Saudi Arabia is poised to take the lead in the biotech revolution, boosting both its economy and healthcare sector, according to a report by Strategy& Middle East. The report highlights the potential for Saudi Arabia to become a world-leading hub for biotech research, development, and pharmaceutical manufacturing, which would drive economic diversity in the country and address national healthcare and food security issues.
The analysis comes at a time when the pharmaceutical and life sciences sector in the United States is experiencing significant merger and acquisition activity, with predictions that it could reach $225 billion to $275 billion by 2023. In Saudi Arabia, total research and development (R&D) investments have already reached $3.9 billion since 2021, including substantial investments in flagship biotech R&D institutions and targeted regulatory frameworks. With state-of-the-art laboratories and innovative initiatives like the Saudi human genome program and the Saudi network for clinical trials, the country is well-positioned to develop a leading biotech cluster over the next decade.
Dr. Walid Tohme, a partner with Strategy& Middle East, highlighted the significant benefits that a thriving biotech sector could bring to Saudi Arabia in terms of health, social, and economic impacts. He emphasized that biotechnologies have the potential to revolutionize not only the national non-oil economy but also other industries such as chemicals, agriculture, food security, and human health.
The scale of investment and regulatory development already implemented in Saudi Arabia has helped streamline the country’s capacity for trials, testing, and bioethics. Additionally, the nation’s educational ecosystem is ahead of the curve in terms of preparing the talent pipeline needed for the biotech sector.
To sustain the growth of biotechnology in the country, the report outlines four key enablers that policymakers and the private sector can utilize:
1. Invest more public and private funding in commercialization: The report emphasizes the importance of patient capital investment in driving innovation in the biotech sector. While Saudi Arabia has already invested $3.9 billion since 2021, there is a need for increased private venture funding to support the development of a vibrant biotech ecosystem.
2. Expand human capital and the talent pipeline: The analysis reveals that advanced degrees are required for nearly half of the entry-level jobs in the biosciences field in Saudi Arabia, highlighting the need for substantial investments in promoting world-class education, especially in science, technology, engineering, and math (STEM).
3. Develop state-of-the-art infrastructure: The biotech sector also requires enhanced digital infrastructure, including internal networks, cloud computing, cybersecurity, advanced AI, analytics, and robotics. By leveraging infrastructure investments at institutes like King Abdullah Economic City and KSU, centralized bodies such as the Research, Development, and Innovation Authority and the Saudi National Institute of Health can form a collaborative network to maximize utilization.
4. Create a strong framework of regulation and incentives: The report emphasizes the importance of proactive, innovation-led regulation to attract investments, protect patients, and safeguard intellectual property. Saudi Arabia should provide incentives comparable to other global biotechnology hubs, which may include expedited import permits, streamlined business establishment procedures, simplified hiring processes, and tax privileges.
By implementing these four enablers, Saudi Arabia can establish itself as a leading biotech industry, fostering economic diversification, creating skilled jobs, and reaping a multitude of health, social, and economic benefits. The country’s emphasis on biotech infrastructures, such as NEOM and clusters in Riyadh, combined with its investment strategies and regulatory framework, positions it for success in the biotech revolution.
In conclusion, Saudi Arabia has the potential to become a world-leading hub for biotech research, development, and pharmaceutical manufacturing. By prioritizing the four enablers identified in the Strategy& report, the country can cultivate a robust biotech industry with wide-ranging benefits. With its investments, infrastructure, and regulatory framework, Saudi Arabia is well on its way to driving economic diversity, addressing healthcare and food security issues, and revolutionizing various industries through the power of biotechnology.
