The Saudi pharmaceutical industry is still at its infancy, but what has already been achieved by this sector is credit-worthy. Some large units have come up in the pharmaceutical field as well as in the medical products group.
In the manufacture of various kinds of pharmaceutical products, there are nine units with an investment of over SR one billion, according to the latest Saudi Industrial Directory published by the Ministry of Commerce and Industry.
Al-Qassim can claim to have the largest Saudi pharmaceuticals manufacturing unit-Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO). SPIMACO, started in 1986 with a capital of SR 198.5 million, has grown in size and stature and commands currently a paid-up capital of SR 600 million. It manufactures a variety of medicines such as anti-bacterials, tranquilizers & anti-pyretics, anti-acids, anti-rheumatics, anti-hestamenics, anti-convulsion & cough medicines, vermicides, antidiarrheal & anti-fungal medicines and vitamins.
Jeddah region has 3 major units Glaxo Saudi Arabian Ltd, Pharmaceutical Solution Industries and Jamjoum Medicine Factory. Riyadh region has 3 units manufacturing a variety of medicines like medical reagents, eye wash solutions, injection water & treated water for organs wash, kidney wash solutions, blood cells counting solutions, reagent solutions used in blood & urine tests, other reagents and blood bacteria. Tabuk and Dammam have one unit each.
Healthcare Products: In the manufacture of healthcare products and appliances, there are 23 units with a combined capital investment of SR 762 million. These units produce a wide variety of products ranging from medical syringes, needles, bandages, gloves, bags, bed sheets and uniforms to medical soap, shampoo and X-ray films.
Medical Lenses: There are 8 units producing different types of medical lenses, spectacle frames and sun glasses. Initial capital investments in this segment amounted to SR 55.2 million.
Veterinary Medicines: The are four units manufacturing a range of veterinary medicines. These include skin softeners, feed additives & concentrates, intestinal vermicides for cattle, mineral salts, disinfectants, vitamins, antibiotics, fungal & antiinflammatory medicines, insecticides and disinfectants.
There are 9 joint ventures in the manufacture of pharmaceutical and other healthcare products in Saudi Arabia with their cumulative foreign direct investments estimated at SR 195 million.
Jordan is the single largest foreign investor in this sector with an investment exceeding SR 60 million. It is also the only foreign country which has a 100% owned company, Al- Hayat Factory for Medical Products, in the Kingdom. It was established in Dammam in 1988 with a capital investment of SR 8.2 million. Its products include medical ointment & soap, cosmetics, cough drops, skin softeners, back plasters, skin detergents and medical shampoo. Jordan has also a joint venture, Tabuk Co for Medical Industries. It was established in 1993 with an investment of SR 175 million (Jordan's share 30%).
UK is a major investor in this sector.
Its joint venture, Glaxo Saudi Arabian Co Ltd (GSACL), was established in 1991 in Jeddah. UK's initial direct capital investments in the GSACL was around SR 55 million or 49% of the company.
Another big investor is Germany which has established 3 joint venture companies here. Germany's initial investments in these units were around SR 49 million. These firms are National Medical Products Co Ltd (German share 20% or SR 16.5 million), Medical Filters Co (German share 25.72% or SR 21.9 million) and Pharmaceutical Solution Ltd (German share 9.6 % or SR 10.1 million).
US has a significant investment in the Saudi pharmaceutical industry. It has a 19 % stake in the Arab Medical Products Manufacturing Ltd which is located in Riyadh with a total investment of SR 67 million. Other foreign investors in this sector include Turkey, Canada, Egypt, Morocco, Tunisia, Sudan, Lebanon, Iran, Iraq, Bahrain, Kuwait, Oman and Qatar.
Medical Products Industries in Eastern Province Plan Big Expansion
The Eastern Province might not have made much headway in the core segment of the pharmaceutical industry, but it can claim to have made a big contribution in the healthcare products sector. This is especially so in respect of manufacturing certain vital products for healthcare-syringes, chemical reagents and medical bandages.
What is more, these Eastern Province companies not only cater to the needs of Saudi hospitals, but also have developed a flourishing export trade.
By Shamsul Huda
© Saudi Commerce and Economic Review 2006
