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Paper Example on Localization of Pharmaceutical Products in Saudi Arabia

3 pages
703 words
University of California, Santa Barbara
Type of paper: 
Literature review
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Today, in Saudi Arabia, approximately 75-80% of the total pharmaceutical products are imported ( 2017). Besides, despite the fact that the remaining percentage of pharmaceuticals are produced locally, they do not enhance pharmaceutical security in the country, and they also do not meet the countrys growing medications demand (Khan, Emeka, Suleiman, Alnutafy, & Aljadhey, 2015). For this reason, Saudi Arabia is building a pharmaceutical manufacturing complex and the country, therefore, envisions producing advanced pharmaceuticals and specialty locally.

Possible Difficulties

Some of the major difficulties affecting Saudi Pharmaceutical Companies manufacturing all Pharmaceutical Products is the Kingdoms growing population as well as the increase in per capita spending on the propensity to purchase expensive patented products (Modon, 2011). The increase in the pharmaceutical product spending in Saudi Arabia can also be traced to the great burden of respiratory diseases, cancer, diabetes and hypertension among many others.

The primary objectives of the pharmaceutical products localization in Saudi Arabia are such as;


i. To localize the pharmaceutical technologies, not just import medication.

ii. To transfer the pharmaceutical production knowledge to coming generations

iii. To establish a competitive pharmaceutical hub that is led by trained local pharmacists in Saudi Arabia (, 2017).


Today in Saudi Arabia, pharmaceutical imports account for more than 92% of the market. In 2016, Saudis expenditure was valued to be around $6.9 billion, substantiating a 10% annual growth rate (Wise, Dombi & Javis, 2016). Besides, Saudi Arabia accounts for an average of 59.4% of the total pharmaceutical products purchases in the Gulf region (SAP, 2015).


So as to achieve the said objectives, Saudi Arabia needs to encourage and also attract both foreign and domestic investments. Besides, the pharmaceutical industry ought to train human resources from Saudi. This will serve as a crucial foundation for the localization of the industry (SFDA, 2018).


Alhawassi, T. M., Abuelizz, H. A., Almetwazi, M., Mahmoud, M. A., Alghamdi, A., Alruthia, Y. S., Pitts, P. J. (2018). Advancing pharmaceuticals and patient safety in Saudi Arabia: A 2030 vision initiative. Saudi Pharmaceutical Journal, 26(1), 71-74. doi:10.1016/j.jsps.2017.10.011

AMEinfo. (2014, September 10). Global Research Based Pharmaceutical Companies invest in Saudi localization projects. Retrieved from

ATKearney. (2017). Read @ATKearney: Localization: An Emerging Requirement of a Global Pharma Strategy. Retrieved from (2017, November 28). Saudi Arabia Statistics. Retrieved from (2017, July 18). Saudi Arabia Pharmaceuticals Retrieved from

Khan, T. M., Emeka, P., Suleiman, A. K., Alnutafy, F. S., & Aljadhey, H. (2015). Pharmaceutical Pricing Policies and Procedures in Saudi Arabia. Therapeutic Innovation & Regulatory Science, 50(2), 236-240. doi:10.1177/2168479015609648

Modon. (2011, April 27). Localization of the Pharmaceutical Industry. Retrieved from

Nguyen, Q. (2017). New business paradigm and localization in pharmaceutical business Wordbee. Retrieved from

Pateriya, S., Janodia, M., Deshpande, P., Ligade, V., Talole, K., Kulshrestha, T., Udupa, N. (2011). Regulatory Aspects of Pharmaceuticals Exports in Gulf Cooperation Council Countries. Journal of Young Pharmacists, 3(2), 155-162. Retrieved from

Pharmaceutical Executive Editors. (2017, October 16). Saudi Arabia Pharma Market Set to Hit $6 Billion by 2020. Retrieved from

Populi, V. (2017, October 11). Your Neighborhood Pharmacy. Retrieved from

SAP. (2015). Sipchem: Optimizing HR with SAP ERP HCM, Localized for the Kingdom of Saudi Arabia. Retrieved from

SFDA. (2018). SFDA. Retrieved from

WHO. (2012). Saudi Arabia Pharmaceutical Country Profile. Retrieved from

Wise, M., Dombi, J., & Javis, C. (2016, October). Localization An Emerging Requirement of a Global Pharma Strategy - Health Article - A.T. Kearney | Southeast Asia - A.T. Kearney. Retrieved from

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