Saudi sets up state medical supplier

The cost of medical supplies in Saudi Arabia has skyrocketed in recent years. (Getty Images)

Saudi Arabia is to establish a national company that will be the sole supplier of medicines and medical appliances to government health institutions.

The National Company for Unified Purchase of Medicines and Medical Appliances will have a capital of 2 million riyals ($533.1 million), and the government plans to sell 30% of its shares in an initial public offering (IPO) later this year, Saudi daily Arab News reported on Thursday.

Quoting informed sources, the newspaper said leading medical companies that dominate the Saudi market would not be invited to become founding members the new firm.

About 10 companies control around 50% of the kingdom’s medical supplies market, which is estimated to be worth more than 5 billion riyals, according to the paper.

Patients will be hoping the creation of the new company will bring down the cost of medical treatment, which has increased dramatically in the last few years.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM