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Health and medical to Saudi Arabia

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(Last updated: 19 Jul 2007)

Trends and opportunities

The market

The current status of the health services in Saudi Arabia is positive regarding the medical care supplied to citizens. The situation has changed from moderate figures in capabilities, equipment and facilities to major improvements in health resources, healthcare budgets, preventive and curative health services, pharmaceutical services, and primary care and vaccine programs.


Saudi Arabia has modern equipment and facilities, which are staffed by internationally recognised consultants. The majority of surgeons are well trained and want to use the best equipment available. Most are expatriates and are familiar with Western practices and standards.


There are more than 60,000 nursing staff, 5000 pharmacists and 12,000 employees in para-medical categories. 


The leading hospitals in Saudi Arabia’s three major cities have departments for open heart surgery operations, ear surgery, acute head and spinal trauma, paediatric neuro-surgery including brain tumours, hydrocephalus, congenital abnormalities, transphenoidal, pituitary surgery, stereotactic surgery, microsurgery, laser and endoscopic surgery.


Care for the handicapped is becoming more prominent in Saudi Arabia. On the initiative of the Saudi Arabian Benevolent Association for Disabled Children, two multi-million dollar centres for handicapped children have opened in the cities of Makkah and Jeddah. 


Statistical figures indicate a percentage increase in specialisation of general medicine (19.1 per cent), dentistry (14.8 per cent), gynaecology (9.3 per cent), paediatrics (9.6 per cent), and internal medicine (5.7 per cent). The demand of herbal medicine is also increasing rapidly.

Opportunities

The Saudi Government has been keen on encouraging and expanding health services in the private sector. Presently, private health facilities deliver their services through coordination and integration with the healthcare system of Saudi Arabia.


Within government trends towards the development of the private sector, soft loans have been granted for the construction of private hospitals and multi-disciplined health facilities, in addition to the management and operation of these facilities.


The private sector has also been given the opportunity to provide maintenance facilities and services and support the medicine protection industry. Details on projects - from constructing new hospitals and care centres to equipping and managing them to local manufacturing of medicine both original label and generic - can be obtained from Austrade Riyadh.


Australia is currently represented in Saudi Arabia’s health and medical products sector through active and well-reputed companies. Some of the best opportunities for Australian companies, in meeting the main health objectives in Saudi Arabia include:

  • Expanding preventive health programs through development of existing preventive units and creating new units including health offices, maternity and child care units and healthcare centres. This also includes expansion of vaccination and immunisation programs against epidemic and communicable diseases, environment health, health education/training, and early detection of diseases and protection against exotic diseases.
  • Expanding primary healthcare coverage through the establishment of healthcare centres of various levels and categories to meet the different health needs of the communities they serve in desert areas, villages and cities. 
  • Conducting studies and research on health, environmental, epidemic, and nutritional problems.
  • Increasing bed capacity of hospitals through construction of new hospitals or the expansion, development and maintenance of existing facilities to improve their efficiency.
  • Increasing and improving specialised medical services in all central hospitals in cities, in addition to expanding and upgrading technical sections to current scientific and technological standards and levels.
  • Improving and spreading emergency services.
  • Upgrading and improving efficiency of engineering and maintenance services, support services and medical catering and supply at central level, in addition to the establishment of units to provide these services in every health department.
  • Management and rationalisation of medicine and medical supply utilisation, and encouraging the establishment of pharmacies throughout Saudi Arabia so that patients can have easy access to medicine at all times.
  • Increasing medical and healthcare workforce either through available national labour or from overseas.
  • Preparation and implementation of Family Health Record Project, so that each member of the family can have a health card that includes data of all their health developments during their life, and to guarantee the highest level of preventive and curative services.
  • Using the services of companies specialised in cleaning and catering to serve health units and centres, thus preventing the effort and time of technical staff and achieving the goal of maintaining a high level of healthcare services.

Competitive environment

The degree of competition in Saudi Arabia is very high. USA, UK, Switzerland, Germany, Japan and Belgium are the major competing countries along with low cost Egyptian, Jordanian, and the local products.


There are approximately 200 pharmaceutical companies in Saudi Arabia registered with the Ministry of Health – the market is largely dominated by European suppliers, and over 40 agents in Saudi Arabia, which import medicines from international pharmaceutical companies.

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Tariffs, regulations and customs

Medical equipment is charged at seven per cent custom duty while some pharmaceutical products are exempted from all customs duties and others are charged five and 12 per cent. However, Saudi Arabia is expected to comply with the GCC standards of implementing five per cent tariff across the board.


The new Foreign Investment Law allows non-Saudi's to establish and operate their business in Saudi Arabia, given it was approved to do so by the General Investment Authority (SAGIA). However, certain industrial and service sectors are excluded from this law, and interested parties will have to get a local sponsor in order to operate in Saudi Arabia.


Retail pharmacies, maternity, physical therapy, and services of paramedical personnel (internationally classified under No 93191) are excluded from the Foreign Investment Law.

Industry standards

Conditions for registration of pharmaceutical companies and their subsidiaries are as follows. The company’s agent in Saudi Arabia is required to submit the registration file including the following documents:

  • Authenticated copy of the Agency Registration Certificate at the Saudi Ministry of Commerce


  • A copy of the license for pharmaceutical wholesale trade


  • A completed registration application form


  • A certificate issued by the Health Authorities in the country of origin, clearly indicating the following:
    • That the company is authorised to manufacture pharmaceutical products in the country of origin (indicate license number and date)
    • That the company follows Good Manufacturing Practice
    • That the product intended for export to Saudi Arabia will be identical in their composition as those registered and marketed in the country of origin

  • Certificate from the company authenticated by the relevant authorities in the country of origin showing in tabular form the following information about the company’s products:
    • The trade/or the generic name of the product
    • Composition (active ingredients and their quantities)
    • Therapeutic category/categories
    • Registration number and date in the country of origin
    • Date of first marketing in the country of origin
    • Names of other countries in which the product is registered and marketed

Many other detailed conditions are also strictly required such as research, pricing, labelling and packaging.

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Marketing your products and services

Market entry

The most effective way for Australian suppliers to enter the Saudi market is to establish a business relationship and conduct their activities through an authorised Saudi representative, agent or joint venture partner. By doing this, all trade activities can be easily conducted and secured legally and smoothly for governmental and private projects.


Australian exporters should be aware that in Saudi Arabia all wholesale and retail trade is reserved exclusively for Saudi nationals and entities wholly owned (100 per cent) by Saudi nationals. Although, an Australian exporter can sell products in Saudi Arabia to an end user through direct offshore sales - requiring the Australian company only to ship goods to a Saudi port of entry. Otherwise all sales must be made via a Saudi commercial agent.


The government allows 100 per cent equity investment in Saudi Arabia. Generally, joint venture companies are managed by the foreign principal, which provides management, marketing and technical expertise, and submit bids for government or private sector tenders. 


To obtain a contract with the Saudi Government, foreign companies are required by regulation to appoint a Saudi service agent unless they have established a company in Saudi Arabia. Primary functions of a service agent are to obtain temporary commercial registration and assist in routine tasks, particularly obtaining visas for expatriate employees.

 

No medicine can be distributed in Saudi Arabia until it is registered with the Ministry of Health through a local agent/distributor.

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Links and industry contacts

Health and medical–related resources

Ministry of Health – www.moh.gov.sa
National Guard Health Affairs – www.ngha.med.sa
King Faisal Specialist Hospital & Research Centre – www.kfshrc.edu.sa

Government, business and trade resources for Saudi Arabia

Saudi Arabian Standards Organization – www.saso.org.sa
Trade Arabia – www.tradearabia.com

Media

Arab News – www.arabnews.com
Middle East Economic Digest (MEED) – www.meed.com
The Saudi Times – www.sauditimes.com

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Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

  • Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
  • Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
  • Administers the Export Market Development Grants scheme.
  • Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
  • Provides advice to the Australian Government on its trade and investment development activities.
  • Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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