabilities to reduce import dependence. International majors are also strengthening presence through collaborations with local players.

For more insights, Read-

https://www.pressreleasebulletin.com/saudi-arabia-pharmaceutical-drugs-market-demand/