Middle East Active Pharmaceutical Ingredient CDMO Market (2025 - 2033) Size, Share & Trends Analysis Report By Product (Traditional API, HP-API, Biologics) By Synthesis (Synthetic, Biotech), By Drug, By Application, By Workflow, By Region, And Segment Forecasts

Market Size & Trends

The Middle East active pharmaceutical ingredient CDMO market size was estimated at USD 7.23 billion in 2024 and is projected to reach USD 11.64 billion by 2033, growing at a CAGR of 5.58% from 2025 to 2033. The market is driven by the growing prevalence of chronic diseases, a focus on generic and biosimilar drugs, and significant technological advancements. Supportive government policies, investment in pharmaceutical infrastructure, and streamlined regulatory processes further stimulate domestic and international players to expand operations in the region. 

In addition, the shifting preference of pharmaceutical companies toward outsourcing complex manufacturing processes rather than investing heavily in in-house capabilities is also one of the factors contributing to the market growth. Outsourcing these activities helps pharmaceutical companies to focus more resources on innovation, clinical research, and market expansion. These factors reduce financial risks, shorten development timelines, and allow for faster scalability, which is particularly valuable in a region where healthcare demand is rising rapidly. Furthermore, global players are showing increasing interest in entering the Middle Eastern market due to its strategic geographic location, which offers access to both developed and emerging economies, making it an attractive hub for pharmaceutical trade and distribution.

Furthermore, increasing government initiatives aimed at strengthening local drug manufacturing to ensure regional supply security are also one of the factors fueling the market growth. Several countries in the region are prioritizing domestic production capabilities to reduce dependence on imports and improve access to essential medicines. This has opened opportunities for CDMOs that can provide advanced technologies and regulatory expertise to support local firms. In parallel, a growing number of collaborations and joint ventures between multinational pharmaceutical companies and regional players are accelerating knowledge transfer and boosting overall manufacturing capacity.

Opportunity Analysis

The API CDMO market in the Middle East presents several untapped opportunities that both regional and international players can leverage. Growing demand for biologics and biosimilars is one of the factors, as many countries in the region are witnessing a rise in chronic and lifestyle-related diseases. This shift toward advanced therapies creates space for CDMOs with expertise in large-scale biomanufacturing, fermentation, and cell culture technologies. Moreover, patent expirations of branded drugs are accelerating the demand for generic APIs. CDMOs that can deliver high-quality, cost-efficient generics are well-positioned to capture a substantial share of this expanding segment.

Technological Advancements

Technological advancements are enhancing quality, scalability, and efficiency across development and manufacturing stages. Furthermore, flow chemistry and continuous manufacturing are increasingly being adopted to reduce costs, enable faster production cycles, and improve reproducibility. Moreover, advanced bioprocessing platforms such as single-use bioreactors, perfusion systems, and high-density cell culture technologies are accelerating the manufacturing of large-scale biologics and complex APIs. Thus, constant advancement in this field is creating significant competitive advantages for CDMOs, enabling them to offer higher quality and more flexible services to meet the growing demand of pharmaceutical companies. 

Product Insights

On the basis of product, the market is classified into Traditional Active Pharmaceutical Ingredient (Traditional API), Highly Potent Active Pharmaceutical Ingredient (HP-API), and biologics. The traditional API segment accounted for the largest revenue share of 44.14% in 2024. The segment's growth is due to the increasing prevalence of chronic diseases, which require long term medications and the established manufacturing expertise of CDMOs in producing cost-effective, high-quality traditional APIs. Moreover, the lower regulatory complexity and faster development timelines compared to biologics and HP-APIs are also some of the factors contributing to the market growth.

Biologics segment is anticipated to grow at the fastest CAGR during the forecast period. The segment growth is owing to an increasing adoption of advanced biologic therapies, such as monoclonal antibodies, vaccines, and cell and gene therapies, which are used for the treatment of complex and chronic diseases. Moreover, rising investment by pharmaceutical companies in biologics development, coupled with the expansion of specialized biomanufacturing capabilities by CDMOs in the Middle East, is fueling the demand for biologics.

Synthesis Insights

In terms of synthesis, the market is segregated into synthetic and biotech. The synthetic segment dominated the market with a notable revenue share in 2024. The growth of the segment is attributed to well-established manufacturing processes, lower production costs, and shorter development timelines linked with synthetic APIs compared to biotech products. In addition, the growing demand for small-molecule drugs in the Middle East, coupled with the presence of experienced CDMOs capable of large-scale synthetic API production, is further contributing towards the segment’s dominance.

The biotech segment is anticipated to grow at the fastest CAGR during the forecast period. The segment growth is due to the growing investments by pharmaceutical companies in innovative therapies, along with the expansion of specialized biomanufacturing facilities by CDMOs in the Middle East are some of the factors fueling the rapid adoption of biotech products.

Drug Insights

Based on drug, the market is segregated into innovative and generic. The innovative segment held the largest revenue share in 2024. The growth of the segment is due to the growing emphasis on launching several initiatives, including research collaborations and technology transfer initiatives. Middle Eastern pharmaceutical companies are increasingly partnering with global innovators to localize the production of advanced therapies, further reducing the dependency on imports.

The generics segment is anticipated to grow at the fastest CAGR during the forecast period. This growth is due to the expiration of branded drug patents. Moreover, the expansion of contract manufacturing partnerships and the rising capabilities of regional CDMOs are further driving the production and adoption of generic drugs.

Application Insights

With respect to indication, the market is segregated into oncology, hormonal, glaucoma, cardiovascular disease, diabetes, and others. The oncology segment held the largest market share in 2024 due to the rising incidence of cancer in the region, increasing adoption of targeted and personalized therapies, and growing investment in cancer research and treatment infrastructure. Moreover, the high demand for innovative anticancer drugs, coupled with the region’s focus on improving early diagnosis and access to advanced therapies, is driving the expansion of oncology-focused API CDMO services.

The glaucoma segment is anticipated to grow at the second-fastest CAGR during the forecast period. The segment growth is due to an increasing geriatric population, leading to an increase in glaucoma cases, further driving the demand for better treatment options. Moreover, the growing demand for long-term and effective ophthalmic treatments, coupled with advancements in drug delivery systems such as sustained-release implants and eye drops, is fueling the need for glaucoma-related APIs.

Workflow Insights

On the basis of workflow, the market is segregated into clinical and commercial. The commercial segment dominated the market in 2024 owing to large-scale production requirements of established pharmaceutical companies, consistent demand for approved drugs, and the presence of robust manufacturing infrastructure in the region. In addition, CDMOs in the region are increasingly investing in capacity expansion, advanced technologies, and compliance with international quality standards to support commercial-scale manufacturing, further strengthening this segment’s leadership. 

The clinical segment is anticipated to grow at a considerable CAGR during the forecast period. The segment growth is driven by the rising number of drug candidates entering early- and late-stage clinical trials and increasing investments in R&D by pharmaceutical and biotech companies. Moreover, rising venture capital funding and government-backed initiatives to strengthen regional pharmaceutical research are further accelerating the number of investigational drugs moving into trials.

Country Insights

Saudi Arabia Active Pharmaceutical Ingredient CDMO Market Trends

The Saudi Arabia active pharmaceutical ingredient CDMO industry accounted for the largest revenue share of 34.65% in 2024. This is attributed to the strong government support, rising healthcare expenditure, and the country’s long-term vision to diversify its economy beyond oil. The Kingdom’s “Vision 2030” strategy places a clear emphasis on developing a robust domestic pharmaceutical manufacturing base, with a focus on reducing dependency on imports and ensuring greater drug security. This initiative is creating significant opportunities for CDMOs to establish partnerships, transfer technology, and build advanced manufacturing capabilities within the country.

UAE Active Pharmaceutical Ingredient CDMO Market Trends

The active pharmaceutical ingredient CDMO industry in the UAE is driven due to the rising demand for generics and biosimilars, particularly as patent expirations continue to reshape the regional pharmaceutical landscape. A growing burden of chronic diseases, including diabetes and cardiovascular conditions, is pushing healthcare providers to seek affordable, high-quality therapies, which in turn boosts demand for outsourced API development and manufacturing.

Kuwait Active Pharmaceutical Ingredient CDMO Market Trends

The Kuwait active pharmaceutical ingredient CDMO industry is expected to grow significantly due to the country’s increasing healthcare expenditure, rising prevalence of chronic and lifestyle-related diseases, and the government’s focus on strengthening the domestic pharmaceutical sector. Kuwait is working to reduce its reliance on imported medicines by encouraging local manufacturing and fostering collaborations with international pharmaceutical and contract manufacturing companies. This strategy is creating favorable opportunities for CDMOs that can provide advanced production technologies, regulatory expertise, and cost-effective manufacturing solutions. 

Key Middle East Active Pharmaceutical Ingredient CDMO Company Insights

The major players operating across the market are focused on adopting inorganic strategic initiatives such as mergers and acquisitions, and partnerships, among others. Moreover, companies focus on technological innovations to augment their market position. For instance, in November 2023, Hovione expanded its nasal drug delivery through a partnership with Industrial Design Consultancy (IDC), introducing innovative nasal powder devices for local, systemic, and nose-to-brain drug delivery. The partnership enhanced Hovione's integrated nasal drug development and manufacturing services.

Recent Developments

• In June 2025, Recipharm entered into a partnership agreement with the ProductLife Group (PLG), a provider of product development and regulatory affairs services. The partnership aimed to accelerate the time to clinical trials market while reducing regulatory challenges, compliance, and the supply chain.

• In December 2024, Cambrex entered into a collaboration agreement with Lilly, which aimed to deliver faster access to clinical development capabilities for Lilly’s biotech collaborators. 

Middle East Active Pharmaceutical Ingredient CDMO Market Report Scope

Middle East Active Pharmaceutical Ingredient CDMO Market Report Segmentation

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the Middle East active pharmaceutical ingredient CDMO market report based on product, synthesis, drug, application, workflow, and country:

• Product Outlook (Revenue, USD Million, 2021 - 2033)

  • Traditional Active Pharmaceutical Ingredient (Traditional API)

  • Highly Potent Active Pharmaceutical Ingredient (HP-API)

  • Biologics

• Synthesis Outlook (Revenue, USD Million, 2021 - 2033)

  • Synthetic

  • Biotech

• Drug Outlook (Revenue, USD Million, 2021 - 2033)

  • Innovative

  • Generics

• Workflow Outlook (Revenue, USD Million, 2021 - 2033)

  • Clinical

  • Commercial

• Application Outlook (Revenue, USD Million, 2021 - 2033)

  • Oncology

  • Hormonal

  • Glaucoma

  • Cardiovascular disease

  • Diabetes

  • Others

• Country Outlook (Revenue, USD Million, 2021 - 2033)

  • Saudi Arabia

  • UAE

  • Kuwait

  • Oman

  • Qatar