Saudi Arabia Generic Drug Market: Healthcare Expansion, Cost-Effective Therapies & Growth Outlook

According to IMARC Group's latest research publication, Saudi Arabia generic drug market size reached USD 4.1 Billion in 2025. The market is projected to reach USD 8.1 Billion by 2034, exhibiting a growth rate (CAGR) of 7.88% during 2026-2034.

How Vision 2030 is Revolutionizing Saudi Arabia's Generic Drug Industry

Saudi Arabia's Vision 2030 initiative has become a catalyst for the generic drug market, transforming how affordable medicines reach millions of citizens. The ambitious national plan focuses on reducing reliance on imported pharmaceuticals while building a robust local manufacturing ecosystem that can meet growing healthcare demands. The Kingdom aims to increase domestic pharmaceutical production from the current 36% to at least 40% of total consumption, creating opportunities for both local and international pharmaceutical companies to invest in state-of-the-art production facilities. Major infrastructure projects under Vision 2030 have boosted healthcare spending significantly, with the Ministry of Health achieving notable milestones in 2025, including reducing average hospital stay durations and saving over 13,000 hospital beds through efficiency improvements.

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Saudi Arabia Generic Drug Market Trends & Drivers:

Saudi Arabia Generic Drug Market Market Growth Drivers:

The Saudi generic drug sector is experiencing remarkable growth driven by government-led cost containment initiatives and regulatory reforms. The Saudi Food and Drug Authority has streamlined approval timelines, reducing generic drug approval periods to just 109 days as of 2021, while implementing patent-handling procedures that clarify pathways for generic manufacturers. Insurance companies are actively promoting generics to manage rising claims expenses, with new benefit tables mandating prescriptions focus on active pharmaceutical ingredients rather than brand names. Public Investment Fund's establishment of Lifera, a commercial-scale contract development and manufacturing organization in June 2025, demonstrates the Kingdom's commitment to boosting local biopharmaceutical capacity and national resilience. Local manufacturers like Tabuk Pharmaceuticals command 30% of the generic market share, while companies such as SPIMACO hold 35% revenue share, showcasing the strength of domestic production capabilities.

Saudi Arabia Generic Drug Market Market Trends:

Digital transformation is reshaping how Saudi consumers access generic medications, with e-pharmacies gaining substantial traction in urban centers like Riyadh and Jeddah. The COVID-19 pandemic accelerated adoption of online platforms that enable price comparisons and prescription-based ordering, particularly among the Kingdom's young, digitally-savvy population with high mobile internet penetration. Specialty generics are emerging as a high-growth segment, targeting complex treatments for oncology, autoimmune diseases, and rare disorders as Saudi Arabia seeks to reduce dependence on expensive imported biologics. The oral dosage form segment maintains market dominance due to patient compliance advantages and well-established manufacturing infrastructure, while respiratory generics are expanding rapidly to address conditions like asthma and COPD, which are prevalent due to environmental factors. The government's generic drug conference scheduled for December 2025 under the theme of empowering local pharmaceutical manufacturing signals continued policy support for sector development.

Saudi Arabia Generic Drug Market Industry Segmentation:

The report has segmented the market into the following categories:

Therapy Area Insights:

• Central Nervous System
• Cardiovascular
• Dermatology
• Genitourinary/Hormonal
• Respiratory
• Rheumatology
• Diabetes
• Oncology
• Others

Drug Delivery Insights:

• Oral
• Injectables
• Dermal/Topical
• Inhalers

Distribution Channel Insights:

• Retail Pharmacies
• Hospital Pharmacies

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Generic Drug Market

• February 2025: Bio-Thera Solutions partnered with Tabuk Pharmaceutical Manufacturing Company for exclusive manufacturing, distribution, and marketing rights of BAT2206, a biosimilar to Stelara (ustekinumab), in Saudi Arabia. This collaboration strengthens the availability of affordable biosimilar treatments in the Kingdom while supporting local pharmaceutical manufacturing capabilities under Vision 2030 objectives.
• March 2025: Apex Pharma, a leading Egyptian pharmaceutical company, commenced operations at its first manufacturing facility in King Abdullah Economic City. Chairman Magdy Elba announced plans to produce between 10 and 14 pharmaceutical products this year, with distribution scheduled to begin following the Hajj season, expanding generic drug availability across the Kingdom.
• June 2025: Saudi Arabia's Public Investment Fund established Lifera, a commercial-scale contract development and manufacturing organization (CDMO), to strengthen the local biopharmaceutical industry. This initiative aims to boost national drug security, enhance healthcare system resilience, and position Saudi Arabia as a leading pharmaceutical manufacturing hub in the region.
• August 2025: Agios Pharmaceuticals announced that the Saudi Food and Drug Authority approved PYRUKYND (mitapivat) for treating non-transfusion-dependent and transfusion-dependent alpha- or beta-thalassemia in adults. This approval expands treatment options for patients with rare blood disorders in the Kingdom.
• December 2025: The Saudi Food and Drug Authority announced the Generic Drugs Conference 2025 scheduled for December 30 in Riyadh, titled "Empowering Local Pharmaceutical Manufacturing: The Future of Generic Drugs in Saudi Arabia." The conference brings together healthcare providers, regulatory experts, academics, investors, and major pharmaceutical companies to strengthen the generic drug sector through collaborative dialogue and best practice sharing.

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