Investors eye opportunities in the Middle East’s growing pharma sector
The pharmaceutical industry in the Middle East is experiencing robust growth, with analysis from LOGIC Consulting highlighting significant investment opportunities and incentives – particularly for investors capable of navigating the region’s diverse pricing structures and regulatory frameworks.
Pharmaceuticals in the Middle East and Africa (MEA) have been on a strong growth trajectory in recent years, with the overall market valued at around $35 billion in 2024, according to the analysis by LOGIC Consulting. Part of that success has been thanks to significant investment in capacity and localization.
Policy reforms have also played a central role in the growth of MEA pharmaceuticals. For example, last year the Emirati government put into place a new law on medical products that, in part, aims to solidify the UAE’s position as a global hub for pharmaceuticals and other medical products.
Saudi Arabia, in a similar fashion, has been pushing for more localization in pharmaceutical and medical equipment industries within the scope of the Kingdom’s ambitious Vision 2030 roadmap. The Saudi government reportedly earmarked $57 billion in their 2024 budget for health and social development.
The size of the pharmaceutical market in the UAE, according to LOGIC Consulting, is $4.6 billion, while Saudi Arabia’s is valued significantly higher at $13.2 billion. Both countries have enjoyed double-digit growth in recent years. Egypt, for their part, boasts a $4.4 billion market.
Drivers of demand
One of the most significant drivers of demand in the MEA region is an aging population, with individuals over the age of 60 projected to make up nearly 10% of the local population by 2030. An older population, of course, means a greater need for pharmaceutical products and medical equipment.
There is also the fact that the MEA has a slightly higher prevalence of chronic diseases than other regions. For example, the region has a higher prevalence of diabetes, with 85 million suffering from the illness in 2024. That figure is expected to grow by 92% by 2050, which is certain to dramatically increase demand for chronic and specialty therapies.
Luckily, a variety of solutions to the growing health demand have begun springing up. For example, the telehealth market in MEA, valued at $4.5 billion in 2024, is expected to grow at 26.8% CAGR up to 2030. That growth is driven by more smartphone connectivity among MEA populations and state-backed data platforms.
Investment opportunities
There are many attractive near-term investment opportunities in the MEA market for pharmaceuticals. The analysis points specifically to pharmaceutical localization and digital heath scale-ups.
The reality is that across the Middle East and Africa, there are various different policy landscapes, which can be a challenge to foreign investors. But the foundational elements – like incentives and expedited regulatory pathways – are broadly similar.
Some of the incentives, for example, include generous tax exemption schemes, discounted electricity and gas tariffs (in the case of the UAE), and a Golden License that grants easy approval for set-up, operations, and management (in the case of Egypt).
“The Middle East and Africa pharmaceutical market is a central hub for global health investment,” said Heba El Enna, partner and pharma industry head at LOGIC Consulting.
“Its transformation is a strategic, geopolitical imperative driven by national visions for health sovereignty and economic diversification. The market dynamics are shifting towards a more sophisticated model based on technology transfer, local content, and strategic collaboration. Value in MEA will accrue fastest to investors who pair focused theses with country-specific execution.”
