The Investment Promotion Agency of Qatar revealed that the pharmaceutical industry in Qatar is expected to witness remarkable growth in the coming years, driven by the expansion of the middle class and the rising rate of aging among the world’s population. This sector provides lucrative opportunities for investors and stakeholders around the world due to expectations that the pharmaceutical market will grow by 165.2% between 2020 and 2030.
The pharmaceutical industry has boomed in the post-COVID-19 era, evident in the record number of vital drug deals and significant investments in healthcare systems. This trend has gained attention in the Middle East region, especially in the GCC countries, where the pharmaceutical industry represents a new stage for it.
Globally, the pharmaceutical market is on an upward trajectory, according to a recent sectoral study conducted by the Investment Promotion Agency in Qatar, as 2020 witnessed a significant jump in the number of vital medicines, with a significant increase of 107%, compared to 2018, and spending on research also recorded And development has increased significantly, reaching $189 billion in 2020.
The main parameters of the pharmaceutical market in the Middle East
* Increase of the middle class: It is expected that the number of people belonging to the middle class in the world will reach 5.3 billion people by 2030.
Generic Market Growth: The generic market was $390.6 billion in 2020 and is expected to reach $574.6 billion by 2030.
Rising drug prices: The price of prescription drugs has increased by 35% since 2014.
Personalized medicine growth: The personal medicine market is expected to reach $796.8 billion by 2028, with a compound annual growth rate of 6.2% until 2028.
In the midst of this scene, the State of Qatar stands out as an attractive destination for foreign investors in this sector, due to the competitive business climate it provides, comprehensive medical infrastructure, and large investments in research and development. And as an embodiment of its commitment to providing world-class services, the State of Qatar leads healthcare spending in the GCC with $1,827.
Pharmaceutical scene
After the covid-19 pandemic
The Covid-19 pandemic posed great challenges for health care systems in the world, including the pharmaceutical industry. However, the State of Qatar showed great flexibility and remarkable ability to deal with the pandemic and to adapt to the circumstances of the world’s gradual exit from this unprecedented crisis. Despite the ongoing effects of the pandemic, well-established support systems continue to operate in Qatar, attracting investments in the pharmaceutical industry and driving progress in this industry.
The National Health Strategy 2018-2022 is one of the main factors for Qatar’s success in this field, as it has created an exceptionally favorable environment for pharmaceutical companies. This strategy focuses on developing health care services and encouraging the involvement of the private sector in providing them, supported by the government’s commitment to a continuous increase in health spending and spending on private health care services. Moreover, smooth distribution networks and easy access to healthcare services have increased market demand and ensured the availability of essential medicines. Institutions such as the College of Pharmacy at Qatar University, and initiatives such as the Biomedical Research Training Program, contribute significantly to supporting the country’s scientific and research capabilities, which promotes innovation in the pharmaceutical sector. In addition, prestigious educational institutions, including Weill Cornell Medicine-Qatar, are working to promote health and drug research, which establishes Qatar’s position in this industry.
Qatar is expected to maintain its strong position in the global pharmaceutical industry as the world moves into the post-pandemic era. Thanks to its readiness to deal with changes, its infrastructure, and its supportive knowledge expertise, Qatar is ranked among the top three countries in the Middle East and North Africa region, in terms of its health facilities, and will continue to move forward in making its significant contributions in the field of healthcare.
