![]() ![]() ![]() Pharmaceutical companies have been increasingly investing in Saudi Arabia in recent years, attracted by the country's large and growing population, its strong healthcare infrastructure and the government's commitment to developing the sector as part of its ‘Vision 2030’ plan. These indicators suggest investors in Saudi Arabia will continue to have increased confidence.Īn attractive business landscape will continue to drive investment by pharmaceutical companies in Saudi Arabia. Moreover, the labour market remains tight by historical standards ( see chart below, left), a trend which denotes still strong willingness by firms to expand. Investors use the PMI to gauge the health of the economy and make investment decisions. Our view seems to be supported by the ongoing strength of purchasing managers' index (PMI) readings ( see chart below, right), which have proved to be a reliable leading indicator of future investment activity. However, we still think that investment activity will remain above-trend. ![]() Our Country Risk team expect that real GDP growth will ease from 8.7% in 2022 to 3.1% in 2023 in Saudi Arabia. Saudi Arabia boasts a large and youthful population, along with a strong consumer market. Another factor driving the increase in IPOs is the growing interest from local and international investors. These initiatives have made it easier for companies, particularly small and medium-sized enterprises (SMEs), to access the capital markets and raise funds through IPOs. These reforms include the streamlining of the listing process, reduced bureaucracy and enhanced transparency. As part of this plan, the government introduced several regulatory reforms to facilitate business growth and attract investment. For instance, the ‘Vision 2030’ initiative launched in 2016, aims to reduce the country's dependence on oil and transform Saudi Arabia into a globally competitive economy. Furthermore, the strong IPO activity reflects the success of economic reforms and regulatory changes aimed at improving the business environment. The IPO signifies that pharmaceutical companies are willing to go public and raise capital from the stock market, reflecting growing confidence in the economy's growth potential and the investment climate in Saudi Arabia. On May 3 2023, drugmaker Jamjoom Pharma announced plans to list 30% of its issued shared capital on the Saudi Exchange's main market through an IPO. Strong initial public offering (IPO) activity highlights strength in the economic environment in Saudi Arabia. However, Saudi Arabia’s challenging regulatory environment will present headwinds to innovative multinational drugmakers.An attractive business landscape will continue to drive investment by pharmaceutical companies in Saudi Arabia.Strong initial public offering activity highlights strength in the economic environment in Saudi Arabia. ![]()
0 Comments
Leave a Reply. |