Pharmaceutical Market in Saudi Arabia 2022

The pharmaceutical industry in Saudi Arabia is one of the largest in the region and the world. The sector’s turnover is expected to grow at an annual rate of 2.3% between 2021 and 2026, reaching pre-pandemic levels by 2029.

The aim of this document is to show the trends in the sector, taking into account production, consumption, imports, exports, industrial costs, industry profitability and the competitive environment. Key indicators are compared with those of other countries in the region.

Why the pharmaceutical market in Saudi Arabia have potential?

Saudi Arabia’s pharmaceuticals market ranks fourth in the Middle East and Africa region, making it an important market for the sector. In terms of growth, Saudi Arabia ranks 13th in the Middle East and Africa region. Demand for pharmaceuticals is largely driven by household demand, which generated 64.0% of total demand in 2021. Over the year, domestic demand for pharmaceuticals increased by 4.2%.

The pharmaceuticals market in Saudi Arabia is dominated by foreign companies, as imports accounted for 89.4% of the total market size in 2021.

What data do we need to consider for the Pharmaceuticals Market in Saudi Arabia?

Saudi Arabia, with a production value of $1 billion, accounts for 2.7% of total Middle East and Africa production in 2021. Industry profitability increases to 47.9% of production value in 2021, the highest in the region. Saudi Arabia has the fourth largest pharmaceutical market in the region, with demand reaching $7 billion in 2021.

The pharmaceutical industry is mainly dependent on domestic demand growth, with exports accounting for 32.8% of total output in 2021. Saudi Arabia ranks seventh in the MENA region in terms of export share.

What is the most important company in the pharmaceutical sector in Saudi Arabia?

The largest company in Saudi Arabia is Tabuk Pharmaceutical Mfg Co, which will account for 22.7% of the sector’s total output value in 2021.


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