Saudi Arabia’s Pharmaceutical and Medical Device Industry Thrives with Over 200 Factories and $2.6 Billion in Investments
In a remarkable development, the number of pharmaceutical and medical device factories in Saudi Arabia has surged to 206, with investments totaling an impressive SR10 billion ($2.6 billion), according to official data released by the Ministry of Industry and Mineral Resources.
Pharmaceutical Sector Flourishes with SR7 Billion in Investments
The Ministry reported that the growth in this sector includes 56 pharmaceutical factories licensed by the Saudi Food and Drug Authority, with investments exceeding SR7 billion. The pharmaceutical industry in Saudi Arabia is making significant strides towards localization and reducing dependence on imports.
Medical Device Sector Sees Notable Advancements
The medical device sector in Saudi Arabia has witnessed remarkable advancements, with the global market valued at $500 billion and Saudi Arabia’s share estimated at $6.6 billion. The Kingdom now boasts 150 licensed medical device factories, representing a 200 percent increase since 2018, with investments reaching SR3.1 billion.
Successful Push Towards Localization and Reduction in Imports
The Kingdom’s efforts towards localization in the pharmaceutical industry have been successful, with the Saudi pharmaceutical market growing by 25 percent between 2019 and 2023, reaching $10 billion annually. The dependency on pharmaceutical imports has decreased from 80 percent in 2019 to 70 percent by 2023, showcasing a significant reduction in reliance on imports.
Government Initiatives Drive Growth and Investment Opportunities
In June 2022, the Ministry announced over SR11 billion in new investment opportunities in the vaccine and biopharmaceutical sectors, aligning with the Kingdom’s strategic goals of enhancing health security and establishing Saudi Arabia as a hub for pharmaceutical and biopharmaceutical production. Government initiatives such as the “Made in Saudi” program have also played a crucial role in promoting local products on international platforms.
Resilience During the COVID-19 Pandemic
Saudi Arabia’s industrial sector demonstrated notable resilience during the COVID-19 pandemic, ramping up domestic production capacity for essential medical supplies. The daily output of medical masks increased from 450,000 to 3 million, and the number of hand sanitizer factories grew from 12 to 70 in just three months. These efforts showcase the Kingdom’s ability to respond effectively to global disruptions and solidify its position in the pharmaceutical and medical device industries.