Despite a young and relatively healthy population, the Saudi government plans to inject more than $72 billion into the kingdom's health care sector by 2030, as well as introduce a raft of reforms and procedures that will attract greater private sector participation. The government is determined to create one of the finest health care systems in the world — one capable of providing first-rate care to people of all ages and backgrounds, whether they are newborns, children, adults or pensioners.

With nearly 300 hospitals and around 2,400 primary health care centers and clinics, the system is already in great shape, but there is always room for improvement — and major capital expenditure and investment in human resources is about to lift the kingdom's health care provision to a whole new level. Progress over the past few decades has been impressive and the prognosis is even more positive, given the huge investment program now underway. Official data shows there are now 2.2 hospital beds for every 1,000 people, while life expectancy has jumped from 66 years to 74 years in the last 30 years. As the Saudi Vision 2030 plan pledges: "We are determined to optimize and better utilize the capacity of our hospitals and health care centers, and enhance the quality of our preventive and therapeutic health care services."

An infusion of technology is set to play a huge role in the development of a modern health care industry. Just a few of the things the kingdom will be investing in include "machine-to-machine talking, telemedicine, advanced mobile applications and the automation of batch processing in laboratories, which will yield faster and more accurate results," says Dr. Haitham Al Falah, CEO of King Saud Medical City (KSMC). And new, technology-led analytics will allow people requiring treatment to make an informed choice as to which location they wish to be seen in, with health care providers being assessed on aspects such as quality, efficiency, productivity and speed of decision-making.

KSMC in Riyadh is one of the biggest players in the Saudi Arabian health industry and is heavily involved in the transformation of the system that is taking place as part of Saudi Vision 2030. The award-winning, internationally recognized center for training in medicine and surgery was the first, and is now the largest, hospital in the country. It has 1,500 beds, of which 180 are reserved for the intensive care unit, and currently cares for 1 million patients every year. And the modern facility is at the forefront of the future of Saudi Arabia's health care industry. That future involves the private sector. Public-private partnerships (PPPs) are a good model for facing the challenges of the kingdom's 21st-century health sector, Al Falah believes, adding that his organization "is looking to be in the first wave of creating this PPP program.

"KSMC has compiled ambitious plans for a series of infrastructure modernizations and for expansion," he states. "These plans look more achievable today through non-conventional methods — via good partnerships with private sector companies for building and for providing services to the community."

Japanese firms sought to show the way

Major development plans like those of KSMC are precisely the sort of projects for which Japanese technology is highly sought, while doctors and consultants from Japan are also on the government's radar as they look to raise standards across the health care service spectrum. The government's ultimate aim is to become a regional health care hub and it has created a favorable climate for local and foreign investors to help achieve this. Its focus is on attracting Japanese entities, in particular, to the Saudi Arabian health care sector, as it recognizes that Japan is a leading provider of health care systems, with its people enjoying an enviable life span, exceptional health care and cutting-edge medical devices and technologies. Under the Saudi-Japan Vision 2030 initiative, the two countries will collaborate in areas such as research and medical training, exchange of experts, and exchange of knowledge and experience in various health care fields. The alliance will also see Saudi Arabia's Ministry of Health working closely with Japan's Ministry of Health, Labor and Welfare.

KSMC "views the Saudi-Japan partnership, in the context of Saudi Vision 2030 and the Ministry of Health's strategy, as fundamental," says Al Falah. His organization has pledged to raise the standard and expand the scope of health care in the kingdom and he is, therefore, "hopeful and extremely keen that KSMC's development projects will involve Japanese companies, experts and technology." Implementing state-of-the-art technology is important, according to Al Falah, because "there is a great opportunity for us to face the increasing demand in patient services by approaching them in both conventional and non-conventional ways.

"We believe that technology is our tool in moving toward a digitalization and innovation-enabling environment, and bridging the gap in human service," he explains. He also sees transfer of knowledge as one of the key solutions to the issues KSMC faces. "We are looking to train medical staff in highly specialized fields within Japanese institutes. "And the presence of Japan's expertise in Saudi Arabia would enrich medical research. So we are looking for opportunities to transfer knowledge about Japanese methodologies for research and development to the kingdom. We would also like to augment our research center with Japanese expertise and use the opportunity of this exposure to address the big variety of pathologies that are treated at KSMC," says Al Falah.



Localizing pharmaceuticals is vital

Meanwhile, the kingdom is also working hard to persuade major pharmaceutical companies to establish manufacturing operations in the country. International businesses are responding. U.S.-based Pfizer, for example, received a trading investment license for its subsidiary, Pfizer Saudi, from the Saudi Arabian General Investment Authority (SAGIA) last summer. SAGIA describes the company's new $50 million plant as a concrete example of its contribution to the expansion of a localized pharmaceutical industry.

"The localization of the pharmaceutical industry is very important to ensure the availability of treatment at all times, to help us achieve health objectives in the medium and long run, and to create quality jobs for Saudis," comments Minister of Health, Tawfiq bin Fawzan Al Rabiah. Meanwhile, a spokesperson for SAGIA notes that the setting up of the Pfizer plant was "the result of our ongoing and effective PPP approach, which is driving towards achieving the development goals of the kingdom, crystallized by Saudi Vision 2030."

The Saudi pharmaceutical industry has made great strides in recent years, but one company has more reason than most to be proud of the sector's impressive success and progress, amid strong international competition: the Tamer Group. Now in its 95th year, the Tamer Group started life as just one pharmacy and has grown to become Saudi Arabia's leading supplier of pharmaceuticals, including ethically branded, over-the-counter and generic products. It is also a major distributor of medical equipment and supplies, as well as operating in the beauty care and fast-moving consumer goods markets.

Serving the growing needs of, not just Saudi Arabia, but other Middle Eastern countries as well, the group's core activities are manufacturing, importing, distribution, promotion, marketing and third-party logistics services. The diverse group has witnessed many major industry milestones in the past couple of decades and is confident many more are on the horizon, thanks to the integrated development strategies featured in Saudi Vision 2030 and the National Transformation Program 2020.

It has an outstanding reputation and track record of firsts: including being the first pharmacy in the country and the first firm to receive the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) certification — for its semi-automated logistics distribution center in Jeddah.

"Our multi-storage facility at Jeddah handles all of our products — pharmaceutical, medical, food, beauty and prestige — for distribution to pharmacies, hospitals, polyclinics, supermarkets, wholesalers, shops, perfumery chains and boutiques," explains Chairman and Managing Partner of Tamer Group, Ayman M. Tamer.



Manufacturing with Japanese partners

The firm was also the pioneer for pharmaceutical partnerships and industry joint ventures with Japanese enterprises, through the creation of a successful manufacturing player called Saudi Arabian Japanese Pharmaceutical Company (SAJA).

Since its inception in 1995, SAJA partners Astellas and Daiichi Sankyo, two of the top three pharmaceutical companies in Japan, have invested millions of dollars and brought the latest technology and research into the kingdom, and it now serves countless customers in the Middle East and North Africa (MENA) with its high-quality products.

The joint venture recently completed the strategic expansion of its plant, in order to leverage its capabilities in pharmaceutical production. It has also extended its secondary and primary packaging facilities, making it the ideal partner for industry players needing the option of local manufacturing in Saudi Arabia.

Having experienced the increasing success of SAJA in pharmaceuticals, the Tamer Group would be very open to similar partnerships with Japanese companies in the other markets it is active in.

In addition to its SAJA venture, the Tamer Group also works with many of the world's other leading companies, through agreements, partnerships and joint ventures. And it is now seeking new opportunities through its Japanese counterparts, as it boasts significant opportunities in licensing, generics and patented drugs, due to the strong fundamental drivers for pharmaceuticals in MENA.

With its experienced government liaison staff, the Tamer Group can also act as an effective link between its partners and Saudi Arabian institutions. Which means it can help ensure fast registration of companies and products, and manage tenders.



Creating a future workforce

The Tamer Group views the training of the Saudi Arabian population as vital for the country's future development. Over five years ago, it founded the Tamer Academy, with the objective of increasing the success rate of Saudi Arabians joining the workforce.

"Our key observation was that academia is producing graduates with talents, but not necessarily the ability to obtain and retain jobs. Specialization in every industry is required.

"The private sector has to partner with the public sector to fill that gap and ensure that Saudis are enabled to gain and retain their job opportunities in the coming years," says Tamer. Additionally, the Tamer Group was "one of the pioneers in empowering women to join the workforce. Currently we have more than 100 female employees and we plan to increase this to 300 female employees within the next five years," he adds.

In recognition of his excellent track record, and the potential benefit of utilizing his talent and experience for the private sector's prospects, Tamer was chosen by the government to represent the private sector on its Job Creation and Employment Committee, which is overseen by the Ministry of Economy and Planning.

That department has been tasked with creating 500,000 new jobs by 2020, and 2.4 million by 2030 — challenging targets that should also help achieve another important aim — to reduce the national unemployment rate from 12 percent to 7 percent by 2030.



Updating for Vision 2030

"Saudi Arabia is moving in the right direction with Saudi Vision 2030 and its objectives will be reflected in the Tamer Group's business and future plans. We are working closely with the government to update our internal initiatives to match the country's goals," Tamer states.

He believes that, with the adoption of Saudi Vision 2030, "We are witnessing a major initiative that will improve the future opportunities and security for our next generations, and which will put the kingdom on the front line with the leading economies in the world."

The Tamer Group's head also has a special message for his associates in SAJA from Japan: "I wish to thank our Japanese partners for the trust they bestowed on us," he says, "joining leading Japanese organizations in a joint venture was a milestone in the history of our group.

"The dream of the late Dr. Mohammed Said Tamer, my grandfather, who established the first pharmacy in the kingdom in 1922, was to establish manufacturing facilities producing medicine in the kingdom. I'm proud to say his dream has become a reality for the Tamer Group."