Saudi Arabia’s pharmaceutical sector is set to receive a significant boost after the Kingdom’s National Industrial Development Center signed a tripartite memorandum of understanding with Jubail Pharma and RR Holding Co.
The agreement is set to boost local manufacturing of chemical compounds used to produce pharmaceutical products.
The partnerships will also help localize the manufacturing of active pharmaceutical ingredients, intermediate materials and chemicals for the industry and conduct studies on the investment landscape in the pharma sector.
Jubail Pharma is one of the leading Saudi pharmaceutical production companies while RR Holding Co. is a UAE-based company that has operations in several manufacturing industries such as oil, gas, energy and textiles.
NIDC stated that the MoU comes as part of the center’s strategy to boost local manufacturing, especially in the petrochemicals and pharma components sector, according to a release by the center’s official page on X.
NIDC also stated that the partnership will enhance the Kingdom’s local medicine manufacturing and ensure national security in terms of pharmaceutical products.
The center aims to empower the Kingdom’s capabilities by creating an independent pharmaceutical sector to secure the country’s health needs.
According to NIDC’s release, the Kingdom’s pharmaceutical sector is the largest in the Middle East in terms of investment size, encompassing around 30 percent of the region’s total value.
The Kingdom currently has 40 local factories in the pharma sector which cover 29 percent of Saudi Arabia’s needs with revenue exceeding SR1.5 billion ($399 million).
According to Fitch Solutions, the research arm of US-based Fitch Ratings, Saudi Arabia’s pharmaceutical market was valued at SR44 billion in 2022 and is expected to reach SR56.6 billion in 2027, with a compound annual growth rate of 5.2 percent.
The Saudi government has also implemented regulatory reforms to encourage investment and support the development of the local pharmaceutical industry. —AN
