Is Saudi Arabia Poised to Become the World’s Next Biotech Powerhouse?

Highlights

• Saudi Arabia is strategically investing in biotech and healthcare to attract international investments and diversify its economy
• Vision 2030 aims to modernise Saudi Arabia’s economy, with a focus on healthcare and life sciences

Saudi Arabia is strategically investing in its biotech and healthcare sectors while also attracting international investments. This initiative is designed to leverage the country’s strong infrastructure and aligns with the broader vision of Saudi leadership to diversify its economy and position the Gulf state as a key player across various industries beyond oil and gas.

Vision 2030 is Saudi Arabia’s strategic plan for diversifying its economy and driving modernisation. A key component of this initiative is enhancing the Kingdom’s healthcare and life sciences sectors, with 17% of the national budget dedicated to these efforts.

Since 2018, the Saudi healthcare sector has experienced substantial growth, with the overall workforce expanding by 18% through 2022, as stated in the report. The majority of these healthcare professionals are nurses and midwives.

A significant portion of the healthcare workforce in the country consists of non- Saudis, as Saudi Arabia relies heavily on foreign workers. However, this has shifted somewhat since 2018, with the government implementing a gradual “Saudization” initiative aimed at increasing the proportion of Saudi nationals in the workforce.

The National Biotechnology Strategy, introduced earlier this year, has been a key driver behind the momentum in biotech and healthcare. Its primary goals are to attract global investment, draw in top talent, and foster research and development.

This strategy will also focus on the development of research facilities, incubators, and accelerators. It will prioritise key areas such as gene therapy, personalised medicine, and biomanufacturing, with the goal of enhancing healthcare for Saudi citizens and residents, while also making significant contributions to global progress in these fields.

The Healthcare Transformation Program, a key component of the broader Vision 2030 initiative focused on healthcare and life sciences, seeks to establish a comprehensive, efficient, and integrated healthcare system. This program aims to enhance access for everyone, modernise healthcare facilities and equipment, and prioritise preventative care. As part of its digitisation efforts, the program also incorporates e-health services and data-driven solutions.

A key challenge in developing a strong biotech and life sciences industry in Saudi Arabia is the shortage of local talent, particularly in light of Saudization regulations. In recent years, the emphasis has shifted from recruiting highly- skilled expatriates to prioritising the training and upskilling of the domestic workforce.

Another challenge is securing adequate funding for the sector through government support and foreign direct investment, while also navigating regulatory and cultural obstacles.

In a statement from the Saudi government, it emphasises its commitment, stating, “The National Biotechnology Strategy is set to establish Saudi Arabia as a leading biotech hub both regionally and globally, driving significant advancements in biomanufacturing and medical innovation. This strategy represents the start of a transformative journey, not only for the Kingdom but also for the worldwide biotechnology sector.”

Damien Duhamel, Managing Partner of Eurogroup Consulting in the Middle East (part of Nextcontinent) and lead author, shared his perspective on the sector’s future: “Is Saudi Arabia on the path to becoming a global hub? Only time will reveal whether Riyadh’s biotech ambitions will materialise. However, one thing is clear: the sands are shifting, and the world is closely watching.”