|
Forecast Period
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2026-2030
|
|
Market Size (2024)
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USD 45.26 Million
|
|
CAGR (2025-2030)
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3.77%
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Fastest Growing Segment
|
Consulting
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|
Largest Market
|
Northern & Central
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Market Size (2030)
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USD 55.86 Million
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Market Overview
Saudi
Arabia Biotechnology And Pharmaceutical Services Outsourcing Market was valued
at USD 45.26 Million in 2024 and is expected to reach USD 55.86 Million by 2030
with a CAGR of 3.77% during the forecast period.
The Saudi Arabia biotechnology
and pharmaceutical services outsourcing market is experiencing rapid growth,
driven by the increasing demand for specialized expertise, cost efficiency, and
the need to accelerate research and development (R&D) processes. As the
Kingdom continues to expand its healthcare sector and biotechnology
capabilities, local and international companies are seeking outsourcing
partners to manage key services such as clinical trials, drug discovery, regulatory
compliance, and manufacturing.
One
of the primary factors contributing to the growth of the outsourcing market is
the rising complexity of pharmaceutical and biotech development. Companies are
increasingly relying on Contract Research Organizations (CROs) and Contract
Manufacturing Organizations (CMOs) to provide the necessary technical expertise
and infrastructure required to support these advanced projects. By outsourcing
these functions, companies can streamline operations, reduce overhead costs,
and focus on their core competencies such as innovation and product
development.
Furthermore,
the growing emphasis on regulatory compliance and the need to meet
international standards for drug development and manufacturing is encouraging
companies to seek the expertise of specialized service providers. This trend is
expected to continue driving growth in the Saudi Arabia biotechnology and
pharmaceutical services outsourcing market, as companies look to optimize their
operations and accelerate their time-to-market in a competitive global
landscape.
Key Market Drivers
Growth in Healthcare Industry
The rapid expansion of Saudi Arabia’s healthcare industry has emerged as a key driver of the country’s biotechnology and pharmaceutical services outsourcing market, with over 400 active clinical trials and 15 contract research organizations operating. As part of its Vision 2030 initiative, Saudi Arabia is making substantial investments of $65 billion to enhance its healthcare infrastructure, modernize medical services, and improve the overall quality of healthcare delivery. This growth has created new opportunities for biotechnology and pharmaceutical companies to outsource specialized services, ranging from research and development (R&D) to clinical trials and regulatory compliance.
One of the main factors contributing to this trend is the increasing demand for innovative treatments and biopharmaceutical products in Saudi Arabia. Saudi Arabia's ambitious vision for advancing medical technologies encompasses the integration of artificial intelligence (AI) systems in diagnostics, the development of telemedicine platforms like Seha Virtual Hospital supporting 160 hospitals for remote patient care, and the promotion of precision medicine for personalized treatments.
Additionally, the nation is heavily investing in robotics and automation technologies for surgical procedures and patient care, as well as in digital health record systems to enhance data management and streamline healthcare services, with 1.3 million online doctor consultation users.
As the healthcare sector expands, there is a growing need for advanced therapeutics, including biologics, personalized medicine, and biosimilars. Biotechnology and pharmaceutical companies are turning to outsourcing partners to access cutting-edge technologies, streamline drug development processes, and expedite the commercialization of new treatments supported by $3.9 billion in R&D investments since 2021. This is particularly important as the healthcare system faces rising incidences of chronic diseases such as diabetes affecting 5.3 million adults, cardiovascular conditions impacting 201,300 patients, and cancer with 28,113 new cases annually, which require advanced therapeutic solutions.
According to the International Diabetes Federation (IDF), 5.3 million adults in Saudi Arabia are affected by diabetes mellitus (DM), marking one of the highest burdens in the region and the seventh globally. The complications and mortality associated with DM have far-reaching effects on individuals, communities, and the nation as a whole. Saudi Arabia faces significant DM-related mortality, along with substantial healthcare expenditure allocated to managing DM-related morbidities..
Surge in Technological Advancements
Technological advancements in biotechnology and pharmaceutical research are enabling faster and more efficient drug development processes. Cutting-edge technologies such as high-throughput screening, artificial intelligence (AI), and machine learning are being increasingly adopted by biotechnology and pharmaceutical companies to accelerate research and development (R&D), with AI-focused companies reaching 317 in 2023 and $3.9 billion in funding attracted that year. These innovations help streamline drug discovery, improve predictive modeling, and reduce the time required to bring new therapies to market, creating a greater demand for outsourced services that can provide specialized expertise in these areas.
The rise of biomanufacturing technologies, particularly in the production of biologics such as vaccines, therapeutic proteins, and monoclonal antibodies, is driving the need for advanced outsourcing services. Saudi Arabia is witnessing a growing trend of outsourcing critical biomanufacturing processes to service providers with state-of-the-art facilities and expertise in cell culture, gene therapy, and bioprocessing. SaudiVax is dedicated to localizing biopharmaceutical production and enhancing patient care in Saudi Arabia and internationally, partnering with MilliporeSigma and Cytiva for halal vaccines.
Founded in 2016, the company has emerged as a global leader in biotechnology, recognized for its excellence and groundbreaking advancements in the industry. This surge in biologics production has led to an increased reliance on contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs) that specialize in these sophisticated technologies, including key players like Tabuk Manufacturing Company..
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Key Market Challenges
Limited Local Contract
Research Organizations (CROs)
One
of the key challenges facing the Saudi Arabia biotechnology and pharmaceutical
services outsourcing market is the limited presence of local Contract Research
Organizations (CROs). As demand for outsourcing services continues to rise, the
scarcity of established, local CROs has created a significant gap in the
market, posing obstacles for companies seeking specialized research and
development (R&D) support within the Kingdom.
The
shortage of local CROs forces many biotechnology and pharmaceutical companies
to rely on international service providers, which can lead to higher
operational costs and longer project timelines due to logistical complexities.
Additionally, international partnerships may lack the familiarity with local
regulations, market dynamics, and cultural nuances that are essential for
smooth project execution and regulatory compliance in Saudi Arabia.
Key Market Trends
Expansion of Clinical Trials
and Regulatory Services
The
expansion of clinical trials and regulatory services has become a notable trend
driving growth in Saudi Arabia’s biotechnology and pharmaceutical services
outsourcing market. As the country continues to invest in the development of
its healthcare and pharmaceutical sectors, there is a rising need for
specialized outsourcing partners that can support clinical trials, ensure
compliance with regulatory requirements, and expedite the approval of
innovative treatments.
The
Clinical Trials Administration is committed to delivering its services with
professionalism, focusing on the evaluation, registration, and monitoring of
clinical trials conducted in Saudi Arabia. Its efforts contribute to
safeguarding the well-being of clinical trial participants while enhancing the
expertise of investigators in the field of clinical research. Additionally, the
administration aims to strengthen the regulatory body's capacity, as well as
its legislative and oversight functions. The administration also oversees
inspections of clinical trial sites, ensuring that researchers and research
organizations adhere to all aspects of the study protocol and meet the
requirements outlined in Good Clinical Practice (GCP) and Good Laboratory
Practice (GLP) guidelines.
One
of the key factors behind this trend is the Saudi government's focus on
enhancing its healthcare infrastructure and fostering local pharmaceutical
innovation. The Saudi Food and Drug Authority (SFDA) has introduced streamlined
processes to facilitate clinical trials and speed up drug approvals, creating
an environment conducive to both domestic and international pharmaceutical
companies. This regulatory support has driven a surge in clinical trial activity,
prompting companies to outsource critical services such as trial management,
patient recruitment, data collection, and statistical analysis to specialized
contract research organizations (CROs).
Segmental Insights
Service Insights
Based
on Service, Consulting have emerged as the fastest growing segment in the Saudi
Arabia Biotechnology And Pharmaceutical Services Outsourcing Market in 2024. The
biotechnology and pharmaceutical industries in Saudi Arabia face increasingly
stringent regulations as the country works to align with global standards.
Companies are turning to specialized consulting firms to navigate the complex
regulatory requirements, including compliance with Saudi Food and Drug
Authority (SFDA) guidelines, clinical trial protocols, and manufacturing
regulations. Consulting services are in high demand to ensure that businesses
meet these standards efficiently while avoiding costly delays or compliance
issues.
End User Insights
Based
on End User, Pharmaceutical Companies have emerged as the fastest growing
segment in the Saudi Arabia Biotechnology And Pharmaceutical Services
Outsourcing Market during the forecast period. One key reason is the increasing
demand for cost-effective solutions to streamline drug development and
manufacturing processes. Outsourcing allows pharmaceutical companies to reduce
operational expenses and focus on core competencies, such as research and
development, while leveraging specialized expertise from external partners.
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Regional Insights
Based on Region, Northern & Central have emerged as the dominating region in the Saudi Arabia Biotechnology And Pharmaceutical Services Outsourcing Market in 2024. Both Northern and Central regions have seen significant investments in infrastructure, including $3.9 billion in R&D since 2021 and the development of industrial zones and research parks like KAUST and KACST tailored to the biotechnology and pharmaceutical sectors.
These areas are supported by state-of-the-art facilities for manufacturing, research, and clinical trials, including Lifera CDMO in Riyadh and over 100 healthcare facilities in Riyadh for trials, attracting both local and international companies looking to outsource critical operations like Vertex Pharmaceuticals' gene therapy partnership. This focus on infrastructure aligns with Saudi Arabia’s Vision 2030, which prioritizes the growth of advanced industries, including pharmaceuticals and biotechnology through initiatives like the National Biotechnology Strategy and Saudi Network for Clinical Trials.
Recent Development
- In Oct 2025, the Ministry of Health announced new biotechnology and pharmaceutical partnerships to be unveiled at the Global Health Exhibition 2025 (Riyadh), focused on biomanufacturing, vaccines, and digital health, signaling upcoming outsourcing/localization deals.
- In June 2025, King Faisal Specialist Hospital & Research Centre and Germfree announced an ATMP (cell and gene therapy) GMP manufacturing campus in Riyadh at BIO 2025, enabling in‑Kingdom advanced therapy manufacturing and outsourced production capacity.
- In December 2024, Mabwell signed a licensing and commercialization agreement with Tabuk Pharmaceuticals to register and commercialize two biosimilars across MENA, with a pathway to localization in Saudi Arabia.
- In December 2024, Saudi ministries signed an MoU with Vertex Pharmaceuticals to localize gene therapy manufacturing, focusing on knowledge transfer and in‑country biomanufacturing capability building.
- In
December 2024, Mabwell, an innovative biopharmaceutical company with a
comprehensive industry chain, announced the signing of a licensing and
commercialization agreement with TABUK PHARMACEUTICAL MANUFACTURING COMPANY,
Saudi Arabia's leading pharmaceutical firm, during CPHI Middle East 2024. Under
the agreement, TABUK will oversee the registration and commercialization of two
biosimilars across multiple countries within the Middle East and North Africa
(MENA) region. As a key area for collaboration under the "Belt and
Road" initiative, the MENA region's pharmaceutical market holds
significant growth potential.
- In December 2024, Bio-Thera Solutions Inc., a commercial-stage biopharmaceutical company with a pipeline of innovative therapies and biosimilars, announced a partnership with Tabuk Pharmaceutical Manufacturing Company, a wholly owned subsidiary of Astra Industrial Group and a leading pharmaceutical company in the Middle East and North Africa (MENA) region. Under the agreement, Tabuk will have exclusive rights to manufacture, distribute, and market Bio-Thera's ustekinumab biosimilar, BAT2206, in Saudi Arabia. BAT2206 is a proposed biosimilar to Jansen’s Stelara. Bio-Thera has submitted regulatory filings for BAT2206 with the China National Medical Products Administration (NMPA), the European Medicines Agency (EMA), and the United States Food and Drug Administration (FDA).
- In April 2024, Saudi Arabia introduced its National Biotechnology Strategy, with the goal of becoming a leading biotechnology hub in the MENA region by 2030 and achieving global prominence by 2040. Both the UAE and Saudi Arabia are actively working to build a robust healthcare and life sciences ecosystem in MENA, with a growing emphasis on manufacturing, clinical trial infrastructure, and research and development (R&D). Breakthroughs in genomics and precision medicine are driving new opportunities for personalized healthcare, while the development of targeted therapies aims to enhance patient outcomes and lower healthcare expenses.
- In January 2024, Saudi Arabia unveiled a national biotech strategy with the goal of becoming a global biotechnology hub within the next 16 years. This initiative is part of the broader Vision 2030 framework, which also seeks to establish Saudi Arabia as a biotech leader in the Middle East and North Africa by 2030. In response to the COVID-19 pandemic, the country is focusing on developing new vaccine technologies, prioritizing advanced manufacturing capabilities, and creating local bio-manufacturing platforms. By enhancing its biotech infrastructure, Saudi Arabia aims to increase domestic production, stimulate job creation, and drive economic growth and diversification.
Key Market Players
- Intertek
Group Plc
- SGS
Société Générale de Surveillance SA.
- Charles
River Laboratories International, Inc.
- Eurofins
Saudi Ajal Laboratories
- MERCK
LIMITED
|
By Service
|
By End User
|
By Region
|
- Consulting
- Regulatory Affairs
- Product Design & Development
- Auditing and Assessment
- Product Maintenance
- Training & Education
- Others
|
- Pharmaceutical Companies
- Biotech Companies
|
- Eastern
- Western
- Northern & Central
- Southern
|
Report Scope
In this report, the Saudi Arabia Biotechnology And Pharmaceutical
Services Outsourcing Market has been segmented into the following categories,
in addition to the industry trends which have also been detailed below:
- Saudi Arabia Biotechnology And Pharmaceutical
Services Outsourcing Market, By
Service:
o Consulting
o Regulatory Affairs
o Product Design & Development
o Auditing and Assessment
o Product Maintenance
o Training & Education
o Others
- Saudi Arabia Biotechnology And Pharmaceutical
Services Outsourcing Market, By
End User:
o Pharmaceutical Companies
o Biotech Companies
- Saudi Arabia Biotechnology And Pharmaceutical
Services Outsourcing Market, By Region:
o Eastern
o Western
o Northern & Central
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Saudi
Arabia Biotechnology And Pharmaceutical Services Outsourcing Market.
Available Customizations:
Saudi Arabia Biotechnology And Pharmaceutical
Services Outsourcing Market report with the given market data, TechSci
Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Saudi Arabia Biotechnology
And Pharmaceutical Services Outsourcing Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]