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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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FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)
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Oil Up as Israel, Hezbollah Trade Accusations of Ceasefire Violation

FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)
FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)

Oil prices ticked up on Thursday after Israel and Lebanon’s Hezbollah traded accusations that their ceasefire had been violated, and as Israeli tanks fired on south Lebanon.

OPEC+ also delayed by a few days a meeting likely to extend production cuts.

Brent crude futures edged up by 30 cents, or 0.4%, to $73.13 a barrel by 1741 GMT. US West Texas Intermediate crude futures were up 23 cents, 0.3%, at $68.93. Trading was thin because of the US Thanksgiving holiday, Reuters reported.
Israel's military said the ceasefire was violated after what it called suspects, some in vehicles, arrived at several areas in the southern zone.
The deal, which took effect on Wednesday, was intended to allow people in both countries to start returning to homes in border areas shattered by 14 months of fighting.
The Middle East is one of the world's major oil-producing regions, and while the ongoing conflict has not so far not impacted supply it has been reflected in a risk premium for traders.
Elsewhere, OPEC+, comprising the Organization of the Petroleum Exporting Countries and allies including Russia, delayed its next policy meeting to Dec. 5 from Dec. 1 to avoid a conflict with another event.
Also supporting prices, OPEC+ sources have said there will again be discussion over another delay to an oil output increase scheduled for January.
"It's highly unlikely they are going to announce an increase production at this meeting," said Rory Johnston, analyst at Commodity Context.
The group pumps about half the world's oil but has maintained production cuts to support prices. It hopes to unwind those cuts, but weak global demand has forced it to delay the start of gradual increases.
A further delay has mostly been factored in to oil prices already, said Suvro Sarkar at DBS Bank. "The only question is whether it's a one-month pushback, or three, or even longer."
Depressing prices slightly, US gasoline stocks rose 3.3 million barrels in the week ending Nov. 22, the US Energy Information Administration said on Wednesday, countering expectations of a small draw in fuel stocks ahead of holiday travel.
Slowing fuel demand growth in top consumers China and the US has weighed on oil prices this year.