RIYADH — The Local Content and Government Procurement Authority (LCGPA) has signed seven agreements to localize the pharmaceutical industry and transfer knowledge, including four agreements with Tabuk Pharmaceuticals and three with the Saudi Pharmaceutical Industries and Medical Appliances Corporation (SPIMACO).

The agreements targeted a number of pharmaceutical products such as direct inhibitors of thrombin, antibiotics, treatment of muscle contraction, anticoagulants, and immunosuppressants, among others. The agreements were signed under the auspices of Minister of Industry and Mineral Resources and LCGPA Chairman of the Board of Directors Bandar bin Ibrahim Al-Khorayef.

The authority explained that it would provide certain incentives to these products upon their localization, such as listing them on the mandatory list of national products.

LCGPA CEO Abdulrahman bin Abdullah Al-Semari noted that these agreements are a confirmation of the sustainable partnership between the public and private sectors to develop the local content. The localization of these products will add to GDP around SR500 million cumulatively over the next 10 years and with direct investments of up to SR145 million aimed at covering SR111 million of government demand annually. This will also boost local supply chains and respond to government demand quickly and in high quality, thus contributing to realizing targets of the Saudi Vision 2030.

LCGPA had previously announced opportunities to localize the pharmaceutical industry through its website, where these agreements are a result of the private sector's response to the authority’s announcement.

The agreements also constitute a continuation of several previous deals implemented by the authority to activate contracting the localization of the industry and the transfer of knowledge. This innovative method contributes to achieving the authority's strategic objectives and access to self-sufficiency in a number of priority products and sectors. — SPA