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Saudi Arabia’s pharma, medical device factories surge to 206 with $2.6bn investments

The Ministry of Industry and Mineral Resources reported that this growth includes 56 pharmaceutical factories licensed by the Saudi Food and Drug Authority, with investments in the pharmaceutical sector alone exceeding SR7 billion. File
The Ministry of Industry and Mineral Resources reported that this growth includes 56 pharmaceutical factories licensed by the Saudi Food and Drug Authority, with investments in the pharmaceutical sector alone exceeding SR7 billion. File
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Updated 26 August 2024
Nour El-Shaeri
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Saudi Arabia’s pharma, medical device factories surge to 206 with $2.6bn investments

Saudi Arabia’s pharma, medical device factories surge to 206 with $2.6bn investments
Updated 26 August 2024
Nour El-Shaeri
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RIYADH: The number of pharmaceutical and medical device factories in Saudi Arabia has reached 206, with investments totaling SR10 billion ($2.6 billion), according to official data.

The Ministry of Industry and Mineral Resources reported that this growth includes 56 pharmaceutical factories licensed by the Saudi Food and Drug Authority, with investments in the pharmaceutical sector alone exceeding SR7 billion.

The medical device sector in Saudi Arabia has seen notable advancements. Globally, this market is valued at $500 billion, with Saudi Arabia's share estimated at $6.6 billion.

The Kingdom now boasts 150 licensed medical device factories, representing a 200 percent increase since 2018. Investments in this sector have reached SR3.1 billion, with notable achievements including the production of advanced respiratory devices, insulin syringes, and specialized surgical instruments.

This expansion aligns with the ministry’s broader efforts to localize the pharmaceutical industry and reduce reliance on imports.

Globally, the pharmaceutical market is valued at approximately $1.1 trillion, with the Middle East and Africa accounting for $31 billion of this total.

Saudi Arabia, the largest pharmaceutical market in the region, holds a $10 billion share, representing 32 percent of the market.

Between 2019 and 2023, the Saudi pharmaceutical market grew by 25 percent, rising from $8 billion to $10 billion annually.

This growth highlights a successful push toward localization, with the Kingdom reducing its dependence on pharmaceutical imports from 80 percent in 2019 to 70 percent by 2023.

In June 2022, the ministry announced over SR11 billion in new investment opportunities in the vaccine and biopharmaceutical sectors, aligning with the Kingdom’s strategic goals of enhancing health security and establishing Saudi Arabia as a hub for pharmaceutical and biopharmaceutical production.

Government initiatives, such as the “Made in Saudi” program, have also been instrumental in this expansion by promoting local products on international platforms.

The ministry has focused on enhancing value chains by fostering collaborations in research and development and securing essential raw materials locally.

The Kingdom aims to localize 80-90 percent of its government procurement needs for insulin and vaccines while also attracting foreign investments in the pharmaceutical and healthcare sectors.

Saudi Arabia’s industrial sector demonstrated notable resilience during the COVID-19 pandemic. The ministry quickly ramped up domestic production capacity for essential medical supplies, increasing the daily output of medical masks from 450,000 to 3 million.

In just three months, the number of hand sanitizer factories grew from 12 to 70. These efforts highlight the Kingdom's ability to respond effectively to global supply chain disruptions and further solidify its growing prominence in the pharmaceutical and medical device industries.

Topics: main

Pakistan sees uptick in economic activity as consumer spending surges in Ramadan 

Pakistan sees uptick in economic activity as consumer spending surges in Ramadan 
Updated 57 min ago
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Pakistan sees uptick in economic activity as consumer spending surges in Ramadan 

Pakistan sees uptick in economic activity as consumer spending surges in Ramadan 
  • Consumers flock to markets throughout Ramadan to buy fruits and vegetables in large quantities for evening iftar meals
  • Financial analyst says increased remittances, distribution of Zakat among masses in Ramadan also spurs economic activity 
Updated 57 min ago
Ismail Dilawar

KARACHI: Khadeeja Manzoor haggled with a vendor at a busy market in Pakistan’s Karachi over the price of vegetables. The sight is not an unusual one in Pakistan, especially during the holy month of Ramadan, where people flock to fruit and vegetable markets in thousands daily to buy food items. 

Muslims break their fast with the evening iftar meal during the holy month of Ramadan, consuming dishes prepared with fruits and vegetables in large amounts. This triggers a surge in consumer spending significantly during the holy month, one that increases sales at grocery stores and marketplaces.

“Our spending increases during Ramadan,” Manzoor, 45, told Arab News. “They (actually) double because though the prices of vegetables have declined a bit, other things have become costlier,” she added. 

Pakistan has long grappled with an economic crisis that saw inflation surge to a historic 38 percent in May 2023. However, the government has since then achieved some economic gains, with the country’s monthly inflation rate dropping to 1.5 percent in February on a year-on-year basis.

Dry fruit seller Wasib Abbasi noted that people spent more on items such as Rooh Afza, a sugary drink considered a staple Ramadan diet, and dates during the holy month. This causes a surge in sales during Ramadan, he added. 

“Our sales remain normal during the first 15 days of Ramadan but significantly increase during the second half,” Abbasi, who runs a store selling dry fruits at the busy Empress Market, told Arab News. 

Financial analyst Muhammad Waqas Ghani agrees the increased demand for food items and the increased inflow of remittances to Pakistan during Ramadan supplements the country’s economic growth. He said Pakistan usually sees a rise of 20 percent in remittances during the holy month every year. 

Remittances are a lifeline for Pakistan’s cash-strapped economy, playing a critical role in stabilizing foreign exchange reserves and supporting its balance of payments. Overseas Pakistanis remitted $3.1 billion in February.

“Ramadan does have a significant economic angle. Demand rises in food, lifestyle, and other areas like footwear,” Ghani, the head of research at JS Global Capital Ltd., a commodities brokerage company, told Arab News. 

During Ramadan, commercial banks also deduct billions of rupees from people’s accounts on account of the annual Islamic charity, Zakat. 

Ghani said the circulation of Zakat funds among the masses also increases their purchasing power, which leads to more consumer spending. 

Atiq Mir, chairman of the All Karachi Tajir Ittehad (AKTI), a body of over 400 trade groups in the southern port city, described Ramadan as the “spring month” for traders and citizens alike in terms of both divine blessings and material gains.

“The way people come to bazaars with their children gives a good look,” Mir said, adding that trade “runs above normal” during the holy month.

“Given the size of its population, Karachi alone is a Rs100 billion market if people came out proportionately for Eid shopping only.”
 

Topics: Ramadan 2025 Pakistan economy

Closing Bell: Saudi stock markets rise; TASI climbs over 1%

Closing Bell: Saudi stock markets rise; TASI climbs over 1%
Updated 16 March 2025
Reem Walid
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Closing Bell: Saudi stock markets rise; TASI climbs over 1%

Closing Bell: Saudi stock markets rise; TASI climbs over 1%
Updated 16 March 2025
Reem Walid

RIYADH: Saudi Arabia’s Tadawul All Share Index saw a positive close on Sunday, gaining 127.90 points, or 1.09 percent, to settle at 11,853.78.

The benchmark index recorded a trading turnover of SR4.67 billion ($1.24 billion), with 207 stocks advancing and 35 declining.

Similarly, the Kingdom’s parallel market, Nomu, also posted gains, rising by 139.42 points, or 0.45 percent, to close at 31,275.27. In this market, 50 stocks rose while 30 saw declines. The MSCI Tadawul Index followed suit, gaining 15.52 points, or 1.05 percent, to close at 1,494.79.

Arriyadh Development Co. was the top performer of the day, with its share price soaring by 9.91 percent to SR36.05.

Other notable gainers included Saudi Research and Media Group, whose shares climbed 7.97 percent to SR189.60, and Banan Real Estate Co., which saw a 6.27 percent rise, closing at SR6.95.

On the downside, Saudi Paper Manufacturing Co. experienced the largest drop, falling 3.62 percent to SR58.50. Al-Baha Investment and Development Co. also saw a decline of 2.56 percent, with its shares ending at SR0.38.

Meanwhile, Tihama Advertising and Public Relations Co. saw a 1.84 percent decrease, closing at SR16.

Saudi Reinsurance Co. announced its annual financial results for the year ending Dec. 31.

The company reported a net profit of SR440 million for 2024, a remarkable 628 percent increase compared to 2023. This surge was primarily driven by capital gains from the sale of its stake in Probitas Holding, which amounted to SR365.9 million.

Additionally, the company’s board of directors recommended a 46.6 percent increase in capital by distributing 51.48 million bonus shares to shareholders, translating to four shares for every nine held.

The increase also includes 2.5 million shares allocated for a long-term incentive plan for employees, boosting the company’s capital by an additional 2.16 percent. Despite these strong results, Saudi Reinsurance Co. saw its share price dip by 0.53 percent, closing at SR48.10.

Najran Cement Co. also released its annual financial results for the year ending Dec. 31. The company reported a net profit of SR68.4 million for 2024, reflecting a 24.05 percent increase from 2023. This growth was driven by higher sales and improved gross margins, despite rising general and administrative expenses and finance costs. Najran Cement Co.’s stock rose by 3.34 percent, closing at SR8.75.

Topics: TASI NOMU MSCI stocks

Saudi Arabia launches $266m program to promote eco-friendly projects

Saudi Arabia launches $266m program to promote eco-friendly projects
Updated 16 March 2025
Miguel Hadchity
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Saudi Arabia launches $266m program to promote eco-friendly projects

Saudi Arabia launches $266m program to promote eco-friendly projects
Updated 16 March 2025
Miguel Hadchity

RIYADH: Saudi Arabia has unveiled a new environmental financing initiative worth SR1 billion ($266.6 million), supported by Riyad Bank, to encourage private sector participation in sustainable and eco-friendly projects.

Abdulrahman Al-Fadhli, Saudi Arabia’s minister of environment, water, and agriculture and chairman of the Environmental Fund’s board of directors, officially introduced the program on Sunday.

The launch coincided with the unveiling of a new digital platform for the Incentives and Grants Program, designed to foster innovation and boost environmental investments.

This initiative aligns with Saudi Arabia’s Vision 2030 objectives, which focus on promoting environmental sustainability and enhancing the quality of life.

Munir bin Fahd Al-Sahli, CEO of the Environmental Fund, emphasized that the financing program is aimed at attracting private sector investments to strengthen environmental infrastructure and meteorological services. He also noted that the program will encourage businesses across various sectors to adopt sustainable practices through innovative financial solutions.

Al-Sahli described this partnership as a major step forward in funding environmental projects, highlighting that the new platform would offer incentives and support for outstanding environmental initiatives. These efforts are part of a broader national strategy to protect the environment and foster sustainable development.

The financing program represents a significant milestone in enhancing environmental investments in the Kingdom. It provides businesses and entrepreneurs with resources and incentives to develop projects that not only improve quality of life but also contribute to sustainable environmental growth.

The new electronic platform for the Incentives and Grants Program, which was launched alongside the financing initiative, is designed to streamline the process for beneficiaries and ensure efficient execution of environmental projects. The platform aims to promote eco-friendly practices, foster innovation, and encourage investment in the environmental sector, while also ensuring regulatory compliance across various industries.

Al-Sahli reiterated the fund’s commitment to offering both financial and technical support to ensure lasting positive impacts on the environment. He urged stakeholders in the environmental sector to explore the various opportunities available through the platform.

The Incentives and Grants Program is expected to drive investment in environmental projects and improve compliance levels among institutions. It will provide grants and incentives to a broad range of entities, including small and medium-sized enterprises, corporations, research centers, universities, and nonprofit organizations.

The Environmental Fund continues to develop and implement programs focused on protecting natural resources, reducing pollution, and raising environmental awareness. Through collaborations with government and private entities, it strives to balance economic growth with environmental conservation.

Topics: SaudiVision2030 environment

Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 

Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 
Updated 16 March 2025
Nirmal Narayanan
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Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 

Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 
Updated 16 March 2025
Nirmal Narayanan

RIYADH: Saudi Arabia’s inflation held firm at 2 percent year on year in February, driven largely by rising housing costs, official data showed.  

According to the General Authority for Statistics, the increase was fueled by an 8.5 percent surge in housing rents, contributing to a 7.1 percent overall rise in the housing, water, electricity, gas, and fuels category. 

The inflation rate remains consistent with Saudi Arabia’s efforts to balance economic growth with price stability as the Kingdom advances its Vision 2030 strategy, which aims to diversify the economy beyond oil.   

The government’s November 2024 budget forecast anticipated inflation to hold steady at 1.9 percent in 2025, up slightly from 1.7 percent in 2024. Meanwhile, the World Bank projected a stable 2.3 percent rate this year, below the Gulf Cooperation Council average. 

“On a monthly basis, the consumer price index in February 2025 recorded relative stability compared to January 2025, rising by 0.2 percent due to the increase of housing, water, electricity, gas, and other fuels section by 0.4 percent, driven by a 0.4 percent increase in actual housing rent prices,” said GASTAT.  

Sector breakdown 

Food and beverage prices saw a modest rise of 1 percent, largely influenced by a 3.7 percent increase in meat and poultry costs. Personal goods and services climbed 3.9 percent, bolstered by a 26.7 percent jump in jewelry prices. 

Restaurant and hotel costs edged up 0.8 percent year on year, while furniture and home equipment prices dropped 2.5 percent. Clothing and footwear prices declined 1 percent, led by a 2.4 percent drop in ready-made clothing. 

Transportation costs also dipped 1.5 percent compared to February 2024. 

On a monthly basis, consumer prices remained stable overall, with food and beverages slipping 0.2 percent. Personal goods and services rose 0.7 percent, while health and tobacco prices held steady. 

Wholesale Price Index  

In a separate report, GASTAT noted that Saudi Arabia’s Wholesale Price Index increased 1.5 percent year on year in February, driven by a 3.4 percent rise in other transportable goods prices and a 3.9 percent increase in agriculture and fishery products. 

Food products, beverages, tobacco, and textiles fell by 0.1 percent year on year, while metal products, machinery, and equipment prices dipped 0.5 percent. Ores and minerals costs dropped 1.9 percent. 

Compared to January, the WPI declined 0.5 percent, led by a 1.4 percent fall in other transportable goods prices, excluding metal products, machinery, and equipment. Food products, beverages, tobacco, and textiles also saw a marginal 0.1 percent drop, while agriculture and fishery product costs rose 1.6 percent. 

Topics: Inflation GDP prices

Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges

Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges
Updated 16 March 2025
Reem Walid
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Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges

Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges
Updated 16 March 2025
Reem Walid

RIYADH: The Arab region’s gross domestic product increased by 1.8 percent, reaching $3.6 trillion in 2024, despite facing regional challenges, according to new data.

The report, released by the Arab Investment and Export Credit Guarantee Corporation or Dhaman, showed that growth was primarily concentrated in Saudi Arabia, the UAE, Egypt, Iraq, and Algeria, which together accounted for over 72 percent of the region’s total GDP, as reported by the Kuwait News Agency.

This aligns with Moody’s January forecast that oil production and major investment projects will drive a 0.8 percentage point increase in annual economic growth across the Middle East and North Africa in 2025.

It also corresponds with Moody’s projection of 2.9 percent growth for the region in 2025, up from 2.1 percent in 2024, while maintaining a stable outlook on the region’s sovereign credit fundamentals for the next 12 months.

The data also indicated positive outlooks for the Arab economy’s performance in 2025, with an expected growth rate of 1.4 percent.

This growth is likely to be driven by expansion in 14 Arab countries, including nine oil-producing economies that together contribute more than 78 percent of Arab GDP.

There is cautious optimism surrounding the potential reduction in regional unrest and conflicts, along with an expected improvement in revenues from oil, gas, and exports of goods and services produced by the region.

In January, Moody’s emphasized that the impact of large investments in 2025 will be most evident in Saudi Arabia, driven by significant government and sovereign wealth fund spending related to the Vision 2030 diversification program.

Moody’s also noted that the pick-up in the MENA economy will be primarily fueled by stronger growth among hydrocarbon exporters, as a result of the partial unwinding of strategic oil production cuts under the OPEC+ agreement.

According to Moody’s, real GDP growth for hydrocarbon-exporting nations is expected to rise to 3.5 percent in 2025, up from 1.9 percent in 2024. This boost will be driven by countries like Saudi Arabia, the UAE, Iraq, Kuwait, and Oman easing the oil production cuts implemented in 2023.

Topics: Arab region MENA GCC economy

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