According to the Saudi Press Agency, the Local Content and Government Procurement Authority signed four deals for the localization of industry and knowledge transfer on Monday.
The authority said, “Deals are based on the principle of cooperation and integration to enhance health and pharmaceutical security and development in Saudi Arabia”.
The authority reached agreements with Saudi-based Jamjoom Pharma and American company MSD for the production of sitagliptin phosphate- a drug for the treatment of type 2 diabetes. Further, Aja Pharma in Hail and Saudi-Japanese business SAJA Pharmaceutical Co. in Jeddah also reached agreements concerning the manufacture of antiplatelet medication ticagrelor.
The financial impact of localizing pharmaceutical products exceeds SR250 million ($67 million) over 10 years for each agreement.
Abdulrahman Al-Samari, the CEO of the authority, explained that these agreements reaffirm the sustainable partnership between the government and private sectors for the development of local contact as reported by SPA.
The CEO also affirmed the authority’s efforts to establish new industries, improve product supply chains, and achieve self-sufficiency in the Kingdom.
In October 2023, the authority also entered into two memorandums-of-understanding with other entities including the Saudi Export Development Authority and the Local Content and Government Procurement Authority, aimed at developing local content in all its components within the Saudi economy.
The MODON-LCGPA MoU aims to integrate industrial cities, boost local content, and promote innovation. The agreement also includes incentive programs for industrial partners and localization agreements to transfer knowledge.
As local content is crucial for non-oil sectors and GDP growth, focus is directed at improving government procurement processes and ensuring alignment with national visions and strategies to achieve development and financial goals.
Arab News
