- High demand for expert consulting
- Lack of industry-specific knowledge
- Limited local talent pools
Saudi Arabia’s push to become a regional biotechnology hub is fuelling demand for specialised consulting services, as it navigates the challenges of building a life sciences sector from scratch.
The kingdom is keen to develop a biotech sector to tackle the high local prevalence of diseases such as diabetes and to exploit commercial opportunities to strengthen its economy. But there is a dearth of expertise, experts say.
Last year Saudi Arabia launched a National Biotechnology Strategy, as part of its Vision 2030 plan to diversify the economy and develop new sectors.
The intention is to make the kingdom the Middle East’s biotech leader by 2030 and a global player by 2040, eventually making a contribution of $35 billion, or 3 percent of non-oil GDP.
Clay Heskett, global managing partner at LEK Consulting, which has more than 20 offices around the world, says his firm has seen a surge in demand as the kingdom focuses on creating a biotech cluster.
The demand has led LEK to expand its presence in the Gulf, including new offices in Riyadh and Abu Dhabi, despite having served the region from other locations for over a decade.
“We’ve done a lot of work recently in Saudi Arabia around how to build a biotech cluster,” Heskett says.
“It’s early days, but they have a real opportunity.”
Though Saudi Arabia remains a focal point for the global consultancy industry, insiders say it is no longer the land of milk and honey for international operators and there is now a tighter hold being placed on budgets.
Heskett says the highest demand for consulting expertise is in healthcare, education and financial services, but says there is a lack of specialised, industry-specific knowledge.
“There’s been a lot of access to consulting resources in the GCC, but not always the world’s best expertise,” he says.
Mansoor Ahmed, an independent adviser, confirms a surge in demand in Saudi Arabia for specialised consulting services, which he says is driven by the ambitious dollar value targets set in the Vision 2030 plan.
Ahmed says that Saudi Arabia is also forming partnerships with international universities and providing scholarships to produce talent within the country, instead of relying on consultants.
Heskett says Saudi Arabia is prioritising research and development alongside manufacturing to ensure supply chain security, especially for essential drugs such as insulin, given the high prevalence of diabetes in Saudi Arabia and the wider Gulf.
Ahmed say that Saudi Arabia’s strategy also prioritises vaccines, and expanding its genomic database to integrate precision therapies into healthcare.
Neom, the kingdom’s futuristic city, is establishing facilities for gene therapy and regenerative medicine.
“Neom has signed agreements with multiple biotech companies to establish cutting-edge research hubs within the city,” Ahmed says.
Global giants such as Pfizer, Roche, and Novartis are also exploring entry into Saudi Arabia to expand the country’s pharmaceutical and biotech capabilities, he says.
But despite notable deals, Ahmed says the region’s biotech sector is still in its “nascent stage”, as countries such as the UAE, Qatar and Turkey also make significant investments.
“All these countries face challenges, including limited local talent pools, heavy reliance on imports for biotech products and fragmented regulatory frameworks across the region,” he says.
Ahmed also points to challenges Saudi Arabia must still address, notably intellectual property protection and regulation – especially protecting human data.
“Another important factor will be the ability to attract top-tier talent globally and develop local scientists specialising in biotech, which will require scholarships for talented Saudis and collaborations with world-class universities to develop Saudi professionals in this sector,” Ahmed says.
Heskett says that Saudi Arabia’s focus on achieving measurable results is becoming more pronounced.
“There’s a real focus on value creation now,” he says.
“Investors and management are asking how to ensure a return on investment, rather than simply focusing on growth.”
