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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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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.