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The Outlook for Pharmaceuticals in the Middle East and North Africa
Date:11/15/2011

rms, the population in these five MENA markets is still young and is expected to reach 246.2 million in 2016, headed by Egypt and Turkey. Nevertheless, there is a sizeable elderly population that will increase demand for healthcare services.

Healthcare development towards privatization

The population has different levels of expectations in each national healthcare system. The healthcare system in Egypt, for instance, is in a transitory phase, characterised by progress towards privatisation. While access to free healthcare exists, private services are appearing as a result of the decline in the standard of public sector care. There is a need for considerable investment in order to continue the modernisation of programmes and maintain the existing facilities. There are two main areas of reform: primary healthcare and the provision of a national health insurance scheme. In Morocco, the health insurance system is in a transitional phase. Overall, opportunities exist, particularly in Turkey and Egypt, as combined health expenditure in these five markets is projected at US$153.2 billion in 2016.

Increasing pharmaceutical demand

International companies recognise the value and potential of these five MENA pharmaceutical markets. Sanofi, for instance, is the largest pharmaceutical operation in Morocco, whilst GlaxoSmithKline is the leader in Saudi Arabia. Some local producers, such as Hikma from Jordan and SPIMACO from Saudi Arabia, aim to become regional leaders. The projected CAGR for the region is very attractive compared to mature markets or other emerging markets. In fact, pharmaceutical sales in these five MENA markets are expected to amount to a combined value of US$35.8 billion at retail prices in 2016, including pharmacy and hospital sales. The region is headed by Turkey, followed by Egypt and Saudi Arabia. Local manufacturing production is fragmented and geared towards branded generics, but reliance on imports remains. Bi
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