Mid­dle East and Africa pharma econ­omy to reach US$38.8bn by 2021

Chemical Industry Digest - - News & Views -


mar­ket con­di­tions are driv­ing in­creased growth across the Mid­dle East and North Africa (MENA) pharma mar­ket – age­ing and gen­tri­fy­ing pop­u­la­tions, in­creased health­care spend­ing, and a mod­ernising sup­ply chain are trans­form­ing prospects in the re­gion.

To­tal pharma sales have reached an im­pres­sive $32 bil­lion across MENA as a whole – the Mid­dle East ac­counts for $20.3 bil­lion and North Africa $10.7 bil­lion. The in­creas­ingly gen­tri­fied pop­u­la­tions in Sub­Sa­ha­ran African coun­tries and the de­vel­op­ment of so­phis­ti­cated uni­ver­sal health­care sys­tems in the Mid­dle East are pro­vid­ing ro­bust growth op­por­tu­ni­ties.

In par­tic­u­lar, the fin­ished dosage for­mu­la­tion sec­tor is ex­pand­ing par­tic­u­larly quickly in the Mid­dle East, with a num­ber of plants be­ing com­mis­sioned in the last few years. In the UAE, the gov­ern­ment also fast­tracks ap­proval of lo­cally man­u­fac­tured drugs, which is help­ing to es­tab­lish a new man­u­fac­tur­ing base in the coun­try – with the added po­ten­tial for ex­ports to the Gulf Co­op­er­a­tion Coun­cil.

Com­ment­ing on the re­gion’s generic sec­tor Cara Turner, Brand Direc­tor – CPhI Mid­dle East & Africa, UBM, added, “Many com­pa­nies are re­ceiv­ing a di­rect boost from gov­ern­ment pol­icy changes and are build­ing new man­u­fac­tur­ing fa­cil­i­ties in the re­gion, which is see­ing the sec­tor per­form strongly. Do­mes­tic pro­duc­tion ac­counts for ap­prox­i­mately 45% of drug con­sump­tion in the Mid­dle East, with gener­ics in the GCC alone val­ued at $1.55 bil­lion in 2016.”

Saudi Ara­bia re­mains the big­gest pharma mar­ket in the re­gion ac­cord­ing to 2017 sales num­bers at $7.5bn, with Turkey ($6.9bn), Egypt ($3.4bn) and the UAE ($3.17bn) fol­low­ing closely be­hind. How­ever, over­all the North Africa re­gion is pre­dicted to see the fastest growth rates in the next few years at 7.6% CAGR.

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