RIYADH: Saudi Arabia’s National Unified Procurement Co. has secured three significant financing agreements totaling SR2.5 billion ($666.6 million) to strengthen supply chain financing for healthcare suppliers.

In an interview with Arab News at the PIF Private Sector Forum, NUPCO’s Chief Commercial Officer Khalid Al-Ghamdi said that the agreements were made with prominent financial institutions, including Banque Saudi Fransi, Abu Dhabi First Bank, and Tameed. These partnerships are designed to provide suppliers with better access to capital, enabling them to meet the increasing demand for medical supplies across Saudi Arabia.

The company signed an agreement worth SR500 million with Banque Saudi Fransi to finance the supply chain in healthcare. “It’s for the suppliers,” Al-Ghamdi said.

Another agreement with Abu Dhabi First Bank is worth SR1 billion to enable “our suppliers to take financing throughout these agreements and making sure that they are really overcoming all the financing challenges that they might have.”

The agreement signed with Tameed is worth SR1 billion to support small and medium enterprises within the healthcare sector.

“Tameed is looking after the SMEs, where we are trying as much as we can to make them enabled and grow within the sector of the healthcare as well,” Al-Ghamdi explained.

NUPCO, formerly dedicated to serving public hospitals, is now expanding its services to the private healthcare sector.

Al-Ghamdi highlighted that the company’s healthcare logistics and digital solutions will now be available to private hospitals, clinics, and small and medium-sized enterprises.

“What we discovered is that, up until the post-COVID period, NUPCO was primarily focused on providing services to the public sector, as that was our main priority and mandate,” he said.

Al-Ghamdi added: “However, we soon realized that the private sector is an integral part of the healthcare ecosystem. The ongoing transformation in healthcare will eventually lead to a shift, with the privatization efforts making even the public sector more aligned with private sector dynamics.”

A central component of this expansion is the introduction of a new digital healthcare marketplace, scheduled to launch by the end of the first quarter of 2025—just one month away.

This innovative platform will enable private clinics and SMEs to purchase medical equipment and supplies seamlessly, while also offering tailored financing solutions. By doing so, it aims to simplify access to advanced medical infrastructure, empowering healthcare providers to enhance their capabilities and improve patient care.

“For example, a small clinic wants to buy a dental chair or a laser machine. They can go through the marketplace and find financing solutions over there, and instead putting their capital in one asset like one chair or one laser machine, they can go for five or six, as much as they can,” Al-Ghamdi stated.

Enhancing Kingdom’s healthcare logistics

The financing agreements are a key element of NUPCO’s comprehensive strategy to bolster the healthcare sector’s logistics and procurement infrastructure. As a wholly owned subsidiary of the Public Investment Fund, NUPCO is at the forefront of driving Vision 2030’s healthcare transformation by optimizing the distribution of medical supplies throughout the Kingdom.

In a significant move to further this mission, NUPCO unveiled five strategic partnerships with global logistics leaders—DHL, SMSA, and UPS—during the PIF Private Sector Forum.

These collaborations are designed to strengthen and expand medical supply distribution networks, ensuring efficient and reliable delivery of critical healthcare resources across Saudi Arabia.

This initiative underscores NUPCO’s commitment to advancing the Kingdom’s healthcare ecosystem and supporting its long-term economic and social goals.

“We are making sure that all of them is alliances that we build our relationship to make sure that we extend the services all the way to their businesses,” said Al-Ghamdi.

Additionally, NUPCO forged a strategic partnership with the Saudi Authority for Industrial Cities and Technology Zones, the Kingdom’s largest operator of industrial cities, to support future logistics expansion and enhance operational capabilities. This collaboration aims to leverage MODON’s extensive infrastructure and expertise to further streamline healthcare logistics.

Furthermore, NUPCO signed an agreement with Monsha’at, Saudi Arabia’s Small and Medium Enterprises General Authority, to integrate SMEs into its supply chain ecosystem.

This initiative is designed to empower smaller businesses by providing them with opportunities to contribute to the healthcare sector, fostering economic growth and aligning with Vision 2030’s goals of diversifying the economy and supporting local enterprises.

Preparing for the future

With Saudi Arabia’s healthcare sector experiencing rapid growth, NUPCO is strategically scaling its logistics network to keep pace with rising demand. The company plays a pivotal role in the Kingdom’s healthcare ecosystem, currently supporting over 300 hospitals and 2,500 clinics.

This extensive reach ensures that 97 percent of Saudi Arabia has access to essential medical supplies and services.

“We are forecasting that between now and 2030, there will be additional more than between 26,000 to 43,000 extra beds that’s going to be in the market,” said Al-Ghamdi, adding that major events such as the World Cup 2034 and Expo 2030 will further drive demand for healthcare services.

As part of its ambitious expansion strategy, NUPCO is investing heavily in advanced logistics infrastructure, including the development of two cutting-edge warehouses slated to become operational by 2026. These state-of-the-art facilities will further enhance the company’s capacity to meet the growing demands of Saudi Arabia’s healthcare sector.

NUPCO’s nationwide distribution network is already a cornerstone of its operations, boasting over 2,600 delivery points and ensuring an impressive 8-hour delivery window for medical supplies within a 100-km radius of its warehouses. This efficiency underscores NUPCO’s commitment to reliability and speed in serving healthcare providers across the Kingdom.

Through its latest strategic agreements and initiatives, NUPCO is solidifying its role as a critical enabler of Saudi Arabia’s healthcare transformation.

On the second day of the PIF Forum, the company signed a MoU with MODON to enhance logistics services, localize content, and strengthen pharmaceutical supply chains within the Kingdom.

The agreement also aims to offer third-party logistics solutions to pharmaceutical factories and businesses in industrial cities.

By supporting both public and private sector growth, the company is driving the development of a robust, efficient, and cost-effective medical supply distribution system.

RIYADH: Saudi Arabia continues to prioritize artificial intelligence as a cornerstone of its digital transformation, a top official said.

In an interview with Arab News during the third edition of LEAP 2025, Mohammed Al-Robayan, deputy minister for technology at the Saudi Ministry of Communications and Information Technology, stated that the Kingdom is dedicated to ensuring robust computing infrastructure to fuel AI-driven innovation and economic diversification.

He underscored that AI is at the heart of Saudi Arabia’s digital transformation strategy, with unwavering support from the nation’s leadership, government agencies, and the private sector.

“It’s all about AI. It’s top of mind of our leadership. It’s top of mind of our ministry, of the different government entities that we collaborate with to achieve this agenda,” Al-Robayan said.

He continued: “It’s also top of mind of the private sector, which is extremely important, so AI is really important. We have to make sure that this computing power is available to our ecosystem here in Saudi Arabia. I would say this is the No.1 agenda item that we’re tackling.”

Al-Robayan also emphasized that a flourishing startup ecosystem is a vital element of the nation’s long-term digital strategy. He highlighted that supporting startups is key to cultivating a pipeline of companies with the potential to become unicorns—startups valued at over $1 billion.

“But another important part is the startup ecosystem here in Saudi Arabia. This is extremely important. This feeds into the pipeline of companies that eventually graduate to become unicorns,” Al-Robayan said.

He added: “We have seven unicorns already in the market, and you need to build the pipeline… We have multiple initiatives that we are working on.

Al-Robayan went on to say: “We have the National Technology Development Program. We have the Garage. They have been extremely helpful. They’re pumping a lot of money into this tech sector here in Saudi, and this has resulted in jobs, which is a big priority for us.”

The Kingdom is also experiencing substantial private sector investments in AI and technology, which are crucial for bolstering computational capacity and supporting economic diversification under Vision 2030. According to Al-Robayan, these investments will play a pivotal role in reshaping Saudi Arabia's technology landscape.

“These will enable us to, first of all, have different computer power that is necessary for the Kingdom to advance in its agenda. This is one of the highest priorities, technology and the adoption of technology,” he said.

He said the these initiatives will have a profound impact on the Kingdom and its efforts to diversify away from oil.

Additionally, ensuring a balanced regulatory framework is a key focus for the Ministry, as it strives to foster investment while protecting innovation.

“With regulation, you don’t want to overdo it—just enough to avoid stifling innovation. Protecting investments and ensuring the democratization of AI and compute power is critical,” Al-Robayan said.

Cybersecurity is another top priority, with Saudi Arabia positioning itself as a global leader in cyber defense. Al-Robayan stressed that collaboration with the National Cyber Security Agency plays a critical role in ensuring regulatory requirements are met early, offering clear guidelines for investors.

“Cybersecurity is extremely important, and you can imagine why and Saudi Arabia is one of the top-ranking countries in cybersecurity. This is also part of the education of the investors throughout the journey prior to announcing different investments. We don’t want any surprises to happen for them or for the market,” he said.

The Kingdom has already secured nearly $15 billion in tech investments announced at LEAP 2025, with more to come. Al-Robayan hinted at upcoming initiatives to further accelerate the Kingdom’s digital transformation.