RECENT reports have confirmed that Saudi Arabia's healthcare budget for 2013 is $27.4 billion and is expected to increase to $47.7 billion by 2017. This increased budget has been attributed to the significant shortage of beds in the Kingdom. Which is why the Ministry of Health is currently increasing total bed capacity of the country's healthcare system by 44,000 beds, expected to be completed by 2015. Ministry's vision is to develop patient centric system that will place patient's wellbeing and experience in the center of each healthcare provider's approach. To achieve this Kingdom will need to rely on the innovative medical solutions and the latest technological developments, for what they are pursuing new partnerships with international solution providers. As a result, accessing the Saudi market has become significantly easier for international companies. How to provide the best level of care to the people of Saudi Arabia is in the core of discussions at the upcoming 3rd Patient Relations Symposium on Dec. 9-10 in Riyadh. More than 200 of the Kingdom's healthcare decision makers, together with major medical distributors, are gathering to discuss future sector strategies and goals and to source the new medicines and equipment for their current and future projects. Mohammed Al Amri, Symposium's Project Director, said the most efficient ways for foreign companies to access Saudi healthcare market: “The two most common ways to penetrate the market and conduct business within the healthcare sector in Saudi Arabia are a partnership with local distributors and strategic joint venture partnerships. Although several distributors operate only in the specific regions, most operate throughout the country with a base either in Riyadh or Jeddah. Distributors play a major role in registration of products, acquiring contracts, introducing new products, supply, distribution and logistics of healthcare in Saudi Arabia. Large distributors are also involved in after sales service and maintenance. Medical device manufacturers, pharmaceutical companies, furniture manufacturers amongst others typically do business through distributors in the country.” However, for companies planning to have an on-ground local presence, cooperation with Saudi partners is required. “To set up manufacturing facilities in the Kingdom it is necessary to form local joint venture partnerships, which has become increasingly profitable, due to numerous incentives introduced by the Ministry of Health and the government of Saudi Arabia to attract foreign direct investment. These incentives include grants, land and interest free loans for extended periods. This is emphasized for local manufacturing in the pharmaceutical industry, as over 60 percent of drugs produced is directly bought by the government. — SG
