Pharmaceuticals Import Summary Report. selected countries in MENA region

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1 Pharmaceuticals Import Summary Report selected countries in MENA region

2 Contents Disclaimer Global Imports. Imports in MENA Focus Pharmaceutical Categries Vaccines Medical instruments Established Export Destinations Egypt Algeria Jordan Potential Export Destinations Oman Bahrain Other Selected MENA countries United Arab Emirates Qatar Appendix Disclaimer The Industry Import Summary Report has been prepared by Saudi Export Development Authority SAUDI EXPORTS as a part of its continuous publication on industries. The purpose of this study is to provide a highlevel view of the Kingdom s export to countries based on available public information. Its analysis, perception and anticipation are subject to personal judgment. Saudi Exports is not liable for any consequences caused by the understanding and interpretation of any part of this report. This report based on the data reported by the countries list in the appendix.

3 SUMMARY Aging population, chronic/ lifestyle diseases, emerging market expansion, and technological advances have good impact on pharmaceuticals growth. However, Pharmaceuticals growth in MENA didn t show great resilience to the economic and global trade slowdown in 05, despite the faster growth rate in this sector for the period (0-05) compared to the global average. MENA region is characterized by high per-capita income, favorable demographic trends and huge government healthcare spending- providing a favorable basis for growth of pharmaceutical sector. Over the last five years, the Kingdom has witnessed high demand of its pharmaceutical products in MENA region. While pharmaceuticals export from the Kingdom have demand in countries such as UAE, Egypt, Algeria, and Qatar. There remain markets like Jordan, Oman and Bahrain which have excellent growth potential. For comments and queries please contact: Muataz Alsafi Director General, Export Intelligence This report looks into the total imports of pharmaceutical in selected countries of MENA region vis-a -vis the Kingdom s share in its imports. It also outlines countries having potential to become lucrative markets in near future for pharmaceutical products such as Pharmaceutical drug (referred as drug), Medical instruments and Vaccines. Saudi Exporters are encouraged to carry their own in-depth analysis for better insights into import potential of any of these product categories.e in the imports. It also outlines the import potentials in building material product categories such as Bars & Rods, Metal Sheets, Electric Wires & Fittings, Pipes & Tubes and Glass & Ceramics. Saudi Exporters are encouraged to carry out in-depth analysis for better insight into import potential of any of these product categories. Saudi Exports Saudi Export Development Authority Telephone: Kingdom of Saudi Arabia P.O. Box 7569, Riyadh

4 . Global Imports Life science sectors like pharmaceuticals, biotechnology and medical technology segment growth is highly correlated with the countries general economic strength and its health care spending levels. Aging population, chronic/ lifestyle diseases, generic medicines flooding the markets and recent advances in medical technology have good impact on the industry s growth. However, its growth didn t show great resilience to the economic and global trade slowdown in 05. The major product categories of the industry are s, Vaccines and Medical instruments. Figure shows global import of pharmaceuticals from 0 to 05., , %, ,39, ,9,9,9,,5 Europe *includes Sub-Saharan Africa, Australia & Oceania, and South America Figure : Global import of pharmaceutical products The figure shows pharmaceuticals import of the world from 0-5. The world imports increased by % per year from 0 and stood at.3 trillion SAR in 05. Western world comprising of Europe and North American countries were the largest importers of pharmaceuticals having a share of 50% and % respectively in 05 global pharmaceuticals imports. However Asia was the fastest growing market with a CAGR of 6% in Imports in MENA North America Asia MENA Others* MENA region has been a net importer of pharmaceuticals. Export of pharmaceuticals constitute % of total trade in MENA region, which gives a good chance for local pharmaceuticals and new firms to expand. Although MENA region s average import growth rate has been more than that of the world, it is expected to be the highest growing region in the coming years Figure : MENA region s trade balance in pharmaceuticals MENA Import MENA Export Trade Balance Figure shows MENA region has been a net importer of pharmaceuticals in the past five years. MENA region s import of pharmaceuticals have been increasing gradually since 0 but witnessed a decline in 05. Thereby leading to CAGR of in the last five years as shown in figure 3. Over this period, imports of all ROME sub region has declined however that of GCC and North Africa have increased. GCC was the largest importer of pharmaceutical products having a share of 37% in the total imports of 05. Table in Appendix lists the selected countries in MENA Region Deloitte 05 Global life sciences outlook: Adapting in an era of transformation

5 Exploring 05 imports into product categories % % 79 bn SAR 70% 70% Medical Instrumen % Vaccines %Others ROME GCC North Africa Figure 3: Region wise distribution of building material imports in MENA Figure 3 also shows the distribution of pharmaceutical imports into the following major categories, Medical instruments, Vaccines and others. In 05, accounted for 70% of the total imports in MENA region. Medical instruments and Vaccines had a share of and % respectively in the total imports of the region. 5 % Medical Instruments Vaccines Others* Figure : Product wise distribution of pharmaceutical imports in MENA The figure shows the pharmaceuticals import of MENA region by product categories. Among the major product categories, imports of was 70% of the total imports in 05 which has been increasing by % annually from 0 to 05. However imports of Vaccines products category and Medical Instruments to the MENA region have increased % in this period for each. Emergence of local manufacturers have made some countries less reliant on imports and have also transformed them ure shows the product distribution of pharmaceuticals imports in MENA region. In the last five years has been the largest imported product by market value and it is witnessing a decline of 0% in 05 compared to the previous year and the average growth in the whole period (0-05) is %. 3 UN Comtrade UN Comtrade 5

6 Figure 5 displays the imports of pharmaceuticals from the Kingdom to the MENA region. In 05, imports from KSA accounted for a total of 69 million SAR % Medical Instruments Vaccines Others* Figure 5: Imports of pharmaceuticals from KSA to the MENA region The figure shows the exports of pharmaceuticals from KSA to the MENA region. Exports of pharmaceuticals products have increased by a CAGR of 3% from 0 to 05. contributed more than 9 of total MENA imports which stood at 69 million riyal. The increase in KSA pharmaceuticals export could be attributed to emergence of strong local manufacturers. 3. Focus Pharmaceutical Categories 3. includes Medicament mixtures, Antibiotics, Hormones and their derivatives etc. Figure 6 shows sub-region wise distribution of imports of MENA. It also shows the distribution of countries exporting to MENA region in % ROME GCC North Africa Exploring 05 imports into product categories 0% % 55 bn SAR 6% % % 3% 9% % Germany 3% France 9% U.S.A % Switzerland 6% United Kingdom Italy % KSA 0% Others Figure 6: Global imports in MENA Between 0 and 05, imports of drug witnessed an increase of % CAGR. Imports of GCC and North Africa countries have been increasing % and % respectively in last 5 years and together they contribute about 73% of the region s import in 05. While ROME countries, have declined about % CAGR in the same period. Most of the major supplying countries were European, with Germany leading the list with a share of % in the total imports. With the European manufacturers dominating the global arena, it comes as a little surprise to see them dominating MENA region. 6

7 Figure 7 shows the imports of from KSA to MENA % GCC North Africa ROME Figure 7: Imports of from KSA to MENA The figure highlights distribution of MENA regions import from KSA. Between 0 and 05, imports from KSA have witnessed a stunning average annual growth rate of 3%. In the MENA region, the import of KSA products to GCC and North Africa have CAGR of % with North Africa being the top importer of KSA products, importing 70% of KSA exports to MENA. Figure shows major importing countries in the MENA region. An ageing population, increase in lifestyle related chronic disease and highly government subsidized healthcare are some of the leading reason behind the countries import of pharmaceutical. KSA 7 7 Turkey Egypt Algeria Jordan Tunisia Morocco Figure : Major importing countries in MENA Table in Appendix shows the top imported products in sub-category. UN Comtrade 7

8 3. Vaccines Vaccines includes anti-sera, toxins, vaccines, micro-organic cultures etc. Figure 9 shows the region wise distribution of Vaccines import by MENA in the last five years. It also shows the top Vaccines exporting countries for the year 05. % % ROME GCC North Africa 3 3 Exploring 05 imports into product categories >% 33% % 9% bn SAR 3% 9% 0% % Germany 3% U.S.A 0% Switzerland 9% France 9% Belgium % Ireland >% KSA 33% Others Figure 9: Vaccines import in MENA Between 0 and 05, imports of Vaccines grew at CAGR rate of %. In 05, ROME sub region had the major share of 9% followed by GCC and North Africa. Mostly, the sub regions witnessed gradual increase in their vaccines import in the last five years. The growth rate of GCC countries was 6%, North Africa 6% and ROME Countries % in this period. Germany was the major Vaccines supplier to MENA region with a share of %, followed by USA and Switzerland having a share of 3% and 0% respectively in total vaccines import of 05. Dominance of European and American companies in global Vaccine manufacturing is the major reason behind this import trend. Figure 0 shows the imports of Vaccines from KSA to MENA region across GCC, ROME and North Africa. 3% 9 Figure 0: Imports of Vaccines from KSA to MENA 3 GCC ROME North Africa The figure highlights distribution of Vaccines export from KSA to MENA. Between 0 and 05, imports from KSA have witnessed an average annual increase of 3%. GCC countries were the largest importer of KSA s Vaccines in MENA region having more than 7% share in MENA s import for the year 05. ROME and GCC sub regions recorded high annual average growth rate in the last five year 9% and % respectively UN Comtrade UN Comtrade

9 Figure shows major Vaccines importing countries in the MENA region. The top countries are Turkey, KSA, Algeria and Egypt. Turkey 5,9,755 3,96 KSA Algeria,903,6,573,59,55,03 Egypt Morocco Qatar Figure : Major Vaccines importing countries in MENA Table in Appendix shows the top imported products in Vaccines sub category. 3.3 Medical instruments Medical instruments comprises of orthopedic appliance, surgical materials, Mechano-therapy appliances etc. Figure shows region wise distribution of Medical instruments imports to MENA. It also shows the distribution of exporters in the MENA region for the year 05. % Exploring exporters distribution in 05 37% 0.% Bn SAR % 3% 7% 3% U.S.A 7% Germany %China France Switzerlan Ireland 0.% KSA 37% Others ROME GCC North Africa Figure : Medical instruments import in MENA UN Comtrade 3 UN Comtrade UN Comtrade 9

10 Between 0 and 05, imports of Medical instruments registered significant average annual growth rate of %. ROME sub region still the largest importing countries in MENA despite their sluggish growth of % in this period. GCC and North Africa had a remarkable CAGR of Medical instruments imports and % respectively. Here also, American and European countries were the major suppliers with USA supplying more than 3% of the total imports followed by Germany and China having a market share of 7% and % in total MENA imports for the year 05. Figure 3 shows the imports of Medical instruments from KSA to MENA across its sub regions GCC North Africa Figure 3: Imports of Medical instruments from KSA to MENA Figure 3 highlights distribution of Medical instruments from KSA to MENA. Between 0 and 05, imports from KSA have witnessed an average annual growth of. North Africa countries import almost 90% of KSA s export to MENA region, their imports were stable in the last five years and have registered average growth rate of 9%. However KSA s export to GCC countries have witnessed sluggish average annual growth rate of 3% and lost its market in ROME with CAGR of -7% in this period. ROME Figure shows major Medical instruments importing countries in MENA. It includes countries like Turkey, KSA, Egypt and Algeria. Turkey 3,930,73 3,975 KSA 3,37 3,709 3,069 Egypt,7,05 95 Algeria Morocco Qatar Tunisia Jordan UN Comtrade 6 UN Comtrade Figure : Major Medical instruments importing countries in MENA Table in Appendix shows the top imported products in Medical instruments category. 0

11 . Established Export Destinations3.. Egypt Egypt has a GDP of,0 billion with a population of 9.5 million making it the most populous country in the MENA Region. In 05, the total imports of products and services accounted for % of its total GDP. Figure 5 shows the imports of pharmaceuticals from 0 to 05. Imports have grown by 3% in the past five years. 6, , ,0 6,59 3%, ,05 56,05 0, ,7 6,5 7,39, Exploring exporters distribution in 05 % 3% 9% 0 Bn SAR 3% 3 % 3% Germany 3% Switzerlan 9% France U.S.A United Kingdom China 3% KSA % Others Medical instrument Vaccines Others Figure5: Import of pharmaceuticals in Egypt Figure 6 shows the imports of pharmaceutical from KSA to Egypt % Medical instruments North Africa The figure shows the distribution of imports of pharmaceuticals from KSA to Egypt. Between 0 and 05, imports from KSA have increased at CAGR of %. Among product categories, accounted for more than 96% of the total imports in 05. Medical instruments import to Egypt from KSA have also increased gradually every year by %. Figure 6: Imports of pharmaceuticals from KSA to Egypt 7 UN Comtrade UN Comtrade 9 UN Comtrade

12 . Algeria Algeria is the largest country in the MENA region and is well recognized as a regional power. It has a GDP of 66 Billion SAR and a population of Million. World Bank categorizes it as an upper middle income economy. Figure 7 shows the imports of pharmaceuticals in Algeria from 0 to 05. Its total imports have increased by % annually in the last five years its major supplier was France supplying around 30% of its total imports followed by Germany and Switzerland having a share of and respectively in its import for the year 05., , ,07 6,77 7,33 % 9,35 67,03 0, ,55, ,59 7,5,06 6, Exploring exporters distribution in 05 3 % % Bn SAR 5 % 30 % 30% France Germany Switzerlan U.S.A Italy Spain % KSA 3% Others Vaccines Medical instruments Others Figure 7: Imports of pharmaceuticals in Algeria Figure shows the imports of pharmaceuticals from KSA to Algeria. 5 % Medical instruments The figure shows the distribution of pharmaceutical imports of Algeria from KSA. Between 0 and 05, imports from KSA have increased by per year. Among product categories, has been dominating with almost 00% of the total imports value, while Medical instrument had a very negligible share in total imports of last five years. Figure : Imports of pharmaceutical from KSA to Algeria

13 .3 Jordan Jordan has a population of more than 7.6 million and a GDP of 0.6 billion SAR. Machinery, transport equipment, iron and cereals products are among the top products of Jordan s imports. Figure 9 shows the imports of pharmaceuticals in Jordan from 0 to 05. Imports have grown at an average rate of 3% annually in last five years. Among the supplying countries, Germany supplied 3% of the total imports to the country in 05 followed by USA and France supplying % and % of the imports for %,69,657 3%,66,, , , ,733,0, Exploring exporters distribution in 05 0 % 3%.5 Bn SAR 6 % 7 % % % % 3% Germany % U.S.A % France % Switzerlan 7% Italy 6% China 3% KSA 0% Others Medical instruments Vaccines Others Figure 9: Imports of pharmaceuticals in Jordan Figure 0 shows the imports of pharmaceuticals import of Jordan from KSA % Vaccines Medical instruments Figure 0: Imports of pharmaceutical from KSA to Jordan The figure shows the distribution of imports of pharmaceuticals from KSA to Jordan. Between 0 and 05, imports from KSA have increased by % per year. Imports of and Vaccines products categories have increased by 0% and 9% respectively. Medical instruments imports in the last five years have decreased. 3

14 5. Potential Export Destinations 5. Oman Oman has a population of.5 million and a GDP of 6 billion SAR. In 05 Oman s total import stood at 09 billion SAR, around % of its GDP. Figure shows the imports of pharmaceuticals in Oman from 0 to 05. Over the same periods imports of Pharmaceuticals have risen by 3% with the imports of s and Medical instruments increasing by 3% each CAGR. In 05, UAE was the largest supplier with supplying almost a third of the total imports followed by a Switzerland and Germany having a share of 3% and % respectively., , %,6 07,7, ,0,, Exploring exporters distribution in 05 % 3 % 6 % 7 % 7 %,3 mn SAR % 3 % 3 % 3% United Arab Emirates 3% Switzerland % Germany 7% Jordan 7% Netherlands 6% Belgium 3% KSA % Others Vaccines Medical instruments Other* Figure : Imports of pharmaceuticals in Oman Figure shows the imports of pharmaceuticals from KSA to Oman % Vaccines Figure : Imports of pharmaceuticals from KSA to Oman Medical instruments Figure 6 shows distribution of Oman s pharmaceutical imports from KSA in the last five years imports in the last five years. Between 0 and 05, imports from KSA have increased by % annually. Among imported products, remained the largest product with a market share of 93% and grew annually at % in the last five years. During the same period, import of Vaccines increase by % and Medical instruments increase by 30% CAGR. Others*

15 5. Bahrain Bahrain has a population of.3 million and a GDP of billion SAR. In 05 Bahrain imported goods and services worth 6 billion SAR, 50% of its GDP. Figure 3 shows Bahrain s import of pharmaceuticals from 0 to 05. During this period, pharmaceutical imports increased by an average of % per annum. Among the supplying countries, Germany tops the chart with share of the total imports followed by USA and France with 3% and 0% share in total imports for the year 05 respectively % ,06, Exploring exporters distribution in % 5 %,7 mn SAR 5 % 7 % 5 % 3 % 0 % % Germany 3% U.S.A 0% France % Ireland 7% United Kingdom Belgium KSA 37% Others Vaccines Medical instruments Other* Figure 3: Imports of pharmaceutical in Bahrain Figure shows previous five years pharmaceutical imports from KSA to Bahrain % Vaccines Medical instruments Others* Figure : Imports of pharmaceuticals from KSA to Bahrain The figure shows the distribution of Bahrain s pharmaceuticals imports from KSA. From 0 to 05, imports grew at an annual average rate of %. Among product categories, has the highest share in total imports, which has also doubled in the last five years. Imports of vaccines have also risen significantly 70% CAGR in the same period. 5

16 6. Other Selected Countries 6. United Arab Emirates UAE has a national GDP of.39 Trillion SAR in 05 and for the year 0 imports of SAR 99 Bn, KSA contributed % to the total imports of UAE in 0. Figure 5 shows the imports of pharmaceuticals by UAE from 00 to 0. Imports have grown by 30% in past five years. sub-category is the largest contributor to the total imports in 0. All major product categories have witnessed an increase in the period 00-. Among the supplying countries, Germany is the major supplier of pharmaceuticals to UAE. It constituted 7% of the total imports to the country in % Exploring exporters distribution in 0 % 3 % 6 % 6 bn SAR 7 % % 3 % 7% Germany 3% U.S.A % Switzerland 0% France 9% UK 6% Italy % KSA 3% Others % 0 % Medical instruments Vaccine Other* Figure 5: Imports of Pharmaceuticals in United Arab Emirates Figure 6 shows the imports of pharmaceuticals from KSA to UAE. In 0, imports of pharmaceuticals from the Kingdom stood around 300 million SAR in % Medical instruments Figure 6: Imports of pharmaceuticals from KSA to United Arab Emirates The figure shows the distribution of imports of pharmaceuticals from KSA to United Arab Emirates. Between 00 and 0, imports from KSA have decreased by % per year. Among product categories, contributed more than 9 of the total imports from the Kingdom in 0. All the major product categories have witnessed increase in their imports from Kingdom in this period. Vaccines Others* 6

17 6. Qatar Qatar has a population of more than. million people and a GDP of 66 billion SAR. In 05, Qatar has the highest GDP per capita PPP in the world. Figure 7 shows the imports of pharmaceuticals in Qatar from 0 to 05. Imports have grown at an average rate of 0% annually in last four years. Among the supplying countries, USA supplied 7% of the total imports to the country in 05 followed by Germany and UK supplying 3% and % of the imports for %,3,903,73 55, ,,76,3,570 Exploring exporters distribution in 05 3 % %,3 bn SAR 7 % % 3 % 7% U.S.A 3% Germany % United Kingdom % SWITZER LAND 7% FRANCE 6% Italy % KSA 37% Others % 7 % % Medical instruments Vaccines Other* Figure 7: Imports of pharmaceuticals in Qatar Figure shows the imports of pharmaceuticals import of Qatar from KSA. % Vaccines Medical instruments Others* Figure : Imports of pharmaceutical from KSA to Qatar The figure shows the distribution of imports of pharmaceuticals from KSA to Qatar. Between 0 and 05, imports from KSA have increased by % per year. Imports of all the major products categories have increased except Medical instruments which have remained the same in the last five years. 7

18 Appendix Table : Distribution of MENA countries* GCC ROME Landed Costs (SAR/kg) Saudi Arabia Bahrain Kuwait Qatar Sultanate of Oman United Arab Emirates Cyprus Iraq Jordan Lebanon Turkey Yemen Yemen Others Algeria Egypt Libya Morocco Sudan Tunisia Others * It should be noted that in some cases not all countries report trade statistics or do not trade in specific products, therefore, regional coverage could possibly reflect selective countries though not all of them please look at Table. Table : List of countries and their data availability Data Availability Algeria Bahrain Cyprus Egypt Jordan KSA Kuwait Lebanon Libya Morocco Irregularly updated Irregularly updated Irregularly updated Qatar Yemen Sudan Oman Tunisia Turkey UAE Palestine Iraq Irregularly updated Irregularly updated Irregularly updated Irregularly updated Irregularly updated Table 3: Focus Pharmaceuticals Product categories in MENA HS Code Sub category Products MENA pharmaceuticals import in Bn SAR Medical Instruments Medical Instruments Medical Instruments Medical Instruments Medical Instruments Vaccines Provitamins & vitamins, natural/reproduced by synthesis Hormones; their derivatives; steroids Antibiotics Medicament mixtures (not 300, 3005, 3006) not in dosage Medicament mixtures (not 300, 3005, 3006), put in dosage Pharmaceutical goods, specified sterile products sutures, laminaria Mechano-therapy appliance (artif resp, massage app, ozon/oxygen) Orthopaedic appliance (crutche/surgical belts & trusse) Apparatus based on the use of X-rays/of alpha, beta/gamma radiations Med, surg, dental furniture (e.g. dentists & barbers chairs) Human & animal blood; antisera, vaccines, toxins, micro-organism cultures

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