Saudi Arabia's pharma market to top $10.74b by 2023
The rapid growth of Saudi Arabia's pharmaceutical market will be placed under the spotlight at the forthcoming CPhI Middle East and Africa event, as the latest industry data reveals the Kingdom's pharmaceutical market is expected to be valued at $10.74 billion by 2023.
The event, sponsored by the Ministry of Health and Prevention (MoHaP), returns to the Abu Dhabi National Exhibition Centre from September 16-18 and will explore the rapid reform of the country's healthcare system at both regulatory and service provision levels, in line with Saudi Arabia's Vision 2030 and the National Transformation Programme. According to the latest IQVIA Market Prognosis - Saudi Arabia report, the kingdom's pharmaceutical market is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.5 per cent until 2023.
Cara Turner, brand director - Pharma, UBM EMEA, the organisers of the event, said: "Saudi Arabia is one of the largest pharmaceutical markets in the Middle East, and its expansion over recent years can be attributed to a growing population, an increase in non-communicable diseases and strong state support for health services, with major government investment in new hospitals and clinics."
According to UN figures, Saudi's population stands at an estimated 34 million, 32 per cent of which are under 14 years and is growing at around two per cet annually. Life expectancy has increased from 69 years in 1990 to over 75 years today. Saudi Arabia covers 2.15 million square kilometres and Riyadh and Jeddah are home to 6.5 and four million residents respectively, almost a third of the entire population, creating their own unique healthcare dynamics. This is in sharp contrast to over 12 million Saudis who live in isolated or sparsely populated areas, challenging consistent healthcare delivery.
"Putting that into perspective, geographically Saudi is the 12th largest country in the world, but in terms of population density, it is ranked 209," said Turner.
In addition, the rise in non-communicable diseases such as cardiovascular diseases, cancer, chronic respiratory disease, diabetes and obesity, which tend to require long-term treatment and medication. Many of these diseases are a consequence of poor lifestyle choices, but alarmingly over 35,000 children have been diagnoses with Type 1 diabetes placing the Kingdom in the top four countries worldwide in terms of incidence.
"To address these issues, in 2019 alone, the Saudi government introduced a 17 per cent increase in funds allocated for spending on health and social development - with approximately $12.72 billion earmarked for spending on healthcare projects directly linked to Saudi's Vision 2030," added Turner. "Under the National Transformation Programme (NTP), the kingdom is working to boost the proportion of local manufacturing in the pharma-sector to approximately 40 per cent by the end of 2020. While, the Ministry of Health (MoH) has been tasked with further localising the industry, both in terms of sources and in employment."