|
Forecast
Period
|
2026-2030
|
|
Market
Size (2024)
|
USD
30.07 Billion
|
|
CAGR
(2025-2030)
|
6.10%
|
|
Fastest
Growing Segment
|
Generic
Drugs
|
|
Largest
Market
|
Saudi
Arabia
|
|
Market
Size (2030)
|
USD
42.42 Billion
|
Market Overview
Middle East & Africa Pharmaceuticals Market was valued at USD 30.07 Billion in 2024 and is expected to reach USD 42.42 Billion by 2030 with a CAGR of 6.10% during the forecast period. The Middle
East & Africa Pharmaceuticals Market is primarily driven by several factors
including the region's growing population, increasing prevalence of chronic
diseases, and rising healthcare expenditure. As the population continues to
expand, there is a higher demand for pharmaceutical products to meet healthcare
needs. The increasing incidence of chronic diseases such as diabetes,
cardiovascular disorders, and cancer necessitates the use of pharmaceutical
interventions for management and treatment. Rising healthcare expenditure,
coupled with government initiatives to improve healthcare infrastructure and
access, further fuels market growth. Technological advancements, expanding
healthcare coverage, and a shift towards personalized medicine also contribute
to the market's expansion, offering opportunities for pharmaceutical companies
to innovate and meet the evolving healthcare demands of the region.
Key Market Drivers
Prevalence of Chronic Diseases
The Middle East & Africa (MEA) region is grappling with a sharp rise in chronic diseases, such as cardiovascular disorders, diabetes, cancer, and respiratory illnesses, which have become significant public health challenges. Cardiovascular disease (CVD) has emerged as the leading cause of death in the Middle East and North Africa (MENA), responsible for over a third of all fatalities, with more than 1.4 million deaths annually, according to the World Heart Federation. The prevalence of CVD varies widely within the region, with countries like Oman experiencing CVD-related deaths accounting for 40% of total deaths, while other countries like Somalia report lower figures (around 10%). This surge in chronic conditions is largely driven by lifestyle shifts resulting from rapid urbanization, changing diets, and increasing adoption of Western lifestyles. In urban environments, sedentary behaviors are more common due to less physical activity and long working hours, combined with poor dietary choices such as higher consumption of processed foods, salt, and unhealthy fats. Furthermore, the rise in pollution and environmental stressors exacerbates these health issues, contributing to respiratory diseases and other health complications.
In Africa, chronic diseases are becoming more prominent, accounting for over 15 million deaths annually between the ages of 30 and 69, according to the World Health Organization (WHO). Chronic conditions now account for a significant portion of mortality across various African countries, with some countries reporting that up to 88% of deaths are attributed to such diseases. This epidemiological shift is creating a substantial burden on the region’s healthcare systems. Pharmaceutical interventions emerge as indispensable tools in the management and treatment of chronic diseases, offering therapeutic solutions to alleviate symptoms, prevent disease progression, and improve overall quality of life for patients. From medications for controlling blood glucose levels in diabetes to antihypertensive drugs for managing cardiovascular disorders, pharmaceuticals play a pivotal role in addressing the diverse healthcare needs posed by chronic diseases in the Middle East & Africa.
Increasing Healthcare Expenditure
In response to the pressing healthcare needs of
their populations, governments and private entities in the Middle East &
Africa are redirecting significant financial resources towards bolstering
healthcare infrastructure, augmenting access to essential healthcare services,
and fortifying healthcare systems. This strategic allocation of resources
reflects a concerted effort to address longstanding challenges and bridge
existing gaps in healthcare provision across the region. The heightened
healthcare expenditure is underpinned by an acknowledgment of the pivotal role
that pharmaceuticals play in healthcare delivery. Medications constitute
indispensable components of healthcare interventions, spanning preventive
measures, disease management, and therapeutic treatments. As such, the
increased investment in healthcare infrastructure and systems is invariably
accompanied by a commensurate rise in spending on pharmaceutical products. This
symbiotic relationship underscores the intrinsic link between healthcare
expenditure and pharmaceutical consumption, highlighting the interdependence of
these sectors within the broader healthcare ecosystem. According to an Alpen Capital report, the region is home to over 742 hospitals with more than 106,693 beds, along with a vast network of primary healthcare centers, clinics, and laboratories. This robust infrastructure is continuously expanding, with an estimated 161 healthcare projects in the GCC alone, valued at approximately USD 53.2 billion. Furthermore, according to a report by UAE Ministry of Economy, healthcare spending in the UAE is projected to reach USD 26 billion by 2028, with around 700 healthcare projects under development and a total investment of USD 60.9 billion, primarily driven by the private sector. This surge in healthcare infrastructure and investment is expected to stimulate the demand for pharmaceutical products, as the growing healthcare services will require advanced medications and therapies to meet the needs of a rapidly expanding population. The increase in healthcare expenditure is a key driver of the pharmaceutical market's growth, as it fuels the need for more innovative and accessible healthcare solutions.
The upward trajectory of healthcare spending is
buoyed by shifting socio-economic dynamics, including rising income levels and
the burgeoning middle-class populace in the Middle East & Africa. As
disposable incomes increase and standards of living improve, individuals are
more inclined to allocate a larger proportion of their budget towards
healthcare-related expenses, including pharmaceutical purchases. This trend not
only reflects an enhanced ability to afford essential medications but also underscores
a growing recognition of the importance of healthcare investment in
safeguarding individual and familial well-being.
Government Initiatives and Healthcare Reforms
Governments in the Middle East & Africa are
implementing various initiatives and healthcare reforms to address public
health challenges, improve healthcare outcomes, and enhance access to essential
medicines. These initiatives include expanding healthcare coverage,
implementing national health insurance schemes, and investing in disease prevention
and management programs. Governments are promoting local pharmaceutical
manufacturing and research to reduce dependency on imports and enhance
healthcare self-sufficiency. Pharmaceutical companies stand to benefit from
these government initiatives, as they create opportunities for market entry,
collaboration, and growth in the region's pharmaceutical sector.
Technological Advancements and Innovation
Technological advancements in healthcare, including
biotechnology, genomics, and precision medicine, are driving innovation in the
Middle East & Africa pharmaceuticals market. Pharmaceutical companies are
leveraging these technologies to develop novel therapies, personalized
medicines, and targeted treatments for various diseases. Advancements in drug delivery
systems, such as nanotechnology and biodegradable implants, are improving the
efficacy and safety of pharmaceutical products. The adoption of digital health
solutions, telemedicine, and electronic medical records further enhances
healthcare delivery and patient outcomes, creating new opportunities for
pharmaceutical companies to innovate and differentiate their offerings in the
market.
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Key Market Challenges
Counterfeit Medicines and Drug Quality Concerns
Counterfeit medicines pose a significant challenge
to the Middle East & Africa Pharmaceuticals Market, threatening patient
safety, public health, and the integrity of the pharmaceutical supply chain.
The proliferation of counterfeit drugs, driven by factors such as lax
regulatory enforcement, porous borders, and limited access to genuine
medications, undermines trust in pharmaceutical products and healthcare
systems. Patients may unknowingly purchase substandard or falsified medicines,
exposing them to ineffective treatments, adverse health outcomes, and
antimicrobial resistance. Addressing the issue of counterfeit medicines
requires concerted efforts from governments, regulatory authorities,
pharmaceutical manufacturers, and other stakeholders to strengthen regulatory
enforcement, improve supply chain transparency, and raise public awareness
about the risks associated with counterfeit drugs.
Intellectual Property Rights and Patent Protection
Intellectual property rights (IPR) and patent
protection issues present challenges for pharmaceutical companies operating in
the Middle East & Africa Pharmaceuticals Market. Differences in patent
laws, enforcement mechanisms, and legal frameworks across countries complicate
the protection of intellectual property rights and patents for pharmaceutical
products. Generic competition, compulsory licensing, and parallel imports pose
risks to the exclusivity and market share of branded pharmaceuticals, impacting
revenue streams and profitability for innovative pharmaceutical companies.
Strengthening intellectual property rights, enforcing patent protection laws,
and promoting innovation-friendly policies are essential to incentivizing
research and development investment, fostering innovation, and ensuring a
sustainable pharmaceutical ecosystem in the Middle East & Africa.
Key Market Trends
Expanding Access to Healthcare Services
Efforts to improve healthcare access, particularly in underserved and rural areas, are gaining significant traction across the Middle East & Africa. According to the United Nations Office for Coordination of Humanitarian Affairs, the MENA region faced the highest global need for humanitarian aid in 2023. This has led governments, NGOs, and international agencies to invest in healthcare infrastructure, including mobile clinics, community health programs, and new facilities designed to reach remote populations. As access to essential medicines and treatments increases, so does the demand for pharmaceuticals, presenting a growth opportunity for the industry.
The UAE serves as a notable example, ranking 19th in the 2022 World Index of Healthcare Innovation, and has emerged as a leader in digital health by integrating telemedicine and AI to improve healthcare access and efficiency. By 2024, approximately 3.4 million individuals in the UAE were using digital health services. Pharmaceutical companies are adopting new distribution models and leveraging digital health technologies to ensure that patients in rural and underserved areas have access to necessary medications. These initiatives include telemedicine platforms offering virtual consultations and prescription services, as well as community outreach programs aimed at improving the affordability and availability of medications. The convergence of healthcare infrastructure development, digital health advancements, and innovative pharmaceutical distribution strategies is creating a more inclusive healthcare environment across the region. This enhanced accessibility will continue to fuel demand for pharmaceutical products, which are essential to improving the overall health and well-being of the population.
Medical Tourism and Healthcare Investments
The Middle East & Africa region is increasingly becoming a prominent destination for medical tourism, with countries such as the United Arab Emirates, Saudi Arabia, and South Africa attracting international patients seeking top-tier healthcare services. Dubai, in particular, experienced substantial growth in medical tourism in 2022, welcoming 674,000 medical tourists who collectively spent USD 270.08 million, marking an increase of USD 71.33 million from the previous year. According to the Dubai Health Authority (DHA), 39% of medical tourists in Dubai came from Asia, 22% from Europe and the Commonwealth of Independent States, and 21% from Arab and GCC countries. This surge in medical tourism drives demand for pharmaceutical products and medical supplies, as international patients require medications before, during, and after medical procedures. Saudi Arabia has also emerged as an attractive medical tourism hub, thanks to its advanced IT infrastructure, including remote care systems for diabetes management, as well as skilled physicians specializing in areas like brain surgery and endoscopy. The influx of healthcare investments from international firms, private equity, and venture capital is accelerating growth in the region's pharmaceutical sector. These investments are enhancing healthcare infrastructure, fostering research, and expanding pharmaceutical manufacturing capabilities, thereby driving market innovation and expansion.
Segmental Insights
Drug Type Insights
Based on Drug Type, Generic Drugs emerged as the fastest growing segment in the Middle East & Africa Pharmaceuticals market during the forecast period. One of the main contributors is the cost-effectiveness of generic drugs, which are more affordable than branded alternatives. This affordability makes them an attractive option for both healthcare systems and patients, particularly in countries with limited healthcare budgets. As access to healthcare expands, especially in underserved and rural areas, the demand for essential medications rises, further boosting the adoption of generic drugs. Additionally, many governments in the region are promoting the use of generics to manage healthcare costs and ensure broader access to medicines. The expiration of patents for several branded drugs has also increased the availability of generics, adding to their growing market share. With these factors in play, generic drugs are increasingly becoming the preferred choice, positioning them as the fastest growing segment in the region’s pharmaceutical market.
Product Type Insights
Based on Product Type, prescription drugs emerged as the dominating segment in the Middle East & Africa Pharmaceuticals market in 2024. Prescription drugs, also known as Rx medications, require a healthcare
professional's authorization, such as a physician, dentist, or nurse
practitioner, before they can be dispensed to patients. These medications are
often used to treat acute and chronic medical conditions, ranging from
infections and chronic diseases to mental health disorders and oncological
conditions.
Several factors contribute
to the dominance of prescription drugs in the Middle East & Africa
Pharmaceuticals Market. The prevalence of chronic diseases, such as diabetes,
hypertension, and cardiovascular disorders, necessitates the use of
prescription medications for long-term disease management and treatment.
Healthcare providers play a crucial role in diagnosing these conditions,
prescribing appropriate medications, and monitoring patient responses,
underscoring the importance of prescription drugs in clinical practice. Prescription
drugs are typically associated with higher efficacy, potency, and specificity
compared to OTC medications, as they are tailored to address specific medical
conditions and individual patient needs. These medications often undergo
rigorous clinical trials, regulatory approval processes, and post-market
surveillance to ensure safety, efficacy, and quality standards, instilling
confidence in healthcare providers and patients alike.
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Country Insights
Based on Country, Saudi Arabia emerged as the dominating country in the Middle East & Africa Pharmaceuticals market in 2024. However, Saudi Arabia undeniably holds significant
influence and prominence within this market due to a combination of factors
that contribute to its robust pharmaceutical sector. One key factor
contributing to Saudi Arabia's influence is its strong economy, driven
primarily by oil exports and government initiatives aimed at diversification.
The country's substantial healthcare expenditure reflects its commitment to
providing comprehensive healthcare services to its population, which exceeds 30
million people. This investment in healthcare infrastructure and services
creates a fertile ground for pharmaceutical companies to thrive, as they cater
to the growing healthcare needs of the population.
Saudi Arabia's Vision 2030 initiative, a
comprehensive roadmap for economic and social development, places a strong
emphasis on enhancing the healthcare sector. As part of this vision, the
government has undertaken significant reforms aimed at improving healthcare
accessibility, quality, and efficiency. These reforms include investments in
healthcare infrastructure, digital health technologies, and pharmaceutical
research and development, all of which contribute to Saudi Arabia's prominence
in the pharmaceutical market. The country's strategic location in the Middle
East also plays a crucial role in its dominance within the pharmaceutical
industry. Situated at the crossroads of Europe, Asia, and Africa, Saudi Arabia
serves as a strategic hub for pharmaceutical trade, investment, and
collaboration. Its proximity to key markets, coupled with a well-developed
transportation and logistics infrastructure, makes it an attractive destination
for pharmaceutical companies seeking to expand their presence in the region.
Recent Developments
- In
December 2024, six deals valued over 3 billion Saudi riyals (USD 798 million)
were announced at the inaugural CPHI Middle East event in Riyadh, focusing on
advancing research, local manufacturing, and logistics in the Kingdom's
pharmaceutical sector. A USD 266 million collaboration agreement was signed
between the Ministry of Health (MoH), the Ministry of Investment (MISA), the
Ministry of Industry and Mineral Resources (MIMR), and Vertex Pharmaceuticals
to localize production and enhance treatments for sickle cell disease and
thalassemia. Additionally, UAE-based Julphar committed SAR300 million (USD 80
million) to establish a cutting-edge biopharma facility for advanced biologics.
- In
December 2024, ISU Abxis, a subsidiary of the ISU Group, accelerated the
introduction of its Gaucher disease treatment, Abcertin (imiglucerase), in the
Middle East and North Africa (MENA) market. The company entered into an
exclusive licensing and supply agreement with Tabuk Pharmaceuticals
Manufacturing Company in Saudi Arabia during the CPHI Middle East 2024 event.
Abcertin is a biosimilar of Sanofi Genzyme’s Cerezyme, developed by ISU Abxis.
- In
September 2024, Biocon entered into a licensing and supply agreement with Tabuk
Pharmaceutical Manufacturing Company to commercialize its GLP-1 products for
diabetes and chronic weight management in selected Middle Eastern countries.
According to the terms, Biocon will handle product development and
manufacturing, while Tabuk Pharmaceuticals will hold marketing authorization
rights and be responsible for registering, importing, and promoting the
products in the region. The agreement also includes provisions for expanding to
other GLP products and the potential for a technology transfer to enable local
manufacturing in the future.
- In
June 2024, BeiGene and NewBridge Pharmaceuticals made the strategic decision to
end their partnership. This move aligns with BeiGene's objective to strengthen
its presence and manage operations directly in the MENA region. The
partnership, which began in 2020, involved sales, distribution, and
commercialization of BRUKINSA (Zanubrutinib) in the MENA area. Thanks to this
collaboration, BRUKINSA received approvals from health authorities in several
regions and is currently marketed in multiple territories, with more approvals
expected. The separation is carefully planned, with a country-by-country
timeline beginning in June 2024 and concluding by March 31, 2025.
- In
April 2024, HK inno.N's GERD drug K-CAB is extending its reach into the Middle
East and North Africa (MENA) region, marking a significant expansion beyond its
established presence in China, Asia, North America, and South America. The
company has reported that K-CAB is continuing to strengthen its global market
position with its entry into the MENA markets. HK inno.N announced on Tuesday
that it has partnered with Tabuk Pharmaceuticals, a prominent Saudi Arabian
pharmaceutical firm, to export the finalized product of K-CAB Tablets
(tegoprazan) to the Middle East and North Africa. Under this agreement, Tabuk
Pharmaceuticals obtains exclusive rights for the distribution and
commercialization of K-CAB within these regions, enhancing the drug's
accessibility and availability to patients in the Middle East and North Africa.
- In
April 2024, Cigalah Healthcare, a prominent entity in Saudi Arabia's healthcare
sector specializing in pharmaceuticals and medical equipment entered into a
landmark partnership with Abdi Ibrahim, a leading pharmaceutical company based
in Turkey. This collaboration aims to introduce high-quality pharmaceutical
products into the Saudi market, thereby enhancing healthcare standards across
the region and fostering greater regional cooperation within the pharmaceutical
industry. This joint venture marks a significant milestone as it involves both
direct importation of products and local manufacturing with a clear timeline
for full localization within the Kingdom. This initiative is expected to create
numerous job opportunities for Saudi nationals. Cigalah Healthcare, leveraging
its manufacturing division 'Alpha Pharma', will strategize market entry for
promising products. The agreement encompasses a range of therapeutic areas
including Central Nervous System (CNS), Cardiovascular system (CVS),
Respiratory system, and Oncology.
- In
January 2024, Glenmark Specialty S.A. (GSSA), a subsidiary of Glenmark
Pharmaceuticals Ltd. (Glenmark), announced the execution of a license agreement
with JIANGSU ALPHAMAB BIOPHARMACEUTICALS CO., LTD (Jiangsu Alphamab) and 3D
MEDICINES INC. (3D Medicines) (collectively referred to as the Licensors). This
agreement grants GSSA an exclusive license for KN035 (Envafolimab) in multiple
regions including Middle East and Africa. According to the terms of the
agreement, Jiangsu Alphamab and 3D Medicines will exclusively supply
Envafolimab to GSSA, which will be responsible for the development,
registration, and commercialization of the product specifically for the
oncology indication within the Territory. Outside the Territory, 3D Medicines
retains the rights to develop and market Envafolimab for any other purposes.
Key Market Players
- Julphar
(Gulf Pharmaceutical Industries)
- Bayer Middle East FZE
- Niner Pharmaceuticals LLC
- Pfizer Gulf FZ-LLC
- Novo Nordisk Pharma Gulf FZ LLC
- Roche Pharmaceutical Middle East FZCO
- AstraZeneca FZ LLC
- Hikma UAE
- Merck Serono Middle East Fz-Ltd.
- Abbott Laboratories S.A.
|
By Drug Type
|
By Product Type
|
By Application
|
By Distribution Channel
|
By Country
|
- Generic Drugs
- Branded Drugs
|
- Prescription Drugs
- Over-The-Counter Drugs
|
- Cardiovascular
- Musculoskeletal
- Oncology
- Anti-infective
- Metabolic Disorder
- Others
|
- Retail Pharmacy
- Hospital Pharmacy
- E-Pharmacy
|
- Saudi Arabia
- UAE
- South Africa
- Egypt
- Algeria
- Kuwait
- Jordan
- Tunisia
- Morocco
- Lebanon
|
Report Scope:
In this report, the Middle East & Africa
Pharmaceuticals Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Middle East & Africa Pharmaceuticals
Market, By
Drug Type:
o Generic Drugs
o Branded Drugs
- Middle East & Africa
Pharmaceuticals Market, By Product Type:
o Prescription Drugs
o Over-The-Counter Drugs
- Middle East & Africa
Pharmaceuticals Market, By Application:
o Cardiovascular
o Musculoskeletal
o Oncology
o Anti-infective
o Metabolic Disorder
o Others
- Middle East & Africa
Pharmaceuticals Market, By Distribution Channel:
o Retail Pharmacy
o Hospital Pharmacy
o E-Pharmacy
- Middle East & Africa
Pharmaceuticals Market, By Country:
o Saudi Arabia
o UAE
o South Africa
o Egypt
o Algeria
o Kuwait
o Jordan
o Tunisia
o Morocco
o Lebanon
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Middle East & Africa Pharmaceuticals Market.
Available Customizations:
Middle East & Africa Pharmaceuticals market report
with the given market data, TechSci Research offers customizations according to
a company's specific needs. The following customization options are available
for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Middle East & Africa Pharmaceuticals Market is
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