Qatar – Pharmaceutical market set for 12% growth to 2015

January 28, 2013 3:38 pm0 commentsViews: 72

Qatar’s pharmaceutical market is forecast to become a billion dollar industry in 2019, according to a new report by Business Monitor International.

The sector was valued at QR1.43bn ($392m) in 2010 but is expected to see compound annual growth rate (CAGR) of 12.6 percent to reach $709m by 2015, BMI said.

“Our longer range forecast is for Qatar to become a billion dollar pharmaceutical market for the first time in 2019 and reach QR3.99bn ($1.10bn) at the end of our forecast period in 2020,” the report said.

BMI analysts said the growth will be driven by expansion of the wider economy, for which growth in real terms is expected to remain above five percent a year over the next 10 years.

“Qatar’s size means that it will remain reliant on pharmaceutical imports and as such, the government has been moving to improve the functioning of this market,” the report added.

In February, the Qatar Advisory Council approved legislation proposed by the Supreme Council of Health that allows for the deregulation of pharmaceutical imports to encourage free market competition.

“It is intended that this will reduce prices and increase the availability of certain drugs via the abolition of government controls over the pricing of medicines and an ending of the monopoly that a small number of importing agents have held in the emirate,” BMI said.

It added that it believed Qatar was a favourable proposition for drug makers but the small overall market would continue to deter anything more than a sales and

marketing presence from the large multinationals, which run the majority of their operations from the region’s larger economies such as the UAE.

The GCC currently imports 90 percent of its pharmaceutical needs and local manufacturers need to step up to the challenge, Abdulaziz Bin Hamad Al-Aqeel, the Secretary General of the Doha-based Gulf Organisation for Industrial Consulting (GOIC) said last month.

He warned GCC states against continuing importing such a high percentage of medicines.

In a speech to pharmaceutical industry delegates, he said there were “significant opportunities” for local medicine manufacturers.

He said the pharmaceutical market in GCC countries and Yemen exceeded $6bn and is expected to reach around $10bn by 2020.

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