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HEALTHCARE

SAUDI’S HIGHER LIFE EXPECTANCY UNDERSCORES HEALTHCARE PROGRESS

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The world’s first series of single-port robotic liver resections from living donors was performed in April at the King Faisal Specialist Hospital and Research Center – highlighting the innovation taking place in Saudi Arabia’s healthcare sector.

King Faisal Specialist Hospital and Research Center is the most valuable healthcare brand in Saudi Arabia and the Middle East, according to Brand Finance. It ranks first in the Middle East and North Africa (MENA) region and 12th in the world in the Global Top 250 hospitals in 2026, reinforcing its position as one of MENA’s leading academic medical centres.

The hospital reflects the wider developments taking place in the kingdom’s healthcare sector, which is making a dierence in people’s quality of life.

The Health Sector Transformation Program recently announced that life expectancy in Saudi Arabia has risen from 74 years in 2016 to 79.9 years by the end of 2025 – bringing the country within reach of its Vision 2030 target of 80 years.

The research environment has also strengthened, with a 36% increase in companies sponsoring clinical trials and the number of trial sites reaching 13. This reflects the kingdom’s growing ability to attract high-quality investment and forge strong scientific partnerships both locally and internationally.

Dr. Khalid Al Shaibani, CEO of the Health Sector Transformation Program, said this rapid expansion of clinical trials underscores the country’s emergence as a regional hub for health innovation. 

PHARMACEUTICAL’S STEADY GROWTH

Localisation of pharmaceuticals, medical services, and products is a critical goal of the Saudi government.

The kingdom’s pharmaceutical market is the largest in the Middle East, with an estimated value exceeding SAR 50 billion. Between 2019 and 2024, the market grew by 41%, with the number of pharmaceutical factories reaching 58 and 176 medical device factories expanding by over 300%. This is set to grow amid the country’s rising population and economic expansion.

In January, advanced pharmaceuticals factory Bpharma was inaugurated, marking a significant advancement in the kingdom's pharmaceutical sector and supporting eorts to boost local supply chain efficiency .

The project represents a national initiative with an initial investment of over SAR 450 million, expected to exceed SAR 650 million upon the completion of its second phase, indicating strong confidence in the sector's growth.

Spanning around 38,000 square metres, the facility features full automation and advanced technologies to ensure high production eciency and strict quality controls. It includes advanced production lines for sterile products, initially capable of producing 250 million units annually, with the goal of increasing output to over 450 million units in phase two. The product range includes critical care items, specialised medicines, and ophthalmic and respiratory products.

The Ministry of Industry and Mineral Resources also inaugurated several new facilities in Jeddah Governorate, advancing the localisation of priority industries and supporting the kingdom’s health and pharmaceutical security goals.

Projects included a factory for the production of intravenous solutions, eye drops, and cardiac and emergency medications, with an annual capacity of 450 million units. The project represents an investment of SAR 650 million, with 30% of the production aimed for export.

In addition, a new production line was launched at a health consumer products facility, with an investment of SAR 60 million and an annual output of 30 million units, 85% of which will be exported to countries in the GCC, East Asia, and North Africa. 

ADVANCING BIOPHARMACEUTICAL MANUFACTURING

Last year, NEOM, the mega development on the Red Sea, entered into a strategic memorandum of understanding with WuXi AppTec, which specialises in contract research, development, and manufacturing services for the pharmaceutical industry.

Under the agreement, both parties will work together to assess opportunities to localise pharmaceutical research, development, and manufacturing capabilities within Saudi Arabia. Over the longer term, the partnership aims to establish a world-class contract development and manufacturing facility, either within Oxagan – NEOM’s hub for clean and advanced industries – or at other locations across the kingdom.

The MoU marks a meaningful step toward advancing the kingdom’s ambitions in the biotechnology sector and supports sustainable growth across the pharmaceutical and healthcare industries.

More broadly, the collaboration brings together global technical expertise and Saudi Arabia’s industrial strategy to help build an advanced biopharmaceutical manufacturing ecosystem.

The Saudi Food and Drug Authority (SFDA) also launched an artificial intelligence (AI)-powered model last year for predicting drug shortages in the country. The launch highlights the government’s commitment to ensure a steady supply chain for key medicines and proactively address any potential looming shortages.

The AI model relies on advanced algorithms to continuously analyse historical data for each drug, generating accurate predictions that facilitate immediate decision-making to prevent any potential shortages. The initiative represents a transformative leap in the national drug security system, contributing to increased eciency in supply-chain management and ensuring that medications reach patients in a timely manner.

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ECONOMY

Major indicators including business sentiment, foreign direct investment, and employment have been favourable, fuelling optimism for the country.  

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MANUFACTURING

Foreign investors are transforming the investment landscape in the country’s manufacturing industry, even benefiting SME players.

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REAL ESTATE

Expanding the pool of eligible buyers will increase demand for properties across the country’s major cities, especially in urban districts.

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US-SAUDI TRADE

The nations are focusing on a more integrated economic engagement involving sectors like energy, technology, healthcare, aerospace, and infrastructure.

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