The Omani pharmaceutical market is poised for significant expansion. In 2024, it was valued at approximately USD 303 million, with analysts forecasting a compound annual growth rate (CAGR) of around 6.6% through 2031, reaching USD 474 million. Another forecast indicates steady growth at a 5.2% CAGR, with revenues expected to hit USD 408.4 million by 2025.

Public pharma expenditure currently represents just under 10% of overall health spending Fitch Solutions, while the increase in private insurance and mandatory coverage is also boosting demand 

Local Production Scale-Up

Dhofar Region

• A RO 90 million investment in Dhofar’s pharmaceutical sector (May 2025) has led to multiple production facilities, including three drug factories, a packaging plant, and a medical-supplies facility.

• Notable infrastructure includes a RO 15 million IV and dialysis solutions factory (capacity: 15 million IV units & 2.3 million dialysis units annually)

  Specialized Facilities

• Menagen Pharmaceutical Industries, with over RO 20 million in investment (Rusail, June 2024), is the region’s first factory for rare disease medicines, compliant with EMA/FDA 

• Philex Pharmaceutical Industries (Salalah Free Zone), launched in early 2023, targets 1 billion tablets and capsules per year with potential ~$150 million investment across phases 

• Opal BioPharma, in partnership with MoH and Nazdahar, is developing an advanced biologics facility in Khazaen Economic City to manufacture vaccines and biopharmaceuticals

• Additionally, Menagen plans include cutting-edge work in cell and gene therapy. 

  Government Agreements

  In February 2025, MoH signed agreements with six Omani companies (Philex, Menagen, Opal, Dhofar Pharma, Izz Pharma, Health Supplies Factory) to secure local manufacture of drugs, biologics, rare-disease treatments, IV and dialysis solutions, and medical supplies. 

  Market Structure & Import Displacement

  Despite rapid growth, local production remains modest:

Locally made pharmaceuticals accounted for just 4.6% of medicine purchases in 2023, up from 1.8% in 2021.The government has launched policies to incentivize investments in pharmaceuticals through economic zones offering tax/customs exemptions, GMP/ISO accreditation support, and streamlined licensing. 

Alignment With Vision 2040

These initiatives support Oman Vision 2040, aiming to raise domestic pharma production from 8% in 2021 to 20% by 2025 and ultimately 50% by 2050. The focus is on medical security, diversification, technology transfer, job creation, and export-led growth.Oman is actively building a robust pharmaceutical ecosystem through strategic public–private investments, cutting-edge manufacturing, and policy reforms. While local pharma still accounts for a modest portion of market share, the growth trajectory—spanning vaccines, rare-disease therapeutics, and medical supplies—signals a national pivot toward healthcare sovereignty, economic diversification, and export readiness.

Sources :

https://www.zawya.com/en/economy/gcc/oman-new-strategy-to-boost-pharma-investments-x5grqr0t

https://www.blueweaveconsulting.com/press-release/oman-pharmaceuticals-market-size-set-to-reach-usd-474-million-by-2031

https://www.thearabianstories.com/2025/05/07/dhofar-emerges-as-omans-pharma-powerhouse-with-ro-90-million-investment

https://www.fitchsolutions.com/bmi/pharmaceuticals/omans-pharmaceutical-sector-will-grow-moderately-amid-limited-domestic-opportunities-18-02-2025

https://omannews.gov.om/topics/en/128/show/122172/dark

https://oxfordbusinessgroup.com/reports/oman/2023-report/education-health/development-drive-the-governments-commitment-to-investing-in-social-services-strengthens-education-and-health-care-provision-overview

https://timesofoman.com/article/146285-pharma-factory-opened-to-manufacture-medicines-for-rare-diseases

https://www.zawya.com/en/economy/gcc/oman-new-strategy-to-boost-pharma-investments-x5grqr0t

https://opalbiopharma.com/opal-biopharma-and-omans-ministry-of-health-sign-landmark-agreement-to-advance-local-biopharmaceutical-manufacturing