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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.