Saudi Arabia Generic Drug Market Report, Share & Industry Analysis 2026-2034

Market Overview

Saudi Arabia generic drug market size reached USD 4.1 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 8.1 Billion by 2034, exhibiting a growth rate (CAGR) of 7.88% during 2026-2034. The pharmaceutical sector in Saudi Arabia features a rapidly expanding segment of affordable equivalent medications. Government policies promote local production, streamline approvals, and encourage wider adoption to reduce healthcare spending, driven by rising chronic illnesses and greater public acceptance of cost-effective options. Utilization continues to increase steadily.

How AI is Reshaping the Future of Saudi Arabia Generic Drug Market:

• The SFDA has rolled out its SAIL Artificial Intelligence Lab to speed up approvals for generics and other drugs, using AI for things like digital twin simulations and data analysis that make the whole regulatory process much faster and more efficient for local producers.

• SFDA's groundbreaking AI model predicts drug shortages proactively, helping ensure a steady supply of affordable generics across the Kingdom and supporting better supply chain stability for manufacturers focused on cost-effective medicines.

• With generic utilization sitting at 76% and spending on them reaching 44% in recent claims data, AI tools are boosting efficiency in production and distribution, letting companies cut costs and keep prices low while meeting rising demand from government policies.

• Government efforts under Vision 2030 push digital transformation in healthcare, where AI streamlines everything from clinical trial simulations to product approvals, giving Saudi generic firms a real edge in bringing affordable alternatives to market quicker.

• Local players like Jamjoom Pharma, SPIMACO, and Hikma are tapping into AI for smarter operations, from demand forecasting to quality control, which helps them compete stronger in a market where generics save hundreds of millions in Saudi Riyals annually through better adoption and efficiency.

Grab a sample PDF of this report: https://www.imarcgroup.com/saudi-arabia-generic-drug-market/requestsample

Market Growth Factors

The Saudi Arabia generic drugs market is experiencing robust expansion driven by government initiatives aimed at enhancing healthcare affordability and reducing dependency on imported branded medications. Regulatory reforms by the Saudi Food and Drug Authority have streamlined approval processes for generics, encouraging both local and international manufacturers to expand their portfolios. This supportive framework aligns with broader national strategies to promote cost-effective alternatives, fostering greater acceptance among healthcare providers and patients. Additionally, policies incentivizing generic substitution in public and private sectors are accelerating adoption, contributing to a shift toward more sustainable pharmaceutical spending while maintaining treatment quality and accessibility across the kingdom.

Rising prevalence of chronic conditions such as diabetes, cardiovascular diseases, and hypertension is significantly boosting demand for affordable long-term therapies in the generic segment. These health challenges, linked to lifestyle changes and an aging population, require consistent medication use, making cost-efficient generics a practical choice for widespread management. Increased public awareness about the equivalence and safety of generics compared to branded options further supports their uptake, as educational efforts highlight benefits in managing ongoing illnesses without compromising efficacy. This trend strengthens the market by addressing growing healthcare needs through accessible and reliable treatment alternatives.

Expansion of local manufacturing capabilities represents a key trend, supported by investments in domestic production facilities and localization efforts to build self-reliance in the pharmaceutical sector. Collaborations between government entities and industry players are enhancing supply chain efficiency and ensuring steady availability of generics. This development reduces reliance on foreign imports, improves distribution networks, and stimulates economic growth within the kingdom. As more facilities achieve compliance with international standards, the market benefits from increased competition, innovation in production techniques, and a stronger focus on meeting domestic requirements for essential medicines.

Market Segmentation

Therapy Area Insights:

To get more information on this market

• 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 Developement & News

• December 2025: The Saudi Food and Drug Authority (SFDA) hosted the Generic Drugs Conference in Riyadh, titled "Empowering Local Pharmaceutical Manufacturing: The Future of Generic Drugs in Saudi Arabia," focusing on regulatory enablers, R&D challenges in formulation, pricing policies, and GMP compliance to boost public confidence in locally produced generics and enhance national drug security.
• February 2026: The SFDA introduced upcoming drug pricing reforms, including a unified pricing rule for reference (branded) and similar (generic/biosimilar) drugs, a 25% automatic price reduction on reference drugs upon the launch of the first similar drug, and an increased ceiling price of 80% (from previous 70% for generics) for the first similar drug to encourage faster generic entry and market competition.
• 2026: NUPCO tenders enforced stricter localization requirements, rejecting foreign bids for generics if equivalent locally manufactured SFDA-approved options exist, pushing global companies toward in-country production and aligning with Vision 2030 goals to raise local pharmaceutical manufacturing significantly for generics.

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us

IMARC Group,

134 N 4th St. Brooklyn, NY 11249, USA,

Email: [email protected],

Tel No: (D) +91 120 433 0800,

United States: +1-201971-6302