Domestic pharma capacity can help keep drug prices competitive

Many comments and social media posts have highlighted the high prices of medicines in the country compared to neighbouring states, as this represents a significant financial burden for many patients and low-income families.
At the same time, some people direct their concerns to government officials, while others raise the issue on social media, encouraging people, whenever possible, to purchase medicines from certain countries in the region through travellers or tourists. In some cases, prices abroad may be only 20% of those in the local market.
For example, some medicines sold locally for RO 30 may reportedly be available in Türkiye for around RO 2.5. Such examples are frequently cited in public discussions, with calls for the relevant authorities to give greater attention to this issue, given that medicine is an essential humanitarian necessity for patients.
People are also urging the concerned authorities to review medicine pricing policies and monitor pharmacies to ensure that prices are not increased excessively. They further stress the importance of sourcing medicines from countries that produce equivalent pharmaceutical products, such as India, Türkiye and Iran, where lower-cost alternatives are available, enabling patients to access treatment at more affordable prices.
Drug prices in the Sultanate of Oman are relatively high because most medicines are imported from abroad. This is also the case across the Gulf region, where the majority of medicines are sourced from Europe, the United States, Japan and other countries. Whenever global prices rise due to inflation, higher energy costs, shipping expenses, or increases in raw material prices, these increases are directly reflected in local markets.
It is important to note that many of the active pharmaceutical ingredients used in medicine manufacturing originate from countries such as China and India. As a result, any disruption in supply chains, fluctuations in oil prices, or increases in maritime transportation costs can contribute to higher global medicine prices.
Another factor contributing to higher medicine prices is the relatively small size of the Omani market compared to larger importing countries, which affects economies of scale and increases the unit cost of medicines. In addition, some patients require original patented medicines protected under international intellectual property rights for many years due to the extensive scientific research, clinical trials and development costs incurred by pharmaceutical companies. This results in significant price differences between branded medicines and generic alternatives produced in other countries.
In general, global pharmaceutical markets are influenced by several factors, including exchange rates, oil prices, shipping costs, raw material prices and global inflation, all of which affect importing countries.
Some people believe that medicines imported from countries such as India, Türkiye and Iran offer equivalent therapeutic effectiveness and are not necessarily of lower quality than those produced in European countries. These medicines are officially registered, subject to regulatory oversight and manufactured in approved facilities. In fact, pharmaceutical manufacturers in some of these countries have advanced considerably and their products now offer high quality at competitive prices compared to medicines produced in Europe and the United States. Their lower prices are often attributed to lower labour costs, large-scale production, government support, sizeable domestic markets and lower taxation.
More broadly, the Omani and Gulf markets need to strengthen local pharmaceutical production by expanding domestic manufacturing capabilities and supporting scientific research in the pharmaceutical and medical industries. Such efforts could help transform the region into a hub for pharmaceutical production while promoting greater regional integration in these strategic sectors.