Private Boost for Public Healthcare

If the kingdom is to maintain its role as the region's leading provider of medicinal drugs and healthcare products, the Riyadh government believes private sector investment will be vital to bolster research and development (R&D), build modern plants and production equipment and train skilled technical labor.

One of the privately-owned conglomerates that has led the way in this respect has been the Saad Group, the seventh largest in the kingdom. The Saad Specialist Hospital, which has 507 beds and a range of associated clinics and laboratories, is the first private hospital in the kingdom to win endorsement from the international arm of the Joint Commission for the Accreditation of Healthcare Organizations, the accrediting body for more than 18,000 hospitals in the U.S.

The Tamer Group is another of the kingdom's private conglomerates looking to expand its investment in new projects, ranging from manufacturing facilities to the fields of industrial, trading, finance and real estate.

The group is a partner in a project under construction in Mecca called Arabio which will produce vaccines and serum developed by Jeddah BioCity, a company established under the chairmanship of Prince Abdulmajeed Bin Abdulaziz, the governor of the Mecca province.

“R&D will be limited to developmental research and formulations,” says Ayman Tamer, president of the Tamer Group. “In the beginning the company will have to license-in know-how from reputable foreign pharmaceutical companies.”

In this respect, negotiations are underway for technology transfers with Berna Biotec (Crucell), Chiron, Pasteur and GSK Production is scheduled to begin next year.

Tamer emphasizes that the patent laws in the kingdom are strong and innovation is safe. “There is most definitely a possibility for further investment in R&D in emerging countries like Saudi Arabia,” he says. “Obviously it requires a great deal of capital but, more than that, it requires innovation which can be found here in Saudi Arabia, especially through partnerships with universities.”

The Tamer Group is a shareholder in the International Medical Center (IMC) in Jeddah. This 300-bed multi-speciality hospital was established by prominent Saudi businessmen in a joint-venture with the Cleveland Clinic Foundation of Ohio, a leading provider of healthcare services, research and technology.

Dr Walid Fitaihi, the chairman and chief executive of the IMC, says the hospital is equipped with the latest technology, including its own water purification system. “The IMC's focus is on healing the mind, body and soul, and viewing patients as human beings,” he says.

He intends to maintain the 2:1 nurse patient ratio that is practiced at the Cleveland Hospital and, in addition to the hospital's medical services, he plans to provide continuous medical education for a range of health students and officials.

Ayman Tamer says his group invested in the IMC because of the great faith it has in Dr Fitaihi. “I really praise him for his philanthropy, his spirit and his dedication to the community,” he adds.