Saudi Arabia Pharmaceutical CDMO Market to Grow with a CAGR of 5.45% through 2030
Increasing Domestic Demand for Pharmaceuticals and Health System
Modernization is expected to drive the Saudi Arabia Pharmaceutical CDMO Market
growth in the forecast period, 2026-2030
According to TechSci Research report, “Saudi Arabia
Pharmaceutical CDMO Market – By Region, Competition, Forecast &
Opportunities, 2030F”, the Saudi Arabia Pharmaceutical CDMO Market stood at
USD 1625.85 Million in 2024 and is anticipated to grow with a CAGR of 5.45% in
the forecast period, 2026-2030.
The government is significantly investing in the
pharmaceutical and healthcare sectors to diversify the economy. This includes
initiatives like Lifera, a biopharmaceutical CDMO supported by the Public
Investment Fund (PIF), designed to reduce reliance on foreign pharmaceutical
imports, create local employment opportunities, and foster the growth of a
competitive manufacturing industry. These efforts are complemented by the
government's streamlined regulatory processes and incentives that create a
conducive environment for local CDMOs to thrive.
Saudi Arabia is increasingly focusing on biologics,
vaccines, and monoclonal antibodies as high-growth therapeutic areas. This
shift toward biologics is expected to drive demand for advanced CDMO services,
particularly in the production of cell and gene therapies, as companies seek
local manufacturing partners capable of managing the complex production
processes inherent to these therapies. The integration of advanced
technologies, such as automation, AI, and digitalization, is enhancing the
efficiency, quality, and speed of pharmaceutical production in Saudi Arabia.
Local CDMOs are increasingly adopting these cutting-edge technologies, aligning
with the growing demand for precision medicine and personalized treatments. As
a result, Saudi Arabia is positioning itself as a competitive player in the
global pharmaceutical market by improving its manufacturing capabilities.
The evolving regulatory landscape in Saudi Arabia
plays a crucial role in fostering the growth of the pharmaceutical CDMO sector.
The Saudi Food and Drug Authority (SFDA) has introduced more transparent and
efficient approval processes, designed to expedite product market entry. These
regulatory reforms make Saudi Arabia an attractive destination for
pharmaceutical manufacturing investments, strengthening its position as a
regional hub for pharmaceutical production. Saudi Arabia's pharmaceutical CDMO
market expands, it faces intense competition from established global players,
particularly those in Asia, Europe, and North America. These regions have more
mature ecosystems, robust infrastructure, access to advanced technologies, and
extensive talent pools. Global CDMOs from these regions benefit from economies
of scale, well-established supply chains, and a wider range of services, which
enable them to offer lower production costs.
Saudi CDMOs must overcome these competitive pressures
by differentiating themselves through specialized services, such as biologics
production, and by emphasizing cost-effectiveness and reliability. However, the
relatively early stage of Saudi Arabia’s pharmaceutical manufacturing industry,
combined with the challenges mentioned earlier, limits its ability to directly
compete with these established players. Additionally, local CDMOs face barriers
to entering certain markets due to the established reputation and trust enjoyed
by their global counterparts, making it difficult for Saudi companies to
attract international clients and expand their market share.
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The Saudi Arabia Pharmaceutical CDMO Market is
segmented into product, application, workflow, regional distribution, and
company.
Based on its application, the Oncology segment has
emerged as the predominant market leader, Cancer is one of the leading causes
of death in Saudi Arabia, with the number of diagnosed cancer cases steadily
increasing. According to the Saudi Health Council, the country is experiencing
a growing cancer burden, with an annual rise in both the prevalence of cancer
and the demand for oncology treatments. This increasing incidence of cancer has
driven a surge in the demand for oncology drugs and biologics, which in turn
fuels the need for specialized manufacturing capabilities in the pharmaceutical
CDMO sector.
As the demand for cancer treatments such as
chemotherapy, immunotherapy, and targeted therapies increases, local
pharmaceutical manufacturers are increasingly focusing on offering services
that cater to these complex therapies. Oncology treatments, particularly those
involving biologics and monoclonal antibodies, require specialized
manufacturing processes, including cell line development, advanced
bioprocessing, and regulatory compliance. This has led to the establishment of
more advanced CDMO facilities in Saudi Arabia, designed to meet the specific
requirements of the oncology market. The oncology segment is characterized by rapid
advances in treatment options, including personalized medicine, immunotherapy,
CAR-T (Chimeric Antigen Receptor T-cell) therapies, and monoclonal antibodies.
These therapies are highly complex, requiring cutting-edge manufacturing
techniques, stringent quality controls, and specialized expertise. Saudi
Arabian CDMOs are increasingly focusing on these advanced therapies, which
require sophisticated biologic production capabilities, clean room
environments, and adherence to international regulatory standards. The shift
towards biologics in oncology, including monoclonal antibodies and gene
therapies, presents significant opportunities for local CDMOs in Saudi Arabia.
CDMOs are adopting advanced manufacturing processes such as cell culture and
fermentation technology to produce biologics for oncology treatments. This
specialized manufacturing capability is positioning Saudi Arabia as a
competitive player in the high-value oncology sector, attracting global
pharmaceutical companies looking for local manufacturing partners with
expertise in these intricate production processes
Major companies operating in Saudi Arabia
Pharmaceutical CDMO Market are:
- Tabuk Manufacturing Company
- Lifera
- Saudi Bio, Kingdom of Saudi Arabia
- Fresenius Kabi MENA
- Hikma Pharmaceuticals PLC
- Pfizer Scientific Technical Limited
Company
- Novartis AG
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“The Saudi Arabian pharmaceutical CDMO market is
poised for significant growth, driven by a combination of strategic government
initiatives, increasing domestic demand, and a focus on specialized therapeutic
areas such as oncology, biologics, and biosimilars. With the government's
Vision 2030 supporting the diversification of the economy and fostering a
favorable environment for local manufacturing, Saudi Arabia is positioning
itself as a competitive player in the global pharmaceutical supply chain. While
challenges such as competition from established global players remain, the
Kingdom's investments in advanced manufacturing technologies, regulatory
improvements, and infrastructure development create a strong foundation for
continued expansion. As local CDMOs enhance their capabilities and expand their
service offerings, Saudi Arabia is set to become a key hub for pharmaceutical
development and production in the Middle East and beyond.,” said Mr. Karan
Chechi, Research Director of TechSci Research, a research-based management
consulting firm.
“Saudi Arabia Pharmaceutical CDMO Market, By
Product (API, Synthetic, Solid, Liquid, Biotech, Drug Product, Oral Solid Dose,
Semi-solid Dose, Liquid Dose, Others), By Work Flow (Clinical, Commercial), By
Application (Oncology, Small Molecule, Biologics, Infectious Diseases,
Neurological Disorders, Cardiovascular Diseases, Metabolic Disorders,
Autoimmune Diseases, Respiratory Diseases, Ophthalmology, Gastrointestinal
Disorders, Hormonal Disorders, Hematological Disorders, Others), By Region,
Competition, Forecast & Opportunities, 2020-2030F”, has evaluated
the future growth potential of Saudi Arabia Pharmaceutical CDMO Market and
provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Saudi Arabia Pharmaceutical CDMO Market.
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