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EMADELDIN SATTI , Purchasing Manager , Zahran Operation & Maintenance Company
Healthcare and Pharmaceutical Industries in Saudi Arabia
Nabil A. Issa, Esquire
*
Mohammad I. Al-Ammar, Esquire
Salah Mostafa, Esquire
King & Spalding LLP
Dubai, United Arab Emirates
; and Riyadh, Saudi Arabia
This article addresses the most significant S
audi Arabian legal issues to be considered
in connection with investment in
the healthcare sector in t
he Kingdom of Saudi Arabia.
Saudi Arabia is the largest economy in t
he Middle East and, while oil wealth has
brought new opportunities, it has led to a growi
ng incidence of lifestyle diseases such as
diabetes and heart disease.
1
The Saudi Arabian government has established certain
regulatory reforms to encourage
private sector investment in the healthcare sector. This
article provides an overview of the legal
landscape of the Saudi Arabian healthcare
sector. The first section covers the pha
rmaceutical sector, and the second section
covers healthcare facilities. Throughout this
article, we also discuss general corporate
and other issues to be considered by foreign
investors in Saudi Arabia. The healthcare
sector is undergoing constant change because
of its high importance to Saudi Arabian
nationals, and certain agencies have overlapping responsibilities, as described below.
As a relevant background, one must also cons
ider that Saudi Arab
ian law is founded on
the
Shari’ah
(Islamic law), largely consisting of the Holy
Qur’an
and the
Hadith
(sayings
or “traditions” of the prophet
Mohammed). There are four pr
incipal schools of Islamic
jurisprudence: Hanafi, Maliki, Hanbali and
Shafi’i, each of which has its own set of