Saudi Arabia’s oil-fueled prosperity, growing population and liberal health spending policies are major drivers of market growth and has generated opportunities for multinational pharmaceutical companies, said a report.

The US-based research and advisory firm Decision Resources' report found that an expanding network of medical facilities and the requirement for mandatory health insurance have fueled market expansion.

The Saudi Arabia Market Access Tracker stated that the Saudi government is equally committed to the strict regulation of both the private and public sectors in order to provide health benefits at an optimal cost.

Despite ample market opportunities for multinationals, strict registration, pricing, and drug distribution policies present challenges to market entry, it said.

The findings also revealed that a major attraction for multinationals is that the domestic pharmaceutical industry has not kept pace with the needs of the Saudi market, which is highly dependent on imported drugs, both brands and generics.

However, government policies to promote the domestic industry as well as continuing cost-containment activities will pose barriers to multinationals interested in this important Middle East market, said the statement.

"Unified drug registration, pricing, and procurement policies among the member states are steadily moulding the GCC region into a harmonised common market, as opposed to the individual markets of the past," said analyst Gilan Megeed.

"Many Saudi regulations and guidelines are modelled after those in the European Union, the World Health Organization, and the International Conference on Harmonization. The GCC common market clearly seeks to emulate the success of the EU common market," said Megeed. - TradeArabia News Service