UAE’s Julphar to open pharma factory in Saudi Arabia’s KAEC

Abu Dhabi-listed Gulf Pharmaceutical Industries (Julphar) will open a manufacturing unit in Saudi Arabia’s King Abdullah Economic City (KAEC) on April 20 as it looks to tap into the growing demand for low-cost medicines in the kingdom, its biggest market in the Gulf region.

The new factory is ready to start production and is awaiting final approvals from the Saudi authorities, Julphar’s marketing director Hosam Badr told Argaam.

“The Saudi market is the one of the biggest for us, and the competition is very high there. A local Julphar manufacturing unit there will give us better access to the market and better tools to tackle competition,” Badr said.

The Ras Al Khaimah-based company will be joined by Cigalah Group as the local partner in Saudi Arabia.

“The factory will mainly cover the Saudi consumption. We may think of starting exports from the unit at a later stage, but the preliminary plan is for Saudi only,” Badr said.

Julphar currently distributes medicines to more than 40 countries, operating out of 15 manufacturing units globally, according to the company’s website.

Badr said a manufacturing unit in Saudi Arabia will help bring down production costs, as expenses on transport and other logistics would be lower.

“There is a transition in Saudi now towards branded generic medication, which is lower in cost,” Badr said, adding that affordable medicine is key to ensuring greater market satisfaction in the kingdom.

Julphar is also planning to expand its reach to 34 countries across the world. Badr said the firm is already exporting to Oman, Kuwait, Yemen, Lebanon, Jordan and Egypt; and is expanding further in North Africa and sub-Saharan regions.

With the factory at KAEC, Julphar will join other pharmaceutical companies – such as Pfizer, Aurobindo Pharma and Pharmaline – that are also present at the industrial hub on the Saudi Arabian coast off the Red Sea.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com