Saudi Arabia Pharmaceuticals Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Growth Factors of Saudi Arabia pharmaceuticals Market

The Saudi Arabia pharmaceuticals market was valued at USD 10.50 billion in 2024, is projected to grow to USD 10.86 billion in 2025, and is expected to reach USD 16.52 billion by 2032, registering a CAGR of 6.18% during the forecast period (2025-2032).

Saudi Arabia's pharmaceutical industry is undergoing a major transformation, driven by government-led localization efforts, healthcare infrastructure expansion, and growing R&D investments. The market, which has traditionally relied on imported pharmaceuticals, is now shifting toward domestic production and innovation, aligning with Saudi Vision 2030 goals to achieve healthcare self-sufficiency.

The increasing prevalence of chronic and infectious diseases, coupled with rising public health awareness and expanding hospital networks, is boosting the country's demand for pharmaceuticals. In October 2024, Eisai Co., Ltd. established a new sales subsidiary in Riyadh, reflecting growing confidence among global pharmaceutical leaders in Saudi Arabia's expanding healthcare ecosystem.

Market Trends

Advancement in Treatment Models and Research Collaborations

A significant trend shaping the Saudi pharmaceutical market is the focus on advanced treatment models, including immunotherapies and gene-based drugs. The government is collaborating with international pharmaceutical and research organizations to bring breakthrough treatments to the Middle East.

In May 2025, ImmunityBio, Inc. signed a strategic Memorandum of Understanding (MoU) with King Faisal Specialist Hospital & Research Centre (KFSHRC) and King Abdullah International Medical Research Center (KAIMRC) to introduce the FDA-approved Cancer BioShield platform in Saudi Arabia. This initiative aims to establish the Kingdom as a regional hub for immunotherapy and cancer research, expanding patient access to innovative biologic treatments.

According to the General Authority for Statistics (2023), R&D expenditure accounted for 50% of total healthcare research spending in 2021 - a strong indicator of the nation's growing focus on innovation-driven healthcare.

Market Dynamics

Drivers - Surge in Investments and Localization Efforts

The Saudi government's initiatives to attract pharmaceutical investments are a major growth driver. In December 2024, the CPHI Middle East announced USD 798 million in funding to accelerate local manufacturing, research, and logistics, enhancing the pharmaceutical ecosystem's competitiveness.

Rising chronic disease prevalence - including cardiovascular disorders, diabetes, and cancer - is increasing demand for both generic and branded drugs. These developments are aligning the country's healthcare strategy with sustainable pharmaceutical production.

Restraints - Lengthy Regulatory Approval Processes

The Saudi Food and Drug Authority (SFDA) maintains rigorous approval standards, which can delay market entry. In 2021, the SFDA's average approval time for new medications was 119 days, biologics 105 days, and generics 109 days, creating barriers for multinational companies looking to introduce advanced therapies quickly.

Streamlining these processes remains a critical challenge for market acceleration.

Segmentation Insights

By Type

The drugs segment dominated the market in 2024, accounting for around 95% of total revenue, driven by the increasing prevalence of chronic diseases and rising use of both prescription and OTC medications.

Meanwhile, the vaccines segment is poised for significant growth, supported by large-scale immunization initiatives. In February 2025, the Kingdom allocated USD 500 million to the Global Polio Eradication Initiative (GPEI), reflecting its commitment to global and domestic vaccination efforts.

By Disease Indication

The cardiovascular segment led the Saudi pharmaceuticals market in 2024, supported by high disease incidence linked to sedentary lifestyles and poor dietary habits. According to the World Heart Federation (2021), the age-standardized CVD incidence rate in Saudi Arabia stood at 1,218 per 100,000 people.

The oncology and diabetes segments are also witnessing rapid growth due to early diagnosis initiatives and the availability of advanced therapies.

By Drug Type

Small molecules/conventional drugs currently dominate, but biologics and biosimilars are projected to grow faster between 2025 and 2032, fueled by increasing SFDA approvals and collaborations with global biotech firms.

In March 2024, Formycon and MS Pharma gained SFDA authorization for FYB201 (Ravegza) - a biosimilar to Lucentis - used for age-related macular degeneration, highlighting growing biosimilar adoption.

By Route of Administration

The oral segment held around 54% market share in 2024, valued at USD 5.67 billion, thanks to patient convenience and high product availability. However, the parenteral route is gaining traction in hospitals due to faster therapeutic effects and new product approvals.

For example, Venus Remedies Ltd. obtained SFDA approval in June 2023 for Docetaxel injections, used in various cancers including breast and prostate.

By Age Group

The adult segment dominates the market and is expected to grow at a CAGR of 6.2%, driven by the high burden of age-related and genetic diseases. In August 2025, Agios Pharmaceuticals, Inc. received SFDA approval for PYRUKYND (mitapivat), a treatment for alpha- and beta-thalassemia in adults - strengthening therapeutic offerings for chronic disorders.

By Distribution Channel

Drug stores and retail pharmacies lead distribution, driven by patient convenience and strong product availability. The rise of public-private healthcare collaborations is also reshaping the retail pharmacy landscape.

In February 2025, Bayer partnered with Al-Dawaa Medical Services, one of Saudi Arabia's largest pharmacy chains, to promote its "Protect Your Heart" national cardiovascular awareness campaign - integrating diagnosis and treatment accessibility under one platform.

Competitive Landscape

Saudi Arabia's pharmaceutical market features a blend of multinational leaders and domestic manufacturers, with strategic partnerships enhancing local production capabilities.

Key Players:

• Pfizer Inc. (U.S.)
• Sanofi (France)
• AstraZeneca (U.K.)
• Novartis AG (Switzerland)
• SPIMACO (Saudi Arabia)
• Tabuk Pharmaceuticals (Saudi Arabia)
• Amgen Inc. (U.S.)
• Gilead Sciences, Inc. (U.S.)
• Takeda Pharmaceutical Company Limited (Japan)

Recent Developments:

• July 2025: CEL-SCI partnered with Saudi pharma firms for Multikine (Leukocyte Interleukin Injection) commercialization to treat head and neck cancers.
• March 2022: Cumberland Pharmaceuticals and Tabuk Pharma launched Vibativ (telavancin) injection for bacterial infections in the Middle East.

Conclusion

The Saudi Arabia pharmaceuticals market is entering a period of strategic expansion, driven by localization policies, rising healthcare investments, and growing disease prevalence. With a strong government focus on biologics, generics, and advanced therapies, and continuous inflow of global partnerships, the market is expected to sustain robust growth through 2032.

Market Size Overview:

• 2024: USD 10.50 Billion
• 2025: USD 10.86 Billion
• 2032: USD 16.52 Billion
• CAGR (2025-2032): 6.18%
• ATTRIBUTE DETAILS

Segmentation By Type

• Drugs
  • Prescription
  • OTC
• Vaccines
  • Bacterial
  • Viral

By Disease Indication

• Oncology
• Diabetes
• Infectious
• Cardiovascular
• Neurology & Psychiatry
• Respiratory
• Renal
• Obesity
• Autoimmune
• Ophthalmic
• Gastrointestinal
• Dermatology
• Hematology/Blood
• Liver/Hepatology
• Genetic
• Hormonal/Endocrine
• Women's Health
• Reproductive
• Allergies
• Others

By Drug Type

• Biologics & Biosimilars
  • Antibodies
    • Monoclonal Antibodies (mAbs)
    • Bispecific Antibodies
    • Antibody-Drug Conjugates (ADCs)
    • Others
  • Vaccines
  • Peptides/Peptide-Drug Conjugates (PDCs)
  • Others
  • Small Molecules/Conventional Drugs

By Route of Administration

• Oral
• Parenteral
• Topical
• Inhalation
• Others

By Age Group

• Pediatric
• Adults

By Distribution Channel

• Hospital Pharmacies
• Drug Stores & Retail Pharmacies

Online Pharmacies