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Saudi Localization of Pharmaceutical Industry a Priority to Face Future Emergency

An industrial city in Saudi Arabia. (SPA)
An industrial city in Saudi Arabia. (SPA)
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Saudi Localization of Pharmaceutical Industry a Priority to Face Future Emergency

An industrial city in Saudi Arabia. (SPA)
An industrial city in Saudi Arabia. (SPA)

Saudi Arabia wants to localize its pharmaceutical industries in anticipation of any future changes at the level of supply chains.

Saudi Minister of Industry and Mineral Resources Bandar al-Khorayef announced that localization is now the government’s top priority given the importance of drug security.

Khorayef stressed that all parts of the industrial system complement their roles in providing the necessary infrastructure, financing and logistical support.

The minister visited Monday al-Madina al-Munawwara Industrial City where he inspected services and progress in various projects.

He indicated that localization and providing a suitable job environment for Saudis is equally important as localizing the pharmaceutical industry itself.

He added that industry has a great opportunity to generate qualitative jobs in various regions of the Kingdom, stressing that localization should provide qualitative jobs.

The minister visited Razi al-Madinah Pharmaceuticals, which was recently inaugurated by Madinah Governor Prince Faisal bin Salman bin Abdulaziz, as the first pharmaceutical factory in the region, covering an area of 13,800 square meters.

The company produces various medicines, creams and cosmetics, and aims to export all products to the Middle East, Asia and Europe.

Khorayef also toured Maaden for industrial minerals, which produces Magnesium Carbonate, Magnesite, and Caustic Calcined Magnesia, and exports its products to Gulf countries, Asia, Europe, the United States, Egypt, Tunisia and South Africa.

Director-General of the Saudi Authority for Industrial Cities and Technology Zones (MODON), Khalid al-Salem, underscored the state’s keenness on industrial development.

He said the Minister of Industry is communicating with investors and supervising the development stages of various projects in all industrial cities.

MODON wants to create an integrated environment to attract and localize national and international investments through its strategy to empower the industry, increase local content and enhance the factories’ ability to achieve the highest levels of productivity in line with Vision 2030.

Al-Madina al-Munawwara Industrial City was established in 2003 over an area of 17 million square meters. It hosts over 334 factories, with a total capital of $30.1 billion.

It boasts diverse industries such as computers, electronics, machinery and equipment, leather, pharmaceutical, food, rubber and plastic products and chemicals, motor vehicles, and textiles.

The Industrial City is located in a geographical area rich in various natural resources including gold, nickel, copper, and other mineral ores. Investment in the mining sector in the region has reached $1.6 billion.

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Dollar Tumbles as Investors Seek Safe Havens after US Tariffs

US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Tumbles as Investors Seek Safe Havens after US Tariffs

US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar weakened broadly on Thursday, while the euro rallied after President Donald Trump announced harsher-than-expected tariffs on US trading partners, unsettling markets as investors flocked to safe havens such as the yen and Swiss franc.

The highly anticipated tariff announcement sent shockwaves through markets, with global stocks sinking and investors scrambling to the safety of bonds as well as gold.

Trump said he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners.

The new levies ratchet up a trade war that Trump kicked off on his return to the White House, rattling markets as fears grow that a full-blown trade war could trigger a sharp global economic slowdown and fuel inflation, Reuters reported.

The dollar index, which measures the US currency against six others, fell 1.6% to 102.03, its lowest since early October.

The euro, the largest component in the index, gained 1.5% to a six-month high of $1.1021.

Trump has already imposed tariffs on aluminium, steel and autos, and has increased duties on all goods from China.

"Eye-watering tariffs on a country-by-country basis scream 'negotiation tactic', which will keep markets on edge for the foreseeable future," said Adam Hetts, global head of multi-asset and portfolio manager at Janus Henderson Investors.

The risk-sensitive Australian dollar added 0.56% to $0.63365, while the New Zealand dollar climbed 0.9% to $0.5796.

The yen strengthened to a three-week high against the dollar and was last up 1.7% at 146.76 per dollar, while the Swiss franc touched its strongest level in five months at 0.86555 per dollar.

"Negotiations are now going to be front of mind. This is probably the other big part of why we're seeing some of these currencies outperform," said Nicholas Rees, Head Of Macro Research at Monex Europe.

"It's very difficult actually to see how other countries make concessions that would encourage the US to lift these tariffs. And I think that's a big underpriced risk."

Investors are worried that some US trading partners could retaliate with measures of their own, leading to higher prices.

EU chief Ursula von der Leyen described the tariffs as a major blow to the world economy and said the 27-member bloc was prepared to respond with countermeasures if talks with Washington failed.

Worries about a global trade war have intensified since Trump stepped into the White House in January, combining with a slew of weaker-than-expected US data to stoke recession fears and undermine the dollar.

The dollar index is down more than 5.7% this year.

"These tariffs have certainly significantly increased the risks to the downside for global growth, so on balance we think that will eventually start to become more supportive again for the dollar," said Lee Hardman, senior currency analyst at MUFG.

In Asia currencies, China's onshore yuan slid to its weakest level against the dollar since February 13. China's offshore yuan also hit a two-month low.

The Vietnamese dong slumped to a record low.

Elsewhere, the Mexican peso and Canadian dollar strengthened.

Canada and Mexico, the two largest US trading partners, already face 25% tariffs on many goods and will not face additional levies from Wednesday's announcement.