Saudi Arabia holds 59% of the total Pharma market in the Gulf
According to a leading private healthcare technology company in Gulf, Saudi Arabia will retain its leading position at least for the next half a decade. The Islamic state holds around 59% of the entire pharmaceutical market and soon all of the Gulf nations together will capture the industry with investments going above $12 billion by the end of 2020.
By the year 2012, Saudi Arabia had a solo market of $5.1 billion in the medication sector; it earns the highest per capita share of drugs sales in USD format and goes up to $175 per year. This is a very strong earning bracket with considerations of the strong support offered by the government into the healthcare sector.
According to the market research, the investment in the sector specified to this region is projected to cross the $60 billion mark by the finish of 2025. The entire healthcare is ought to see an upsurge as these nations will need around 140 new hospitals in order to serve the increased demand levels. The whole of the Middle East region is likely to be the highest spending region on the globe in connection with the Healthcare Industry. As per a market research, the Saudi Arab region will be positioned as the highest spending individual area followed by Egypt, UAE, Kuwait and Qatar.
The study further indicates that there will be innumerable projects coming up under the pharmaceutical industry. These spending will include the construction drugs manufacturing units and the total valuation for the same is projected to reach $125 billion by 2015. This stat is viewed as a game changing aspect for the Middle East pharmaceutical industry as the figures were comparatively low at $12 billion in 2008, $16 billion in 2011, and $18 billion in 2012 with an annual average growth rate of 10%.
Highly increasing population at a lesser span, constantly growing disposable income levels, extremely health aware population are reasons behind the unprecedented growth of the healthcare sector in the gulf. The population was estimated to be around 37.5 million by the year 2007; the same is projected to go up to 50 million by the finish of 2017.
Moreover, the growth of aging population is also marked as an essential factor as the above 60 population is forecasted to reach a count of 17.8 million by 2050 from 1.9 million in 2012. According to the GCC (Gulf Cooperation Council) report there is an outburst of serious disorders such as diabetes, cardiovascular ailments and other chronic diseases affecting a large number of the population from the region.
Despite the developments, the Middle East pharmaceutical industry is not able to completely meet the ends as the demands are exceeding the supplies more often than not. The GCC countries are still importing 95% of their Pharma requirements as the local manufacturing units are unable to manage the huge demands. Another issue that works as a hurdle is the fake drug industry which is omnipresent in the region and the higher cost of medicines which are costlier than the global average.
However, these limitations are worked upon according to the GCC report as the numbers of major manufacturers have gone up in numbers (15-20) along with the business ventures under the sector which are encouraging foreign investments from all over. These actions along with the growing demands for medicines are sure to improve the sector for betterment in the future.