Saudi Arabia: A Growing Economy
A promising land for Pharmaceutical market.
While most of the developed world is facing economic uncertainty, Saudi Arabia’s economy
has been flourishing driven by ambitious economic diversification initiatives. Saudi Arabia is the world’s twentieth largest economy, a ranking built upon its position as the biggest producer and exporter of crude oil and natural gas, with about 17 percent of the proven global oil reserves.
The government continues to pursue economic reform and diversification and promote foreign investment in the kingdom, a strategy that has stepped up significantly since Saudi Arabia’s accession to the World Trade Organisation (WTO) in 2005. the country’s GDP has steadily grown over recent years, recording high single-digit growth rates and resulting in USD 646.49 bn in 2016 (According to the latest census of 2016, World Bank). The robust growth of Saudi Arabia’s economy has been coupled with a rapidly growing population fueled by a strong influx of expatriates. With a population growth rate exceeding 2% p.a.,
Saudi Arabia’s healthcare budget as a percentage of its GDP has increased from 3.2% to 4.3% over the period. This growth was also supported by several key demand determinants including rising wealth levels, increased private consumption of medicines, improved longevity and a growing number of chronic and lifestyle-related diseases, increasing aging population mostly in the above 60 years bracket. Saudi Arabia’s population stands at 29 million-the largest country in the Gulf region with Per capita health care spending is over USD 901.