Sales of pharmaceutical products in the Kingdom are poised to exceed $7 billion (SR26.25 billion) by 2018, compared to sales of 2013, which valued SR4.4 billion, according to a financial report.

The pharmaceutical market in the Kingdom has registered significant growth over years driven by various factors such as increasing of aging population, demographic changes, rise in diseases related to new lifestyle, growing spending of Saudis, and government initiatives to promote local pharmaceutical firms, Al-Eqtisadiah daily said quoting a study by Research and Markets.

Despite the progress, the pharmaceutical sector in the Kingdom is still in an emerging phase owing to many challenges, which need to be resolved. The Saudi pharmaceuticals market has accounted for more than 50 percent of all pharmaceutical products sales in the GCC (Gulf Cooperation Council) region, the report said.

Earlier, officials of Saudi pharmaceutical products said they were expecting a record growth by the end of the current year at 23 percent compared to figures of previous years, which stood at 13 percent, the daily said.

The pharmaceutical market is currently estimated at $2.5 billion (SR9.37 billion). A sizable number of new local drug companies plan to enter the market, notably as many foreign firms seek to set up drug plants in the Kingdom coupled with the expansion plans of the operating companies, the daily said.

The Kingdom relies heavily on imports of pharmaceutical products from Europe to meet local demand as a result of insufficient domestic drug production and lack of research capabilities of the local drug firms, the report added.

Saudi Arabia is expected to emerge as one of the fastest growing markets in the future. The country is one of the most developed and technologically advanced medical sectors in the GCC region with modern equipment and amenities, the report said.

Meanwhile, a drug factory owner said the pharmaceutical market is estimated at $5 billion, including both the government and private sectors. The source, who asked for anonymity, said the number of drug factories in the Kingdom stands at 10 but, however, it is difficult to increase their number because of difficult conditions imposed by the Food and Drug Agency (FDA) and the Ministry of Health.