GCC E-Pharmacy Industry Analysis: Market Size, Key Players & Future Growth Prospects

According to IMARC Group's latest research publication, global GCC e-pharmacy market size reached USD 2.37 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 9.44 Million by 2033, exhibiting a growth rate (CAGR) of 15.4% during 2025-2033.

How AI is Reshaping the Future of GCC E-Pharmacy Market

• Personalized Medication Recommendations and Patient Profiling: AI analyzes purchase history, health records, and treatment patterns to suggest personalized medication options and wellness products. Machine learning algorithms identify patient needs and recommend relevant OTC drugs, supplements, and chronic disease management products, improving medication adherence by 25-40%.
• Smart Inventory Management and Demand Forecasting: AI-powered systems predict medication demand by analyzing prescription trends, seasonal patterns, and regional health data. These platforms optimize stock levels across distribution networks, reducing medication shortages by 30% while minimizing waste from expired products in temperature-controlled storage facilities.
• Automated Prescription Verification and Fraud Detection: Machine learning algorithms verify digital prescriptions in real-time, detecting fraudulent documents, duplicate orders, and potential drug interactions. AI systems cross-reference prescription data with patient histories, flagging suspicious patterns and ensuring regulatory compliance while reducing verification time from hours to seconds.

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GCC E-Pharmacy Industry Overview:

The GCC e-pharmacy sector is experiencing rapid transformation driven by government digitalization initiatives and rising chronic disease prevalence. UAE's internet penetration reached 99% with 9.46 million users and 10.73 million social media users representing 112% of the population, creating a strong foundation for digital pharmacy adoption. Emirates Health Services launched four robotic pharmacies and the region's first smart drug self-dispensing system in October 2024, advancing automation and patient safety. Saudi Arabia's 99% internet penetration with over 36.84 million users supports seamless access to e-pharmacy platforms through smartphones. Vision 2030's digital health initiatives and telemedicine integration are accelerating sector growth, with platforms offering prescription uploads, automated refills, and 24/7 virtual pharmacist consultations. The growing middle class and rising disposable incomes are increasing demand for convenient healthcare solutions, particularly among working professionals managing chronic conditions.

GCC E-Pharmacy Market Trends & Drivers

Smartphone penetration and digital infrastructure are fundamentally reshaping pharmaceutical access across the Gulf. DataReportal shows UAE recorded 20.96 million cellular connections representing 219.4% of the population, while smartphone usage stands at 93% in both UAE and Saudi Arabia—among the world's highest rates. This connectivity enables consumers to browse medications, compare prices, upload prescriptions, and schedule doorstep deliveries through mobile apps. E-pharmacies leverage this infrastructure to provide seamless prescription management for chronic disease patients requiring regular medications like diabetes treatments and cardiovascular drugs. Government-backed digital health strategies including UAE's Artificial Intelligence Strategy 2031 and Saudi Arabia's Health Sector Transformation Program are accelerating adoption through supportive regulations. PureHealth's Dawak platform, launched in November 2023 for SEHA patients, exemplifies this trend with sealed dosage packs, timely reminders, and pharmacist consultations. Aster DM Healthcare announced plans to expand from 14 to 186 pharmacies across Saudi Arabia by 2030 with USD 250 million investment, launching the myAster app for prescription and wellness product delivery within 60 minutes, demonstrating the sector's rapid scaling.

The surge in chronic diseases and aging demographics is driving sustained demand for reliable pharmaceutical access. According to the International Diabetes Federation, Saudi Arabia recorded 23.1% diabetes prevalence in 2024, affecting approximately 5.3 million adults out of 25 million total adult population. The WHO estimates 74 million people in the Eastern Mediterranean region live with diabetes, with GCC prevalence reaching 20%. Life expectancy has risen dramatically from 60 years in the late 1970s to 83 years in 2025 across Gulf states, with 80% of healthcare needs occurring post-retirement. E-pharmacies address these challenges through subscription-based medication delivery, automated refill reminders, and chronic disease management programs that improve treatment adherence. Altibbi, the Middle East's largest AI-based digital health platform, raised USD 44 million in Series B funding in March 2022 to expand into online pharmacy and diagnostics while enhancing machine learning capabilities for precise diagnoses and prescriptions. Chefaa secured USD 5.25 million funding in December 2023 from Newtown Partners, Global Brain, GMS Capital, and Verod-Kepple Africa Ventures, expanding across 8 Saudi cities after success in Egypt, digitizing pharmaceutical supply chains and improving medication compliance through patient-centric features.

Telemedicine integration and digital-first healthcare models are creating seamless end-to-end patient experiences. McKinsey research shows online pharmacies are the most widely used digital health solutions in both KSA and UAE, with high user retention rates between 64-87% across app categories. Patients can now consult healthcare providers virtually through teleconsultation platforms, receive digital prescriptions, and order medications through integrated e-pharmacy systems without physical pharmacy visits. The e& enterprise and Burjeel Holdings announced a cloud-based telemedicine project collaboration in January 2024, focusing on telehealth solutions, remote patient monitoring, and improved care quality. In August 2025, Saudi Arabia launched advanced AI-powered telemedicine platforms including Seha Virtual Hospital and Nala, while Healinharam.com connected pilgrims to medical services across Makkah, Madinah, and Jeddah supporting Vision 2030's medical tourism goals. The Saudi Arabia digital health market reached USD 2.37 billion in 2024 and is projected to hit USD 11.07 billion by 2033. Quadria Capital allocated a quarter of its USD 1 billion fund to GCC digital health, signaling strong investor confidence in the sector's growth trajectory and positioning the region as a strategic hub for healthcare innovation.

GCC E-Pharmacy Market Report Segmentation:

By Drug Type:

• Over the Counter (OTC) Drugs
• Prescription Drugs

Over the Counter (OTC) drugs represent the largest segment, driven by consumer preference for self-medication, accessibility without prescriptions, and growing health awareness among populations seeking preventive healthcare solutions.

By Therapy Area:

• Diabetes
• Dermatology
• Cardiovascular
• Respiratory
• Oncology
• Immunology
• Others

Diabetes dominates the therapy area segment due to the region's 20% prevalence rate and continuous need for insulin, glucose monitors, and related medications requiring regular refills through convenient digital platforms.

By Platform:

• Web-Based
• App-Based

App-based platforms hold the larger market share owing to widespread smartphone adoption, personalized user experiences, push notifications for refills, real-time order tracking, and seamless integration with teleconsultation services.

Regional Insights:

• Saudi Arabia
• UAE
• Qatar
• Bahrain
• Kuwait
• Oman

Saudi Arabia exhibits clear dominance in the GCC e-pharmacy market driven by its large population, Vision 2030 digital transformation initiatives, 99% internet penetration, and government support for healthcare digitalization.

Recent News and Developments in GCC E-Pharmacy Market

• January 2024: e& enterprise and Burjeel Holdings announced collaborations to transform UAE healthcare through a cloud-based telemedicine project and a strategic MoU. The partnership focuses on telehealth solutions, remote patient monitoring, and sustainable healthcare practices, improving access, operational efficiency, and care quality.
• March 2024: Altibbi raised USD 44 million in Series B funding led by Foundation Holdings, Hikma Ventures, and existing investors Global Ventures and DASH Ventures. The company plans to expand the platform's offering into online pharmacy and diagnostics collection while increasing investments in machine learning.
• December 2023: Chefaa, a patient-centric pharmacy platform, secured USD 5.25 Million in funding led by Newtown Partners and Global Brain, with participation from GMS Capital, Verod-Kepple Africa Ventures, and M3, Inc. Following its successful launch in 8 Saudi cities, the investment will support Chefaa's efforts to digitize the pharmaceutical supply chain.
• January 2025: Aster DM Healthcare announced expansion plans at Arab Health 2025 to establish over 186 pharmacies across Saudi Arabia within five years through a joint venture with Al Hokair Holding Group, backed by USD 250 million investment. The company will launch its myAster app for prescription and wellness product delivery.

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