The country's growing demand for healthcare services and increasing investment activity in the industry have attracted the attention of multinational pharmaceutical companies.

Several big names in the pharmaceutical industry, including Novartis, Pfizer, Sanofi, Merck, and GlaxoSmithKline, have already established a presence in Saudi Arabia through direct investment or partnerships with local companies.

In May, Jamjoom Pharma achieved one of the largest initial public offerings in the Kingdom, raising SR1.26 billion ($340 million) by pricing its shares at SR60 each, marking the top end of the price range.

"The IPO signifies that pharmaceutical companies are willing to go public and raise capital from the stock market, reflecting growing confidence in the economy's growth potential and the investment climate in Saudi Arabia," said Fitch Solutions in its analysis of the Kingdom's growing industry.

With a population exceeding 34 million people, Saudi Arabia's healthcare system faces mounting pressure to cater to the needs of its residents.

The escalating demand for healthcare services is a significant catalyst for pharmaceutical investment in the country.

"This demand is driven by factors such as an aging population, the rise of chronic diseases, and the increasing public awareness of healthcare issues," pointed out the analysis.

According to Fitch Solutions, Saudi Arabia's pharmaceutical market was valued at SR44 billion in 2022 and is expected to reach SR56.6 billion in 2027 with a compound annual growth rate of 5.2 percent.

The government has implemented regulatory reforms to encourage investment and support the development of the local pharmaceutical industry.

The country's strategic location and strong logistics infrastructure also make it an attractive base for pharmaceutical companies looking to expand their presence in the wider region.

"Many companies have established regional headquarters or distribution centers in the country, using