Jordan’s pharmaceutical exports made impressive gains in the regional and global market, witnessing an increase of 20 per cent in 2012.
The growth in exports was recorded despite adverse regional conditions and other difficulties facing the industry. According to Mohammad Ali Shahin of the Jordan Chamber of Industry, export of pharmaceutical products climbed from US $503 million to US $643 million. Commenting on the healthy growth rate, he said that,”should the sector continue to grow, the exports of the pharmaceutical industry would generate US $1 billion by the end of 2015″. However, the industry needs to maintain competitiveness and quality of products to retain this trend.
Exports to regional markets were hurt due to the Arab Spring, which resulted in barriers of accessibility. The political upheaval caused hindrances in shipping, security and logistics, while a decrease in currency exchange rates also affected the industry. Although Jordanian companies face some difficulty in registration of products, the country exports its medicines to around 65 markets. However, the regional market offers tremendous potential for sales growth. The six Gulf Cooperation Council (GCC) member states are expected to grow by an average of 7% a year to 2020. As a result, the value of sales will increase from US $5.6 billion in 2010 to US $10.8 billion. The growth will be supported by favorable regulatory policies in the region, which will also attract competition from both multinationals and local companies.
Jordan’s pharmaceutical market contributes an estimated US $600 million to the national economy, while also providing direct and indirect employment to around 8000 people in the country. Currently, twenty local pharmaceutical plants, having a market value exceeding US $1.41 billion, are engaged in the production of medicines in Jordan. As the domestic pharmaceutical companies have started production of quality medicines, spending on local medicines now comprises more than 30 per cent of the overall spending on medicine. The Jordanian pharmaceutical market has matured over the years and now includes industries such as packing and packaging, research and studies, training, and promotion.