Money and Business

Saudi-French agreement to localize the veterinary vaccine industry

In a strategic move aimed at enhancing food and biosecurity in the Kingdom of Saudi Arabia, Riyadh witnessed the signing of a significant memorandum of understanding between the National Program for the Development of the Livestock and Fisheries Sector and CEVA, a leading French company in animal health. The signing ceremony, held under the patronage of the Minister of Environment, Water and Agriculture, Engineer Abdulrahman bin Abdulmohsen Al-Fadhli, and in the presence of prominent figures from the sector, marked the beginning of a new phase of Saudi-French cooperation in the field of veterinary pharmaceuticals.

Strategic dimensions that align with Vision 2030

This agreement is an integral part of the Kingdom's Vision 2030, which prioritizes food security and the localization of vital industries. The significance of this event extends beyond mere commercial considerations, encompassing national and regional dimensions. The Kingdom seeks to reduce its reliance on imports in critical sectors and build self-sufficiency capable of addressing health and environmental challenges. Localizing vaccine manufacturing is a cornerstone for ensuring the sustainability of food supply chains, particularly in the rapidly growing poultry sector.

Transfer of mRNA technologies and epidemic control

Under the memorandum, the two parties will work to transfer the latest global technologies to the Kingdom, including messenger RNA (mRNA) vaccine technologies, a revolutionary technology that has proven its effectiveness globally. The collaboration also focuses specifically on joint research and development of a Middle East Respiratory Syndrome (MERS-CoV) vaccine for camels. This aspect is of paramount international importance, given that camels are the intermediate host for this virus, and therefore controlling it through veterinary means directly protecting human public health, highlighting the Kingdom's leading role in promoting the "One Health" concept.

Huge investments and coverage of market needs

The collaboration aims to meet the needs of the poultry vaccine market in the Kingdom, currently estimated at around 750 million riyals. The French company plans to cover approximately 30% of this market in the first phase, with initial investments of around 250 million riyals. These figures reflect the high economic viability of the project, especially given the anticipated market growth rate exceeding 10% annually, reaching approximately 1.25 billion riyals by 2030, supported by the government's strong commitment to supporting poultry projects and increasing self-sufficiency.

"Biotech Park" City: A regional hub for biotechnology industries

The joining of CEVA as the first international partner in the Veterinary Biotech Park in Dhurma Governorate is a strong indication of the Kingdom's success in attracting high-quality investments. This city aims to be a global benchmark serving not only the Kingdom but also extending its influence to the Gulf countries, the Middle East, and Africa. By providing advanced infrastructure and implementing international Good Manufacturing Practices (GMP) standards, the Kingdom is establishing a solid industrial base that contributes to diversifying the national economy and creating quality job opportunities for Saudi talent in scientific and technical fields.

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