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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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Foreign Investments in Saudi Arabia Triple, with Over 1,200 Benefiting from Premium Residency

The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)
The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)
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Foreign Investments in Saudi Arabia Triple, with Over 1,200 Benefiting from Premium Residency

The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)
The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)

Saudi Arabia has tripled its foreign investment inflows and increased the number of investors tenfold since the launch of Vision 2030. More than 1,200 international investors have also obtained premium residency in the Kingdom.

These figures were revealed by Minister of Investment Khalid Al-Falih during the 28th Global Investment Conference, held in Riyadh on Monday under the patronage of Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister.

Al-Falih emphasized that premium residency is a key enabler for attracting foreign investment, as it simplifies procedures for investors and enhances their ability to seize the opportunities available in Saudi Arabia, solidifying the Kingdom’s position as a global investment hub. Residency holders, he noted, are treated as if they were in their home countries.

Since the introduction of Vision 2030, investment inflows have tripled, and the GDP has grown by 70%, reaching $1.1 trillion—half of which comes from non-oil sectors, he continued.

Al-Falih also stressed the immense opportunities in areas such as digital infrastructure and research-driven economic growth. He identified sustainability and circular carbon economy projects as key focus areas for future investment.

He acknowledged the geopolitical risks and labor shortages that pose challenges to investment. However, he projected that the Global South is poised to attract half of global financial flows by 2025.

The minister went on to say that hosting the Global Investment Conference in Riyadh provides Saudi Arabia with a platform to present its strategic vision to international partners and highlight its status as a trusted partner in sustainable economic growth.

Nivruti Rai, Managing Director and CEO of Invest India and President of the World Association of Investment Promotion Agencies (WAIPA), underscored the importance of international collaboration in achieving sustainable growth and digital transformation. She lauded Vision 2030 as a model for economic and social progress, underlining the role of technology, education, and tourism in driving development.

The world has consumed nearly 2.5 trillion metric tons of greenhouse gas emissions, leaving only 500–700 billion metric tons for sustainable use, she noted, while underscoring the need for countries like Saudi Arabia and India to lead innovation in renewable energy sources such as solar, wind and green hydrogen.

Saudi Arabia’s commitment to innovation in energy and water was also commended, with Rai describing mega projects like NEOM as a “dream come true” and a leading example of integrating technology and sustainability to improve quality of life.

During a panel discussion, Saudi Minister of Economy and Planning Faisal Al-Ibrahim revealed that investment and fixed capital now constitute 25% of the GDP. He noted that Vision 2030 has unlocked vast opportunities in previously untapped sectors, including mining, tourism, culture, and entertainment, significantly contributing to the Kingdom’s non-oil growth.

Al-Ibrahim stressed the importance of adopting advanced technologies in renewable energy, green hydrogen, defense, education, and healthcare.

He stressed Saudi Arabia’s role as a central platform for accessing new markets and boosting global economic stability through continuous innovation.

Egyptian Minister of Investment and Foreign Trade Hassan Al-Khatib highlighted the importance of Saudi-Egyptian cooperation and sound policy adoption to attract investments in promising sectors.

Saudi investments in Egypt would significantly contribute to fostering a favorable investment climate, he said.

Greek Deputy Minister of Foreign Affairs Kostas Fragogiannis discussed Greece’s focus on attracting investments in gas, including talks with Saudi Arabia and other nations, to access European markets.

The Invest in Saudi Arabia platform organized the three-day Global Investment Conference from November 25 to 27 in collaboration with WAIPA. This major event brings together global leaders, investors, and stakeholders to explore opportunities in sustainable growth and digital transformation, aiming to diversify and enhance global investment strategies.