Economic liberalisation will drive Middle East pharma market size to more than USD12bn by 2010, says a report from URCH Publishing

The region is a high-growth market, mostly import-oriented, and has already achieved an impressive 10.6% combined annual growth rate (CAGR) between 1999 and 2003, around 4% more than the estimated world average and second only to South East Asia and China.

The liberalisation policies pursued by the governments or pushed through bilateral agreements with the US or the EU are key to the region’s future potential. Israel has already liberalised its over-the-counter (OTC) sector, while the implementation of cooperative health insurance in Saudi Arabia is forecast to increase the Kingdom’s private health market from $1.06bn to $3.46bn over the next 2-3 years, ahead of Egypt and the United Arab Emirates.

“However, multinationals must be wary of the inadequate level of intellectual property rights protection in the region”, warns Jean-Michel Saliba, the report’s author. “US-based pharmaceutical industry association, PhRMA, has estimated that the combined annual loss to its members in the Middle East due to lack of patent protection amounted to $555m”, added Mr Saliba. “Nevertheless, pharmaceutical companies that invest wisely in this market and understand its dynamics will find it is possible to operate in the region without adverse developments necessarily having a profound impact on activities”, he said.

The 100 page report provides necessary information for pharmaceutical companies to operate in the Middle East region. Country coverage includes:

- Egypt, the largest pharmaceutical market of the region

- Israel, home to the world’s largest generic drug company

- Jordan, the leading Arab pharmaceutical exporter

- Lebanon, an almost exclusive import market

- Saudi Arabia, the largest market of the Gulf

- The United Arab Emirates, among the highest-priced markets in the region