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Saudi Arabia Pushes to Boost Pharma Industry, Achieve Self-Sufficiency

A factory in al-Dammam produces various medical supplies, including face masks. (SPA)
A factory in al-Dammam produces various medical supplies, including face masks. (SPA)
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Saudi Arabia Pushes to Boost Pharma Industry, Achieve Self-Sufficiency

A factory in al-Dammam produces various medical supplies, including face masks. (SPA)
A factory in al-Dammam produces various medical supplies, including face masks. (SPA)

Saudi Arabia is working to boost its pharmaceutical and medical equipment industries by localizing production, increasing their GDP contribution, and reducing dependence on imports to achieve health security and self-sufficiency.

Currently, there are 206 facilities in these sectors, with investments totaling SAR 10 billion ($2.66 billion).

Saudi Industry Minister Bandar Alkhorayef recently discussed localizing vaccine and drug production with Brazilian counterparts, as this sector is a key focus of the National Industrial Strategy.

The goal is to strengthen the Kingdom’s independence in meeting medical needs and to develop the Kingdom into a major hub for this growing industry.

Fitch Solutions reported that Saudi Arabia’s pharmaceutical market was worth $11.72 billion (SAR 44 billion) in 2022 and is projected to reach $15.09 billion (SAR 56.6 billion) by 2027, growing at an annual rate of 5.2%.

To improve healthcare and provide services to all citizens, the Kingdom has allocated SAR 214 billion ($57 billion) in its 2024 budget for health and social development, in line with the Sustainable Development Goal of ensuring healthy lives for all.

As part of the National Industrial Strategy and Vision 2030, Saudi Arabia has localized the production of key medical products, including ventilators for intensive care units and blood glucose monitors and test strips.

Experts told Asharq Al-Awsat that localizing pharmaceutical and medical device production in Saudi Arabia will create high-paying jobs, ensure steady supplies, reduce import reliance, attract investment, and boost the Kingdom’s health security and self-sufficiency.

Speaking to Asharq Al-Awsat, Osama Al-Zamil, former Deputy Minister of Industry and Mineral Resources, emphasized the global economic impact of the pharmaceutical industry, which ranks second worldwide in sales.

He noted that Saudi Arabia is the largest pharmaceutical market in the Middle East and North Africa, valued at SAR 28 billion ($7.46 billion) in 2020, with projections to reach SAR 44.1 billion ($11.76 billion) by 2030.

Al-Zamil also highlighted the strong growth potential for the pharmaceutical and medical device sectors in the Kingdom.

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Trump Vows New Tariffs on Mexico, Canada and China

FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo
FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo
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Trump Vows New Tariffs on Mexico, Canada and China

FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo
FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo

US President-elect Donald Trump vowed on Monday to impose sweeping new tariffs on Mexico, Canada and China as soon as he takes office as part of his effort to crack down on illegal immigration and drugs.

He said he would impose a 25% tax on all products entering the country from Canada and Mexico, and an additional 10% tariff on goods from China, as one of his first executive orders.

In a series of posts to his Truth Social account, Trump vowed to hit some of the United States' largest trading partners with duties on all goods entering the country.

“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% tariff on ALL products coming into the United States,” he wrote, according to AFP.

He said the new tariffs would remain in place “until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”

The President ignored the US, Mexico and Canada three-decade-old free trade agreement, now called the USMCA.

In another post, Trump said he would also be slapping China with a 10% tariff, “above any additional Tariffs,” in response to what he said was its failure to tackle fentanyl smuggling.

“No one will win a trade war,” Liu Pengyu, a spokesman for China's embassy in the United States, told AFP by email, defending Beijing's efforts to curb fentanyl smuggling.

“China believes that China-US economic and trade cooperation is mutually beneficial in nature,” Liu added.

Canada said it was “essential” to US energy supplies, and insisted the relationship benefits American workers.

“We will of course continue to discuss these issues with the incoming administration,” said the statement from Deputy Prime Minister Chrystia Freeland.

Tariffs are a key part of Trump's economic agenda, with the Republican vowing wide-ranging duties on allies and adversaries alike while he was on the campaign trail.

Many economists have warned that tariffs would hurt growth and push up inflation, since they are primarily paid by importers bringing the goods into the US, who often pass those costs on to consumers.

But those in Trump's inner circle have insisted that the tariffs are a useful bargaining chip for the US to push its trading partners to agree to more favorable terms, and to bring back manufacturing jobs from overseas.