Oman’s Pharmaceutical Market to Reach $1.24 Billion: What This Growth Means for Investors and Entrepreneurs
MUSCAT, JULY 7 – The Sultanate of Oman is actively enhancing its special economic zones, free zones, and industrial cities to secure a larger share of the rapidly expanding pharmaceuticals and medical devices sector. The domestic pharmaceutical market is anticipated to reach $1.24 billion by 2031, growing from an estimated $752.4 million in 2024 at a compound annual growth rate of 7.4%. These figures were reported in The Duqm Economist July edition, referencing data from the Public Authority for Special Economic Zones and Free Zones (OPAZ).
OPAZ highlights numerous investment opportunities in areas such as generic drug manufacturing, research laboratories, production of active pharmaceutical ingredients, vaccines, biopharmaceuticals, medical equipment, digital health solutions, surgical instruments, and smart health monitoring devices.
This strategic initiative supports Oman’s goals of advancing industrial diversification, decreasing reliance on imports, and fostering high-value manufacturing clusters associated with healthcare, logistics, and advanced technologies.
Pharmaceutical imports into Oman have surged by 8.9% from $565 million in 2021 to $670.3 million in 2023, reflecting growing domestic and regional demand. Presently, about 11 major pharmaceutical projects and manufacturing facilities operate within Oman’s special economic zones, free zones, and industrial cities, according to OPAZ.
Salalah Free Zone has attracted pharmaceutical investments exceeding $600 million, including firms such as Philex Pharmaceuticals, Dhofar Pharmaceutical Industries Company, International Pharmaceutical Complex, and Oman Pharmaceutical Products Company.
Similarly, Khazaen Economic City hosts pharmaceutical investments valued at approximately $600 million, with key players like the Integrated Pharmaceutical Industries Complex, the Veterinary Vaccines Factory, Opal Bio Pharma, and Pharma City contributing to the ecosystem.
Madayn has secured over $100 million through specialized projects, including Menagen Pharmaceutical Industries, Global Ambassadors for Health, Al Farabi Veterinary and Agricultural Pharmaceuticals, and National Pharmaceutical Industries.
Sohar Freezone continues to bolster its pharmaceutical sector with projects such as Julphar Gulf Pharmaceutical Industries, Oman Pharmaceutical Products Company, and Penicillin General Integrated Industrial Company.
The sector benefits from locally available resources such as gypsum for pharmaceutical excipients, water desalination and treatment facilities, fish oils and squalene, limestone, and dolomite, along with the penicillin manufacturing project in Sohar. The medical devices segment also presents investment potential in medical polymers, rubber and latex, medical textiles, and adhesives.
Notably, National Pharmaceutical Industries exports to over 50 countries, and Dhofar Pharmaceutical Industries inaugurated a new manufacturing facility in Raysut in 2024. Philex Pharmaceuticals stands out as one of the largest ventures, with a $150 million investment and an annual capacity of producing one billion tablets and capsules.
OPAZ offers a range of incentives to investors, including tax exemptions for up to 30 years, customs exemptions on raw materials and equipment, 100% foreign ownership, no minimum capital requirements, long-term residency visas for investors, and renewable usufruct agreements of up to 50 years. Sector-specific incentives include advance purchase agreements covering 10 to 20% of production for select companies and a 10% price preference for certain national products in government tenders.
On a global scale, the pharmaceutical market is projected to reach approximately $1.2 trillion by 2025, with North America leading at $691.5 billion, followed by Asia at $249.6 billion, and Europe at $205.2 billion. The GCC markets contribute around $9.9 billion to this total.
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Oman’s strategic focus on developing its pharmaceutical and medical devices sectors within special economic zones presents a prime opportunity for businesses to tap into a rapidly expanding $1.24 billion market by 2031, driven by rising domestic and regional demand. Smart investors should consider leveraging incentives like tax exemptions, foreign ownership, and long-term visas, while entrepreneurs can capitalize on growing manufacturing and research clusters to reduce import dependence and diversify the industrial base. This creates both growth potential and competitive advantage in a sector aligned with global healthcare trends.
