The Pharmaceutical Industry in Palestine could be considered as a unique industry if compared with other sectors in terms of its innovation and development. The pharmaceutical industry plays an important role in providing the local market with its pharmaceutical needs. The overwhelming majority of sales are directed toward the Palestinian market. Currently, there are six major Palestinian companies predominantly located in the Ramallah area, where 70% of local producers are located. Local production is relatively unfocused, with manufacturers tending to produce homogeneous product lines. This has created strong inter-industry competition and has weakened the sector in its attempt to develop and improve into a distinctive sector that invests in real research and development and benefits from economies of scale. Most locally produced pharmaceuticals are generic and may not have a significant effect upon satisfy the market in terms of disease and sickness relief.

The Palestinian pharmaceutical manufacturers are Good Manufacturing Practices (GMP) compliant and are ISO 9000 and ISO 14000 certified. Over 1,000 products of various dosage forms of drugs are produced and registered with Palestinian Ministry of Health. The industry invested over $30 million in the last five years on improving facilities and equipment to meet GMP requirements.

The industry covers over 50% of Palestinian pharmaceuticals needs. The industry exports to over fifteen Arab, African and European countries. Total annual sales of the industry are about $40 million, and total number of employees is about 900 employees.

Source: Union of Palestinian Pharmaceutical Manufacturers (UPPM), 2007