The pharmaceutical industry is poised for remarkable growth in the coming years, driven by an expanding middle class and ageing global population. With the pharma market set to increase by 165.2% between 2020 and 2030, the sector presents lucrative opportunities for investors and stakeholders worldwide.
The post-pandemic era has further propelled the industry, leading to a record number of biopharmaceutical deals and significant investments in healthcare systems. This trend has also garnered attention in the Middle East, particularly in the GCC, where a new pharma industry frontier is emerging.
Globally, the pharma market is on an upward trajectory, according to a recent sectoral study by the Investment Promotion Agency Qatar (IPA Qatar). Biopharma deals soared to new heights in 2020, with a remarkable increase of 107% compared to 2018. R&D spending equally saw substantial growth, reaching $189 billion in 2020.
This projected growth is indicative of the industry’s steady expansion in the aftermath of the pandemic and substantial investments in global healthcare systems.
By 2025, the market is estimated to reach $2,051 billion, a 70% increase from 2020. Similarly, drug sales are expected to rise by 32% from 2020 to reach $1,181 billion by 2024.
The Middle East is quickly becoming a key driver of this anticipated growth. The region benefits from improved medicine accessibility and a robust economic development outlook, making it an attractive market for pharmaceutical investments.
With nations actively focusing on boosting healthcare and easy access to personalised digital services, the GCC countries are experiencing a surge in their $9 billion consumer health market.
There are several key demand drivers for the pharmaceutical industry: an ageing population, a rise in chronic diseases, stress-related illnesses, and pandemics are all contributing factors.
Simultaneously, supply side drivers such as speciality medicine, patent expiry, generic drugs and over-the-counter medications present additional opportunities for growth within the sector.
Within this context, Qatar stands out as an attractive destination for foreign investors in the industry.
The country offers a competitive business climate, extensive medical infrastructure and significant R&D investments. In line with its commitment towards world-class healthcare services, Qatar’s healthcare expenditure per capita is the highest in the GCC at $1,827.
Post-Pandemic Pharmaceutical Landscape The COVID-19 pandemic presented significant challenges to the global healthcare system, including the pharmaceutical industry.
However, Qatar has demonstrated remarkable resilience and adaptability as the world gradually emerged from this unprecedented crisis. Despite the lingering effects of the pandemic, Qatar’s robust support systems continue to thrive, attracting pharmaceutical investments and driving progress in the industry.
One key factor of its success is the Qatar National Health Strategy 2018-2022, which has created an exceptionally favourable environment for pharmaceutical companies.
This strategy focuses on developing healthcare services and encouraging private sector participation, bolstered by the government’s commitment to consistent growth in health expenditure and private healthcare spending.
Moreover, simplified distribution networks and improved access to healthcare services have heightened the market’s appeal, ensuring the availability of essential medications.
Institutions such as Qatar University’s College of Pharmacy and initiatives like the Biomedical Research Training Programme (BRTP) contribute significantly to the nation’s scientific and research capabilities, fostering innovation in the pharmaceutical sector.
Additionally, prestigious organisations like Weill Cornell Medicine-Qatar actively advance healthcare and pharmaceutical research, further enhancing Qatar’s standing in the industry.
Looking ahead, Qatar’s position in the global pharmaceutical industry remains strong as the world moves beyond the pandemic.
With its readiness to adapt, along with its supportive infrastructure and expertise, Qatar is ranked in the top three in the MENA region for health infrastructure and will continue to make significant contributions in the healthcare space.
— Invest Qatar