Saudi Arabia’s government aims to transform the Kingdom into a biotech centre by 2040, aligned with its long-term development blueprint, Vision 2030. The global biotech market has grown considerably due to the potential to transform human health and enhance operations across health, agriculture and chemicals.
Policy & Investment
In 2024 the National Biotech Strategy (NBS) was launched to spur the rollout of health care reforms and initiatives in support of the segment. It highlights four pillars for sectoral development: vaccines, biomanufacturing, genomics and plant optimisation. The government aims to develop a domestic biomanufacturing industry, nurture vaccine self-sufficiency and integrate genomics into health care to improve health, enhance food production, protect the environment, transform industries and drive diversified economic growth.
The NBS aligns with goals outlined in Vision 2030, including easing access to health care services, developing domestic manufacturing industries and strengthening prevention against health threats. The goal is to establish Saudi Arabia as the leading biotech centre in the MENA region by 2030 – and globally by 2040. The segment is expected to add $34.6bn to non-oil GDP by 2040, 3% of the total, while providing 11,000 jobs by 2030 and 55,000 by 2040.
To achieve the aims set out in the NBS, the government highlights the importance of attracting skilled biotech professionals, developing cutting-edge infrastructure, addressing any deficiencies in research and manufacturing, improving the biotech regulatory framework and cultivating a strong funding ecosystem. The government is encouraging ministries and authorities in the space to collaborate and develop investment incentives to attract private funding to the biotech sector. These include expedited import permits, single-window business establishment procedures, streamlined hiring and tax privileges. As the industry is in the nascent stage, many of these incentives are still under development. To boost its appeal regionally and globally, Saudi Arabia plans to develop a biotech sector that offers competitive incentives to attract foreign talent and encourage companies to establish operations locally. While the government has invested heavily in the sector, it seeks to welcome higher levels of private investment to develop a diverse biotech industry. The establishment of special economic zones could further support these aims.
Research & Development
No country in the Middle East region has yet established itself as a leading biotech centre, creating significant room for growth and innovation in the space. The government has already highlighted several areas of the Kingdom suitable for developing biotech capabilities, including Riyadh, the western coast near the King Abdullah University of Science and Technology (KAUST) and the city of NEOM, which is under development.
In line with Vision 2030, the Saudi government has made a substantial commitment in the development of top-tier universities, research centres and health care institutions, recognising their critical role in advancing the country’s knowledge-based economy. These are expected to play a leading role in the deployment of the NBS. High levels of investment in KAUST, King Abdulaziz City for Science and Technology, King Abdullah International Medical Research Centre, King Faisal Specialist Hospital and Research Centre, and King Saud University has provided key infrastructure, such as state-of-the-art labs, which will support research and development (R&D) aims.
The government contributes significant funding to R&D, earmarking $3.9bn to the sector in 2021. Within biotech, however, universities have invested mainly in basic research. Greater investment is required from both public and private sources to deliver marketable products and support the economic growth of the segment. In addition, higher levels of investment in the development of strong digital infrastructure, such as cybersecurity, advanced artificial intelligence, analytics and robotics, are anticipated to make the sector more competitive globally.
The leading research institutions are expected to train the next generation of Saudi students to work in health care and biotech, converging with Vision 2030’s aim to develop a knowledge-based economy. Recent reforms to the education sector are also expected to help attract greater numbers of talented international students to study and conduct research at these institutions. Saudi Arabia is already home to high student enrolment levels in medicine, with many going on to work in the health care sector. Nonetheless, there is a limited focus on the proficiencies needed to work in highly skilled biotech jobs; sustaining biotech expansion may require adjustments to existing curricula and the introduction of new courses to close the skills gap.
The passing of a law allowing foreign universities to open branches in Saudi Arabia is expected to increase private participation in higher education. The establishment of specialist international institutions could help encourage greater collaboration between public and private universities and research centres, further supporting student skills development.
Room For Growth
Saudi Arabia’s strong financial standing provides it with opportunities to support the development of small biotech companies. Financing promising biotech start-ups at the international level could help accelerate sector development. This aligns with Vision 2030 goals to invest in small and medium-sized enterprises, and encourage greater entrepreneurship among young people. Also in line with Vision 2030, the Social Development Bank is set to support the creation of over 70,000 small enterprises by 2030 as part of efforts to aid the growth of Saudi Arabia’s non-oil economy and support economic diversification aims. Some incubators have already emerged in the biotech space, supported by public funding. These include Dammam Valley, which was established in 2021 by Imam Abdulrahman bin Faisal University. The initiative aims to incubate start-ups in the biotech, agriculture, medical, industrial and health care sectors.
Biotech Focus
Saudi Arabia has been developing its biotech capabilities, and the NBS is expected to spur further sectoral growth – particularly as new private companies enter the market. At present, Saudi Arabia contributes 0.2% of the global genomics sector. The projected compound annual growth rate for the genomics sector across the MENA region from 2022 to 2030 is 9.5%, lower than the global forecast of 16.5%. There is considerable opportunity for growth in the genomics sector, particularly as Saudi Arabia has been developing a designated programme in recent years. In 2018 the government launched the Saudi Genome Programme, aimed at the development of a database to capture the genetic blueprint of Saudi Arabia’s population, and thereafter to provide personalised medicine options to reduce health care costs and improve quality of life. The government hopes the database will enhance preventative health care and reduce the occurrence of genetic diseases. To ensure that Saudi Arabia is at the forefront of biotech development, the government holds the annual Riyadh Global Medical Biotechnology Summit (RGMBS), welcoming leading international experts to discuss innovation in biotech.
The goals of RGMBS, promoting Saudi Arabia as a biotech centre on the global stage, are to facilitate partnerships and collaboration between global biotech firms, research institutions and health care providers; identify and discuss strategies for leveraging biotech; attract investment from venture capitalists, government bodies and the private sector; engage policymakers and industry leaders about regulatory frameworks, ethical considerations and policy recommendations; create international biotech networks; and showcase advancement and opportunities in the Middle East.
There has been significant progress in the biotech sector. The establishment of a strong research base, led by several public universities in the Kingdom, is expected to accelerate the implementation of the NBS. Meanwhile, tertiary institutions could educate the next generation of biotech experts if the curriculum evolves in line with the needs of the segment in the coming years. In addition, the launch of several private universities and educational institutions will promote greater public-private sector collaboration in R&D.
Continuing to establish Saudi Arabia as an attractive investment environment and encouraging greater private engagement in the biotech sector could help to facilitate the successful rollout of the NBS. The creation of free zones and other financial incentives for companies entering the market could also boost segment growth. There is significant room for sectoral development in the Middle East, with the region still working to secure a strong biotech reputation. This means Saudi Arabia could rapidly become the region’s primary biotech centre if it can successfully implement the NBS while also encouraging greater public-private collaboration to unlock growth potential in the space.
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