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NUPCO secures $667m in financing to boost Saudi healthcare supply chain

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Updated 13 February 2025
Reina Takla
Nadin Hassan
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NUPCO secures $667m in financing to boost Saudi healthcare supply chain

Updated 13 February 2025
Reina Takla Nadin Hassan

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.

Topics: PIF Private Sector Forum SaudiVision2030 Healthcare business

Closing Bell: Saudi benchmark index edges up to close at 11,626 

Updated 20 April 2025
Reem Walid
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Closing Bell: Saudi benchmark index edges up to close at 11,626 

Updated 20 April 2025
Reem Walid

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 73.62 points, or 0.64 percent, to close at 11,626.60. 

The total trading turnover of the benchmark index was SR3.57 billion ($953 million), as 199 of the stocks advanced and 37 retreated.    

Similarly, the Kingdom’s parallel market, Nomu, gained 264.47 points, or 0.92 percent, to close at 28,978.19. This comes as 46 of the listed stocks advanced while 34 retreated.    

The MSCI Tadawul Index gained 5.14 points, or 0.35 percent, to close at 1,474.53.     

The best-performing stock of the day was Alistithmar AREIC Diversified REIT Fund, whose share price surged 10.00 percent to SR7.26.   

Other top performers included Saudi Cable Co., whose share price rose 9.90 percent to SR135.40 as well as Saudi Printing and Packaging Co., whose share price increased 9.89 percent to SR11.56. 

Riyadh Cement Co. led the declines, dropping 3.15 percent to SR33.80.

Leejam Sports Co. slipped 2.03 percent to SR135.20, while Almoosa Health Co. edged down 1.21 percent to SR163.20. 

On the announcement front, Almarai Co. reported a first-quarter net profit of SR731.19 million for 2025, up 5.62 percent year on year, driven by a 6 percent rise in revenue, according to a Tadawul filing.

The company noted that higher energy costs partially offset the earnings growth. Almarai shares closed 1.90 percent higher at SR53.30. 

Jarir Marketing Co. posted a net profit of SR217.3 million in the first quarter of 2025, down 0.91 percent from the same period a year earlier, according to a Tadawul filing. 

The marginal decline came despite a 2.7 percent increase in both sales and gross profit, as well as a rise in other income, with higher selling and marketing expenses weighing on earnings. 

Its shares closed flat at SR12.82. 

Altharwah Albashariyyah Co. signed a binding agreement to acquire 100 percent of Amjad Watan through a mix of cash and share issuance, pending regulatory and shareholder approvals, the company said in a Tadawul filing. 

The deal includes SR7 million in cash, 95,804 shares worth SR5 million, and 536,501 conditional shares valued at SR28 million, to be transferred upon meeting performance targets. 

Shares of Altharwah Albashariyyah closed 3.57 percent lower at SR46.05. 

Topics: TASI MSCI NOMU

Gulf, China exchanges sign deal to boost commodity ties

Updated 20 April 2025
MOHAMMED AL-KINANI
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Gulf, China exchanges sign deal to boost commodity ties

Updated 20 April 2025
MOHAMMED AL-KINANI

JEDDAH: Relations between the Middle East and China’s derivatives markets are set to deepen following a new cooperation agreement signed between the Gulf Mercantile Exchange and the Shanghai Futures Exchange.

Under the agreement, GME — the Middle East’s leading international energy and commodities futures exchange — and SHFE — one of China’s primary commodity trading platforms — will collaborate on a range of strategic initiatives.

These include joint product development, market research, the exchange of insights on market trends, and investor education efforts, according to a joint statement released by both exchanges.

“This partnership is a key step toward strengthening alignment between China and the Gulf in commodities trading,” said Raid Al-Salami, managing director of GME.

“We value our cooperation with SHFE and look forward to the opportunities this agreement will unlock for both sides.”

The agreement comes on the heels of a strong performance year for GME. In January, the exchange reported a 12 percent increase in total trading volume for 2024, reaching 1.32 million contracts — up from 1.18 million the previous year. Front-month contract volumes surged 20 percent to a record 959,565 contracts, while total physical exposure rose by 11 percent, reflecting GME’s commitment to enhancing market accessibility and supporting sustainable growth.

Formerly known as the Dubai Mercantile Exchange, GME has a long-standing reputation as a key player in the region’s commodities sector. Established with the vision of creating internationally accessible derivatives markets for Middle East commodities, the exchange has continued to evolve in scope and ambition.

A major milestone came in 2024 when the Saudi Tadawul Group acquired a third strategic stake in the exchange. This acquisition led to a rebranding from DME to GME, signaling a renewed focus on building out commodity markets in Saudi Arabia and across the wider GCC as part of a long-term strategic roadmap.

With this new partnership, GME and SHFE are poised to play a central role in shaping the future of commodity trading between two of the world’s most dynamic economic regions.

Topics: Gulf Mercantile Exchange China commodities

Saudi Arabia advances in 2025 Global Intellectual Property Index

Updated 20 April 2025
Nadin Hassan
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Saudi Arabia advances in 2025 Global Intellectual Property Index

Updated 20 April 2025
Nadin Hassan

RIYADH: Saudi Arabia has made notable progress in the 2025 Global Intellectual Property Index, with its score rising by 17.5 percent, placing it among the fastest-improving economies out of the 55 countries evaluated.

According to the 13th edition of the index, published by the US Chamber of Commerce, the Kingdom now ranks 40th globally—a reflection of the substantial reforms driven by its Vision 2030 strategy. These reforms aim to enhance intellectual property protection, foster innovation, and support the growth of a knowledge-based economy.

Since 2019, Saudi Arabia’s overall score has increased from 36.6 percent to 53.7 percent in 2025, marking a cumulative improvement of over 40 percent in just six years.

This progress stems from a comprehensive transformation of the nation’s IP ecosystem, including the strengthening of legal frameworks and enforcement mechanisms.

Key milestones noted in the report include the extension of design protection from 10 to 15 years, the establishment of a specialized prosecution office for IP-related cases, and the launch of advanced online enforcement tools for copyrights and trademarks.

These developments highlight Saudi Arabia’s growing institutional capacity and ongoing regulatory modernization, led by the Saudi Authority for Intellectual Property.

The report also highlighted significant advancements in public awareness initiatives, inter-agency collaboration, and Saudi Arabia’s accession to key international intellectual property treaties. These developments have helped align the Kingdom’s IP framework more closely with global standards.

Notably, Saudi Arabia achieved higher scores in enforcement, international treaty participation, and the efficiency of its copyright enforcement system. These improvements reinforce the Kingdom’s ambition to become a regional and global center for innovation and creativity.

By fostering a more transparent and dependable intellectual property environment, Saudi Arabia is attracting increased foreign investment while also empowering local entrepreneurs to develop innovative ideas, products, and technologies.

The US Chamber of Commerce commended the Kingdom’s efforts to institutionalize intellectual property rights as a core component of its economic diversification strategy, positioning Saudi Arabia as a model among emerging markets.

Meanwhile, the UAE also performed strongly in the 2025 index, ranking 26th globally with an overall score of 60.66 percent. The UAE was praised for its robust patent and trademark protections, consistent judicial enforcement, and strong commitment to digital transformation.

Topics: intellectual property US Chamber of Commerce ranking

Oman property market cools in February as deals drop 8.3% 

Updated 20 April 2025
Nadin Hassan 
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Oman property market cools in February as deals drop 8.3% 

Updated 20 April 2025
Nadin Hassan 

RIYADH: Oman’s property market saw a dip in activity in February, with total real estate transactions falling 8.3 percent year on year to 362.3 million Omani rials ($940.7 million), official data showed. 

According to figures from the National Centre for Statistics and Information, this compares to 394.9 million rials recorded during the same period in 2024, Oman News Agency reported.   

The moderation in activity comes amid tighter global financial conditions, shifting investor sentiment, and a gradual normalization of real estate markets across the Gulf following the post-pandemic surge in demand and pricing. 

Despite the broader slowdown in Oman’s real estate market, revenue from legal transaction fees rose 5.9 percent to 12.3 million rials, up from 11.6 million rials a year earlier. 

The value of sale contracts dropped 18.3 percent to 160.3 million rials, while the number of contracts declined 3.2 percent to 11,177, down from 11,543 in February 2024.  

Meanwhile, mortgage transactions edged up 1.8 percent to 200.1 million rials across 3,416 contracts, compared to 196.5 million rials across 2,989 contracts a year earlier. 

Exchange contracts dropped to 266, valued at 1.9 million rials, down from 299 contracts worth 2.2 million rials in the same period last year.  

In Oman’s real estate market, swap contracts—also known as real estate exchange agreements—are arrangements that enable two parties to trade property ownership with engaging in cash transaction.

The number of property titles issued rose slightly by 0.8 percent to 39,704, while those issued to Gulf Cooperation Council citizens increased by 7.1 percent to 227, compared to 212 in February 2024. 

The cooling follows a strong 2024, when Oman’s real estate sector surged 29.5 percent, with total transactions reaching 3.3 billion rials, driven by foreign investment and government-led reforms.  

During the first nine months of that year, the sector contributed 820.7 million rials to gross domestic product, according to the Ministry of Housing and Urban Planning, as reported by Oman News Agency in February. 

The sector’s performance reflects broader regional momentum as Gulf countries press ahead with economic diversification strategies. 

In Saudi Arabia, real estate prices rose 3.6 percent year-on-year in the fourth quarter of 2024. Dubai saw a 30 percent jump in residential sales to $32.4 billion during the same period, while Qatar recorded 3,548 real estate transactions in 2024 totaling $3.97 billion. 

To support the sector, Oman has eased foreign ownership rules and introduced tax incentives aimed at attracting investment and boosting development across the sultanate. 

Topics: Oman real estate

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US tariff escalation puts $22bn of Arab exports at risk, says ESCWA report

Updated 20 April 2025
NOUR EL-SHAERI   
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US tariff escalation puts $22bn of Arab exports at risk, says ESCWA report

Updated 20 April 2025
NOUR EL-SHAERI   

RIYADH: Arab countries could see up to $22 billion in non-oil exports affected by sweeping new US tariffs, with six economies facing the most direct disruption, according to a new analysis. 

A report by the UN Economic and Social Commission for Western Asia said the measures, imposed on April 2, include a blanket 10 percent tariff on nearly all imports, with rates climbing as high as 42 percent for countries with trade surpluses. 

While oil remains exempt, the duties now cover a broad range of industrial goods such as textiles, fertilizers, aluminium and electronics, effectively nullifying trade preferences previously granted to Bahrain, Jordan, Morocco and Oman. 

ESCWA said that exports from Bahrain, Egypt, Jordan, Lebanon, Morocco and Tunisia are expected to be “significantly affected by the new tariff hikes,” with Jordan facing the highest exposure due to its reliance on the US market. 

“A country having a higher share of non-oil exports to the United States is expected to be directly impacted,” the report stated. 

“The direct impact is particularly high for countries where exports to the United States constitute a major share of their total global exports.” 

While some Arab countries like Egypt and Morocco initially appeared well-positioned to benefit from trade diversion away from heavily tariffed economies like China and India, that potential has faded following a policy shift by Washington.  

“With the pause announced on 9 April for most countries, excluding China, the trade diversion effect in favor of most Arab countries is likely to disappear,” ESCWA noted. 

ESCWA noted that the impact will vary considerably across the region. Five other countries — Algeria, Oman, Qatar, Saudi Arabia, and the UAE — are likely to see smaller effects, while eleven Arab countries are projected to experience negligible exposure due to limited or no exports to the US. 

These include Iraq, Kuwait, and Libya, as well as several least developed countries such as Somalia, Sudan, and the Comoros. 

While direct trade impacts will be concentrated among a handful of countries, the broader Arab region may still suffer from indirect effects tied to global demand conditions. 

ESCWA warned that reduced consumption from key partners such as China and the EU — both major buyers of Arab goods — could negatively affect export performance across the board. 

The EU accounts for 72 percent of Tunisia’s exports and 68 percent of Morocco’s, while China purchases 22 percent of the GCC’s oil and chemicals.  

Preliminary macroeconomic modeling for 2025 indicates moderate net impacts for the Agadir Agreement countries — Egypt, Jordan, Morocco and Tunisia.   

These nations are expected to see declines in gross domestic product, exports and investment, though some mitigation may occur through limited trade redirection.   

GCC economies, by contrast, are projected to experience a smaller aggregate effect, with real GDP declining slightly.   

However, the report suggests that losses in oil revenue, tied to falling prices and reduced global demand, could weigh more heavily on fiscal outcomes.  

The simulation assumes full implementation of the April 2 US tariffs and corresponding retaliatory measures from China announced on April 5.   

Based on this scenario, real GDP in the Agadir countries is projected to fall by 0.41 percent, exports by 1.41 percent, and total investment by 0.38 percent.   

The GCC region is expected to register a GDP loss of just 0.10 percent, reflecting lower exposure to US tariffs but higher vulnerability to oil market fluctuations.  

The fiscal dimension of the shock is also becoming more apparent. Rising global uncertainty has already driven up borrowing costs for many Arab economies.   

Between April 2 and April 9, 10-year bond yields increased by 36 basis points in Arab middle-income countries and by 32 basis points in the GCC.  

The impact is particularly acute in debt-heavy MICs. ESCWA estimates that Egypt will face an additional $56 million in interest payments in 2025, Morocco $39 million, Jordan $14 million, and Tunisia $5 million.   

These increases, while modest in dollar terms, represent a non-trivial strain on public finances.  

The Arab region’s trade relationship with the US has already been weakening.  Total exports from Arab countries to the US dropped from $91 billion in 2013 to $48 billion in 2024, primarily due to the decline in American crude oil imports.   

However, non-oil exports have grown steadily, from $14 billion in 2013 to $22 billion last year, underscoring the increasing relevance of industrial and value-added goods in Arab export profiles.  

In light of these developments, ESCWA is urging Arab governments to respond with coordinated policy actions.   

Recommended measures include accelerating regional economic integration, pursuing carve-outs under existing trade agreements, and recalibrating free trade arrangements to avoid preference erosion.   

The agency also emphasized the need for countries to strengthen fiscal buffers and diversify trade and investment partnerships.  

As the geopolitical and trade environment grows more uncertain, Arab economies are being advised to prepare for continued volatility.   

“Arab countries must recognize the diverse, and sometimes contradictory effects of the United States tariff escalation,” ESCWA stated, warning that policy inaction could expose vulnerable economies to prolonged disruptions. 

Topics: Trump tarrif GCC export

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