The Localization Prescription

The Middle East is one of the world’s most import-dependent regions for pharmaceuticals. This strategic vulnerability has led governments across the region to increasingly invest in domestic pharmaceutical production to limit their exposure to external supply disruptions. This installment of Charting the Middle East examines efforts to reduce reliance on imported pharmaceuticals, as the Iran war heightens the risk for certain medicine shortages.

Investments in domestic pharmaceutical production have largely yet to translate to self-sufficiency. National planning strategies—including Saudi Arabia’s Vision 2030, Qatar’s National Manufacturing Strategy, and the UAE’s 2025 “Make it in the Emirates” initiative— identify pharmaceutical imports and medical technology as priority sectors for localization. Yet, between 2015 and 2025, net pharmaceutical imports rose significantly across all three countries, in part, due to the demand for newer, high-value, patented medication, including GLP-1 drugs. However, as many of these drug patents expire in 2026, opportunities for regional generic production could expand.

Jordan and Egypt illustrate two different forms of pharmaceutical localization. Jordan remained a net exporter, reflecting its established, export-oriented industry and longstanding procurement policies favoring local manufacturers. Egypt also recorded comparatively low net imports and substantial domestic manufacturing, yet currency depreciation has made imported active ingredients more expensive, contributing to shortages and higher prices for locals.

Lebanon’s net imports fell from approximately $160 per capita in 2020 to $46 in 2023, largely due to reduced purchasing power due to the country’s economic collapse, rather than increased domestic production.