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Protection of Intellectual Property Helps Saudi Pharmaceutical Industry Attract More Investments

Approving protection of intellectual property prompts an increase in investments in the Saudi pharmaceutical industry. (Asharq Al-Awsat)
Approving protection of intellectual property prompts an increase in investments in the Saudi pharmaceutical industry. (Asharq Al-Awsat)
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Protection of Intellectual Property Helps Saudi Pharmaceutical Industry Attract More Investments

Approving protection of intellectual property prompts an increase in investments in the Saudi pharmaceutical industry. (Asharq Al-Awsat)
Approving protection of intellectual property prompts an increase in investments in the Saudi pharmaceutical industry. (Asharq Al-Awsat)

Samir Khalil, executive director for the Pharmaceutical Research and Manufacturers of America (PhRMA) Middle East and Africa (MEA), confirmed that Saudi Arabia’s protection of intellectual property will boost the Kingdom’s pharmaceutical industry.

Khalil also predicted that the size of the Saudi pharmaceutical market, which is the largest in the region, will reach 39 billion riyals ($10.4 billion) by 2024.

Through empowering the Saudi Authority for Intellectual Property, the Kingdom’s leadership aims to encourage pharmaceutical manufacture, Khalil said in an interview with Asharq Al-Awsat.

He noted that PhRMA and its affiliated companies view positively the Saudi plan for national transformation, known as Vision 2030, especially on how it tackles developing the innovative pharmaceutical sector through attracting more investment and conducting advanced clinical research.

More so, the Global Intellectual Property Challenges Forum, held on the sidelines of the 2020 G20 Riyadh summit under Saudi Presidency, has strengthened existing policies and global cooperation on developing and manufacturing treatments and vaccines for the coronavirus.

Khalil indicated that there are 570 treatments and 51 vaccines for Covid-19 currently being tested in the world.

He stressed that the Middle East and Africa region hosts one of the world’s most dynamic pharmaceutical markets with an accelerating industrial growth.

Noting that Saudi Arabia is one of the largest pharmaceutical markets in the region, Khalil said that the Kingdom has witnessed dramatic development over the past years. This was triggered by the increase in population, the rise in GDP and the emergence of more diseases that require treatment.

Speaking on Vision 2030’s strategy for encouraging investment in the pharmaceutical industry, Khalil said: “We have worked over the past years to explore many opportunities to promote policies that contribute to attracting innovation to the region.”

PhRMA's goals focus on helping patients by providing them with the latest innovative medicines and vaccines. The trade group also places great importance on strengthening the concept of protecting intellectual property in the pharmaceutical industry sector. Systems that provide an incubating environment for the protection of innovation are perceived as inviting.

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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.