The Kingdom of Saudi Arabia’s pharmaceutical and medical devices sector is undergoing a remarkable transformation, propelling it toward a future of health security and self-sufficiency. This dynamic sector is recognized as a cornerstone of the national industrial strategy and is poised to become a global powerhouse.
Driven by a commitment to achieving pharmaceutical and health security, the Kingdom is strategically building its independence in this vital field. By attracting leading global companies and fostering partnerships, the country is actively seeking technology and knowledge exchange while creating a robust domestic industrial base for regional presence and beyond.
The Ministry of Industry and Mineral Resources is spearheading this transformation, identifying key areas for localization and forging strategic partnerships with top global companies in the field. This collaborative approach, encompassing both public and private sectors, is laying the foundation for sustainable growth in the healthcare
sector. The focus on local content, advanced medical technology, and foreign investment ensures the Kingdom’s position as a leading center for this promising industry.
The Cabinet’s decision to establish a committee for vaccines and biopharmaceuticals manufacturing, chaired by Minister of Industry and Mineral Resources Bandar Ibrahim Alkhorayef, is a significant step toward localizing the pharmaceutical industry and achieving pharmaceutical and health security for the Kingdom. This initiative also plays a major role in improving the level of healthcare services provided and transforming the Kingdom into a key hub for this promising industry.
The committee aims to identify the best technologies in the field of vaccines and biopharmaceuticals that the Kingdom needs to invest in for knowledge transfer and localization, as well as building local industrial platforms with international standards. This will enable the Kingdom to establish its position as an industrial force and a logistical platform for vaccine
s and biopharmaceuticals in the region, the Middle East, and the Islamic world.
During an official visit by Minister Alkhorayef to the Federative Republic of Brazil at the end of July, he met with government officials and heads of prominent Brazilian pharmaceutical companies. They discussed opportunities for knowledge transfer and innovation in the pharmaceutical sector, as well as the latest vaccine manufacturing technologies and development.
Minister Alkhorayef visited the globally leading Butantan Institute in Brazil, known for its development of vaccines and production of pharmaceutical and biopharmaceutical products. During his meeting with a number of Brazilian investors, they expressed their willingness to partner with the Kingdom in all targeted industrial sectors of the national industrial strategy, including pharmaceutical and vaccine industries, due to Brazil’s advanced expertise in this sector. Minister Alkhorayef emphasized the importance of leveraging the strengths of both sides, particularl
y in developing supply chains, enhancing technological exchange, and driving innovation to achieve sustainable development and economic resilience.
Saudi Arabia’s pharmaceutical and medical devices industry has experienced a remarkable surge in recent years. The number of factories has reached 206, including 56 licensed and registered pharmaceutical facilities. These factories represent a substantial investment exceeding SAR7 billion.
The government’s commitment to bolstering this sector is evident in the announcement by Minister Alkhorayef in June 2022. He unveiled investment opportunities worth over SAR11 billion specifically targeting the vaccines and biopharmaceuticals industry. This strategic move reflects the Kingdom’s ambition to achieve pharmaceutical and health security and establish itself as a prominent hub for this promising industry.
The global pharmaceutical market size is around $1.1 trillion, with the Middle East and Africa region accounting for $31 billion. The Kingdom is considered the
largest pharmaceutical market in the Middle East and Africa region, with its pharmaceutical market value estimated at $10 billion, approximately 32% of the total share of the Middle East and Africa region in the global market.
The pharmaceutical market in the Kingdom has witnessed significant growth between 2019 and 2023, with an average growth rate of 25%, increasing the market size from $8 billion to $10 billion annually. This growth confirms the importance and attractiveness of the Saudi pharmaceutical market for investment, as the pharmaceutical sector has made progress in its localization rates, reducing pharmaceutical imports from 80% in 2019 to 70% in 2023.
This growth in the pharmaceutical industry sector in Saudi Arabia has resulted in the introduction of several advanced technologies and high-quality products for the first time at the full manufacturing level. For example, the first biosimilar product, enoxaparin, was completely manufactured in the Kingdom through full development and registrati
on with the Saudi Food and Drug Authority. Additionally, the region’s first factory dedicated to manufacturing advanced respiratory medications, such as dry powder inhalers and metered dose inhalers, has been completed.
Demonstrating its commitment to excellence, Saudi Arabia has established manufacturing capabilities for lyophilized products processed by freeze-drying. The Kingdom also has the only GMP manufacturing facility in the GCC for active pharmaceutical ingredients (APIs).
The global medical devices and supplies market is experiencing robust growth, with an estimated value of $500 billion. Saudi Arabia, a key player in this expanding market, has a significant share estimated at $6.6 billion. The Kingdom’s commitment to this sector is evident in the rapid expansion of its manufacturing base, with the number of licensed factories doubling since 2018 to reach approximately 150.
Saudi Arabia’s medical devices sector has experienced remarkable growth in 2023, demonstrating the Kingdom’s commitment t
o its national industry goals. Investments in the sector reached a substantial SAR3.1 billion. This robust growth highlights the sector’s dynamism and its vital contribution to the Kingdom’s economic development.
Over the past three years, the sector has achieved significant milestones, including the production of advanced ventilators for both intensive care units and home use. The Kingdom has also successfully localized the production of blood glucose monitors and strips, establishing the first factory of its kind in the Middle East. Furthermore, the localization of surgical instruments, bone fixation devices, and prosthetic devices has been achieved.
The sector has also made strides in producing specialized devices for treating heart arrhythmia and monitoring physiological functions and vital signs. Additionally, non-invasive devices for monitoring oxygen levels, hemoglobin levels, and carbon monoxide levels have been localized. The sector has also witnessed expansion in the production of clinical labor
atory consumables, such as biological media, sample collection tubes, culture dishes, and laboratory reagents.
This growth has been accompanied by technological advancements in the newly established medical devices manufacturers, such as the manufacturing of peripheral and cardiac balloon catheters and stents, and the production of electronic-based advanced technical devices and software, including defibrillators and patient monitors. These are expected to positively contribute to the development of local value chains, including artificial ventilators, medical ultrasound imaging devices, patient monitors, glucometers, prosthetic devices, and orthopedic implants.
The increasing regional and local demand is expected to drive Saudi exports of medical devices and supplies, contributing to the development of the medical sector regionally and enhancing its response to the demand for these devices and products. The Ministry of Industry and Mineral Resources, through its ecosystem, plays a central role in support
ing and marketing Saudi products through the “Saudi Made” program at global and regional exhibitions.
The ministry continuously works on enhancing value chains through alignment with relevant research and development entities. It also seeks to achieve competitive advantages by providing raw materials locally through coordination between various industrial sectors, such as metals, petrochemicals, and medical devices. These developments represent a significant step toward enhancing the Kingdom’s position as a leading destination in the medical devices and supplies industry regionally and globally.
The Ministry of Industry and Mineral Resources aims to localize 80% to 90% of the government’s insulin procurement needs in the Kingdom, and a similar percentage in the vaccine industry. It also intends to attract quality investments in the pharmaceutical and healthcare sectors, export to foreign markets, develop local content in the pharmaceutical and medical devices sector by providing financial incentives to ph
armaceutical and medical devices companies, offering technical assistance to medical devices and pharmaceutical companies, supporting local medical devices used by hospitals in Saudi Arabia, and enhancing the role of the ‘Made in Saudi Arabia’ and ‘Saudi Technology’ initiatives in localizing the healthcare industry.
The recent coronavirus pandemic showcased the Kingdom’s qualitative industrial capabilities in the pharmaceutical and medical devices sectors and its quick response. The Ministry of Industry and Mineral Resources succeeded in stimulating national factories to produce essential goods required during that period, increasing the production capacity of medical mask factories from 450,000 to three million masks per day in record time, despite the global disruption of supply chains.
The ministry also contributed to increasing the number of sanitizer factories from 12 to 70 within three months by providing key raw materials supplies, such as high-purity medical alcohol, locally. This rapid response w
as supported by significant government support and integrated initiatives to stimulate the industrial sector.
Source: Saudi Press Agency