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
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Updated 26 August 2024
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Saudi Arabia’s pharma, medical device factories surge to 206 with $2.6bn investments

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.


Saudi Arabia sets global benchmark in AI modernization

Updated 53 min 26 sec ago
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Saudi Arabia sets global benchmark in AI modernization

  • Executives hail the Kingdom’s robust infrastructure and strategic workforce programs

RIYADH: Saudi Arabia is emerging as a global leader in artificial intelligence, according to executives from OpenText, one of the world’s largest enterprise information management companies. 

With 22 years of international AI experience, Harald Adams, OpenText’s senior vice president of sales for international markets, said the Kingdom’s modernization efforts are now setting a global standard.

“From my perspective, Saudi Arabia is not only leading the modernization towards artificial intelligence in the Middle East, I think it is even not leading it only in the MENA region. I think it is leading it globally,” Adams told Arab News.

In an interview, Adams and George Schembri, vice president and general manager for the Middle East at OpenText, discussed the Kingdom’s significant investments in AI during the inauguration of OpenText’s new regional headquarters in Riyadh.

“So for us (OpenText), from our perspective, it was a strategic decision to move our MENA headquarters to Saudi Arabia because we believe that we will see here a lot of innovation coming out of the country, we can replicate not only to the MENA region, maybe even further to the global level,” Adams said.

The new headquarters, located in the King Abdullah Financial District, will serve as a central hub for OpenText customers and partners across the Middle East. Its opening reflects a broader trend of tech giants relocating to Riyadh, signaling the Kingdom’s rise as a hub for global AI innovation.

Adams attributed Saudi Arabia’s lead in AI modernization to a combination of substantial financial backing, a unified national strategy, and a remarkable pace of execution.

“I mean, a couple of things, because the ingredients in Saudi Arabia are of course, quite interesting. On the one hand side, Saudi Arabia has deep pockets and great ambitions. And they are, I mean, and they are executing fast, yeah,” he said.
“So from that perspective, at the moment, what we see is that there are, especially on the government side, I can’t see any other government organizations globally moving faster into that direction than it is happening in Saudi Arabia. Not in the region, not even on a global level, they are leading the game,” he underlined.

Schembri added, “Saudi’s AI vision is one of the most ambitious in the world, and AI on a national scale is not good without trusted, secured, and governed, and this is where OpenText helps to enable the Saudi organizations to be able to deliver on the 2030 Vision.”

“The Kingdom’s focus on AI and digital transformation creates a powerful opportunity for organizations to unlock value from their information,” Schembri stated.
“With OpenText on the ground in Riyadh, our customers gain direct access to trusted global expertise combined with local insight — enabling them to manage information securely, scale AI with confidence, and compete on a global stage,” he added.

DID YOU KNOW?

• Saudi Arabia ranks 5th globally and 1st in the region for AI growth under the 2025 Global AI Index.

• The Kingdom is also 3rd globally in advanced AI model development, trailing only the US and China.

• AI is projected to contribute $235.2 billion — or 12.4 percent — to Saudi Arabia’s GDP by 2030.

The inauguration of OpenText’s new regional headquarters was attended by Canada’s Minister of International Trade and Economic Development, Maninder Sidhu, and Jean-Philippe Linteau, Canada’s ambassador to Saudi Arabia. 

Sidhu emphasized the alignment of Saudi Vision 2030 with Canada’s economic and innovation goals.

“His Highness (Crown Prince Mohammed bin Salman) and Vision 2030, there is a lot of alignment with Canada, as you know, with the economic collaboration, with his vision around mining, around education, tourism, healthcare, you look at AI and tech, there’s a lot of alignment here at OpenText Grand opening their regional headquarters,” Sidhu told Arab News.

Saudi Arabia’s AI ambitions are projected to contribute $235.2 billion — or 12.4 percent — to its GDP by 2030, according to PwC. The Saudi Data and AI Authority, established by a royal decree in 2019, drives the Kingdom’s national data and AI strategy.

One flagship initiative, Humain, chaired by Crown Prince Mohammed bin Salman, was launched in May 2025 under the Public Investment Fund. It aims to build a full AI stack — from data centers and cloud infrastructure to models and applications — positioning Saudi Arabia as a globally competitive AI hub. The project plans to establish a data center capacity of 1.8 GW by 2030 and 100 GW of AI compute capacity by 2026.

Saudi Arabia is also expanding international partnerships. In May 2025, Humain signed a $5 billion agreement with Amazon Web Services to accelerate AI adoption domestically and globally, focusing on infrastructure, services, and talent development.

The Kingdom ranked fifth globally and first in the Arab region for AI sector growth under the 2025 Global AI Index, and third worldwide in advanced AI model development, behind only the US and China, according to the Stanford University AI Index 2025.

Education is another pillar of Saudi AI strategy. Starting in the 2025-26 academic year, AI will be taught as a core subject across all public school grades, reaching roughly 6.7 million students. The curriculum will cover algorithmic thinking, data literacy, and AI ethics.

OpenText executives emphasized their commitment to supporting Vision 2030 and the national AI strategy through workforce development.

“OpenText has put a lot of investment in the Kingdom, right. We brought cloud to the Kingdom, we’ve opened our headquarters in the Kingdom, we’ve basically hiring Saudis in the Kingdom, We basically building, if you like, an ecosystem to support the Kingdom. And on top of that, what we’re doing is we’re putting a plan together, if you like, a program to look at how we can educate, if you like, the students at universities,” Schembri said.
“So this is something that we are looking into, we are basically investigating and to see how we can support the Saudi nationals when they come into the workplace. And I’m really excited. I have Harry who is, our leadership who’s supporting this program.”
“It’s something that we are putting together. It’ll take some effort. So it’s still in play because we want to make sure what we put it basically delivers on what we're trying to achieve based on the vision of Saudi,” he added.

“The younger generation is sooner or later either working for us or maybe for a partner or for maybe for a customer. So that’s why we are to 100 percent committed to enable all of that,” Adams said.