A research firm expects pharmaceutical sector in the Kingdom to grow 66% to $16.8 billion by 2034

By: Fahad Al-Talal

The size of the pharmaceutical market in the Kingdom is expected to reach $16.8 billion in 2034, a 66% increase compared to 2024, when it reached $10.1 billion. The pharmaceutical sector will register a compound annual growth rate of 5.2% until 2034, according to a report by Future Market Insights Research.

The report indicated that the significant growth in the pharmaceutical industry is due to a number of factors, most notably the expansion of biological therapies and the increasing demand for specialized drugs such as gene therapies and biosimilars, in addition to advances in medical technology that have contributed to improved diagnostic and treatment mechanisms. The accelerating use of artificial intelligence and machine learning in drug discovery and data analysis is also driving the sector’s efficiency and quality, along with the use of augmented reality technologies in medical training and 3D printing to produce customized medicines. The market witnessed an annual growth of 9%, the largest in the sector’s history, between 2019 and 2023, supported by extensive investments within Saudi Vision 2030 to reduce dependence on oil and diversify the economy. The Kingdom’s openness to foreign investment has also enabled the entry of new international companies, contributing to technology transfer and enhancing production and development capabilities.

The report indicated that consumers in Saudi Arabia prefer well-known branded medicines, which accounted for 72% of the market in 2024, driven by high confidence in quality and effectiveness. Traditional chemical medicines also represent the largest share of the market, at 86%, due to their lower cost, ease of manufacture, and availability to treat common diseases such as diabetes and heart disease.

Local and international companies are competing for Saudi market share, most notably SPIMACO, Tabuk Pharmaceuticals, Jamjoom Pharma, Julphar Saudi Arabia, and Modern Pharmaceuticals. These companies benefit from their local knowledge, strong distribution networks, and compliance with regulatory legislation. In a move to enhance local pharmaceutical self-sufficiency, Saudi Arabia announced in January 2024 an ambitious national plan to transform itself into a global biotechnology hub. The Sudair Industrial City also witnessed the opening of the first factory specializing in oncology drugs, among three new facilities in the pharmaceutical and food sectors. In June 2023, the Public Investment Fund launched Lifera, the Kingdom’s arm for the development and manufacture of biopharmaceuticals.

The report believes that the Saudi pharmaceutical market is poised for further expansion in light of population growth, rising rates of chronic diseases, and growing interest in preventative health. These factors together create fertile ground for continued growth, as the Kingdom prepares to become an advanced regional center for the pharmaceutical industry in the coming years.