New strategy to boost pharma investments
Despite some recent gains, the gap between local pharmaceutical production and import dependency remains significant. As of end-December 2023, locally manufactured pharmaceuticals accounted for just 4.6% of total medicine purchases, with imports making up the remaining 95.4%. However, national production capacity has shown encouraging growth — from a mere 1.8% in 2021 to 4.7% in 2022.
According to Dr Hilal bin Ali al Sabti, Minister of Health (MoH), the new policy envisions the establishment of pharmaceutical manufacturing facilities within economic zones, free zones, and industrial cities, in line with Good Manufacturing Practices (GMP).
Speaking to Duqm Economist, the newsletter of the Public Authority for Special Economic Zones and Free Zones (OPAZ), Dr Al Sabti said these zones offer a highly conducive environment, supported by advanced technical infrastructure, efficient regulatory frameworks, and integrated support services aligned with international standards.
'Industrial cities and special economic and free zones are attractive investment environments due to the financial incentives and regulatory facilitations they offer, including customs and tax exemptions. These advantages help lower production costs and enhance competitiveness,' he noted.
Currently, eight pharmaceutical factories are operational in Oman: five fully integrated drug production facilities, two plants producing active pharmaceutical ingredients (APIs) for human medicines, and one facility focused on secondary packaging as an initial step in the production chain.
While these factories are spread across industrial cities and free zones, the majority are located within industrial cities, which offer more advanced infrastructure and integrated services — factors that contribute to improved manufacturing quality and faster market availability.
'Measures are in place to support pharmaceutical factories in obtaining international accreditations such as GMP and ISO. Oman has a clear vision to position itself as a regional hub for pharmaceutical exports, in line with Oman Vision 2040,' the Minister stated.
Dr Al Sabti affirmed that the Ministry is actively encouraging foreign direct investment (FDI) in the sector and promoting strategic partnerships with leading international pharmaceutical companies to facilitate technology transfer, localise production, and build domestic expertise.
To this end, the Ministry is working to streamline registration and licensing procedures and is supporting public-private partnerships to foster an integrated and sustainable pharmaceutical manufacturing ecosystem. The aim, he said, is to drive innovation and ensure the availability of high-quality, efficient medical products.
A key element of the new strategy is the fast-tracking of registration processes for locally manufactured medicines, supported by technical assistance throughout the regulatory cycle and accelerated quality testing to ensure safety and compliance.
'Recognising the strategic importance of this sector for national health security and self-sufficiency, the Ministry has established a robust regulatory framework in line with global standards. Through the Drug Safety Centre, we provide continuous technical support to manufacturers during planning, implementation, and licensing phases to ensure compliance with health and safety requirements. Locally manufactured medicines are given priority in the registration and evaluation process,' Dr Al Sabti added.
The Ministry also welcomed projections of strong growth in Oman's pharmaceutical sector, underpinned by a pipeline of strategic projects targeting local production of sterile medicines, oncology drugs, and vaccines — key therapeutic categories that are central to achieving national drug security.
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