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The pharmaceutical market in Saudi Arabia is set to grow from $4.5 billion in 2015 to $6 billion by 2020, representing a compound annual growth rate (CAGR) of 7.4%, according to research and consulting firm GlobalData.
The company's latest report states that Saudi Arabia is one of the largest pharmaceutical markets in the Middle East, and its impressive expansion can be attributed to a growing population, rising wealth levels, and demand for patented pharmaceutical products.
Mr Adam Dion, GlobalData's Senior Analyst covering Industry Dynamics, explains: "Due to the increase of chronic diseases and Saudi Arabia's rising wealth, there is a huge demand for patented products, representing a significant opportunity for market players. Indeed, this has spurred multi-national companies to set up manufacturing plants in Saudi Arabia, either independently or through joint ventures."
Saudi Arabia is planning one of the largest healthcare expansions in the world, with the Ministry of Health planning to spend $18.5 billion annually over the next 10 years.
Its investment plan is to improve domestic manufacturing of medical devices and pharmaceuticals, which would create job opportunities and enhance the country's knowledge pool. In order to meet demand, strong private sector partnerships would need to be established.