• The transformative collaboration will create a new entity called Abdi Cigalah Pharma (ACP) which will support Saudi’s ambitious Vision 2030 by attracting foreign investments, creating a localized pharmaceutical industry, and creating a potential number of job opportunities for Saudi citizens.

Jeddah, Saudi Arabia – Cigalah Healthcare, a leading player in the Saudi healthcare sector for pharmaceuticals and medical equipment, has forged a groundbreaking agreement with Abdi Ibrahim, a Turkish pharmaceutical industry leader in Türkiye, that will emphasize the introduction of high-quality pharmaceutical products into the Saudi market.

The new collaboration will not only strengthen the presence of both companies in the region but will also elevate healthcare standards across the region and reflects a broader trend of regional cooperation and integration within the pharmaceutical industry.

The first of its kind joint venture entails a direct importation of products as well as local manufacturing with a committed timeline for full localization in the kingdom, creating a significant number of employment opportunities for Saudi nationals. Cigalah Healthcare, through its manufacturing arm ‘Alpha Pharma’, will evaluate market entry strategies for high-potential product. The products that will be commercialized under the agreement include Central Nervous System (CNS), Cardiovascular system (CVS), Respiratory system, and Oncology.

The partnership was formalized at the Ritz Carlton, Jeddah, on 29 April 2024 through a signing ceremony and was attended by Cigalah and Abdi Ibrahim leadership and representatives including Mr. Nezih Barut, Chairman of Abdi Ibrahim, Dr. Süha Taşpolatoğlu, CEO of Abdi Ibrahim and Mr. Yaser Naghi, Chairman & CEO of Cigalah Healthcare.

Nezih Barut, Chairman of Abdi Ibrahim said: “As a longstanding company with 112 years of history, we owe our leadership in the Turkish pharmaceutical industry to our commitment to benefiting our country, our people, and the world wherever we operate. Abdi İbrahim's strategic expansion to partner with Cigalah serves as another milestone in its journey of international growth. Healing more lives with each passing day, we are thrilled to embark on this collaborative journey which aligns with our commitment for sustainable growth and global expansion, strengthens our foothold in the Middle East while reinforcing bi-lateral ties between Saudi Arabia and Türkiye in the pharmaceutical sector.”

Yaser Naghi, Chairman & CEO of Cigalah said: “Our strategic collaboration with Abdi Ibrahim reinforces our commitment to elevating healthcare standards across the region. By leveraging the strengths of both organizations and fostering cooperation in areas such as research and development, manufacturing, and marketing, the joint venture will facilitate market access, promote quality healthcare, stimulate economic growth, foster bilateral partnerships, and contribute to the advancement of the pharmaceutical industry in the Middle East. In the long-term, the agreement between our two organizations will also significantly boost the Kingdom’s economy by more than SAR 500 million over five years and create new employment opportunities for Saudi citizens which aligns seamlessly with the Kingdom’s 2030 Vision and its health objectives.”

Saudi Arabia boasts one of the largest healthcare markets in the region. By establishing a joint venture, Abdi Ibrahim and Cigalah Healthcare are positioning themselves to tap into the significant growth opportunities offered by the Saudi healthcare sector while providing the Saudi patient population with products, medicine and therapies that best serve their needs.

About Cigalah Healthcare

Cigalah Healthcare was established in 1987 by Mr. Yaser Naghi with headquarters in Jeddah, Saudi Arabia. The company distributes pharmaceuticals and consumer healthcare products in the Kingdom and has managed to build strong and successful business partnerships with multinational, regional, and local pharmaceuticals, and consumer healthcare companies. Cigalah Healthcare is a leading distributor of pharmaceuticals and healthcare products in the Kingdom of Saudi Arabia with sales exceeding USD 2 billion. The organization is building its vision to continue being a leading and a major force in sales and distribution of healthcare products in Saudi Arabia and other GCC markets by extending its footprint to cover the whole pharmaceutical value chain. Cigalah Healthcare’s strategy aligns seamlessly with Saudi Vision 2030 in supporting the national security of medicines and encouraging the localization of critical medicine production through its manufacturing arm ‘Alpha Pharma’. Additionally, Cigalah Healthcare supports the objective of considering Saudi Arabia as a hub in connecting continents by investing in state-of-the-art logistic facilities in Jeddah, Riyadh, Dammam, Medina, Tabuk and Khamis Mushait. In addition to Alpha Pharma, which is fully owned by Cigalah Healthcare, Cigalah Healthcare has direct investments in other local and regional pharmaceutical companies including Deef Pharma and Batterjee Pharma in Saudi Arabia, Julphar RAK in the United Arab Emirates and AUG in Egypt.

About Abdi Ibrahim

Abdi İbrahim, a Turkish pharmaceutical industry leader, has partnerships with more than 30 licensing firms across the globe, develops its own products and boasts the largest portfolio in the industry, with 250 brands and over 500 products. With its powerful vision, dynamic structure and contemporary outlook, Abdi İbrahim has held a leading position in the Turkish pharmaceutical industry since 2002. Today, Abdi İbrahim has subsidiaries operating in 17 countries outside Türkiye, exports to more than 70 countries from the European Union to Canada, North Africa to Asia, and generates the highest employment rate in the Turkish pharmaceutical industry with 5,500 qualified employees. Driven by its industry mission, social priorities, and its role as a corporate citizen, Abdi İbrahim strives for a better world and a better future, which drives the company to focus on sustainability in all its business processes.

https://www.abdiibrahim.com.tr/en

Contact
Dr. Mohamed Makram, Strategy & Operation Director, Cigalah Healthcare
Email: mmakram@cigalah.com.sa

This PRL is being issued by Hill & Knowlton Strategies on behalf of Cigalah and Abdi Ibrahim. 

For further information, please contact:
Dana Bugaighis, dana.bugaighis@hillandknowlton.com