Pharma market in Saudi Arabia forecast to rise to 14 billion riyals by 2014

The Saudi Arabian pharmaceutical market is the largest in the Gulf Cooperation Council (GCC). The vast majority of the market is currently provided by imports, mainly comprised of patented and over-the- counter (OTC) drugs. Local production is mainly involved in the secondary manufacturing of generic products, the Jeddah-based National Commercial Bank (NCB) said in its Saudi pharmaceuticals sector review released last Saturday.

In 2008, the Saudi pharmaceutical market accounted for roughly 65% of all drug sales in the GCC region. Aggregate demand for pharmaceuticals in the Kingdom is estimated to have grown by 21% to 11.17 billion riyals ($2.98 billion) in 2008. Furthermore, per capita market demand of pharmaceuticals in Saudi Arabia reached an all-time high of 450 riyals in 2008, well above the GCC average of SR263, the NCB report said.

Over the forecast period 2009-2012, the Saudi pharmaceutical market is set to experience steady growth at a CAGR of 5.92%. Population growth, aging and affluence will be the main drivers of this expansion, with GDP per capita forecast to reach 75,034 riyals by 2012. Furthermore, health care provision, modernization and expansion, as well as the establishment of more private facilities are also aiding the sector's growth. Market value is forecast to rise from 11.81 billion riyals in 2009 to roughly 14.04 billion riyals in 2012. Meanwhile, pharmaceutical demand per capita will increase from 465 riyals in 2009 to 15 riyals in 2012.