India’s Aurobindo Pharma to enter Saudi market with KAEC deal

Pharmaceuticals manufacturer Aurobindo Pharma and King Abdullah Economic City (KAEC) have signed a lease agreement, which will enable the Indian company to set up its first manufacturing facility in Saudi Arabia at KAEC’s Industrial Valley, the companies said in a joint statement on Sunday.

Aurobindo Pharma plans to invest in phases, starting with the production of medicines to treat chronic diseases such as diabetes, heart disease and hypertension. The facility is expected to generate more than 150 specialized jobs.

"The decision to base our company's regional operations in Saudi Arabia came in response to the rising demand for our products in the (Arabian) Gulf," Madan Mohan Reddy, Aurobindo’s director, said.

The company has more than 230 drugs certified by the US Food and Drug Administration (FDA), with around $2 billion in overall sales in more than 150 markets worldwide.

KAEC currently hosts more than 100 local and global companies, including the likes of Mars, Pfizer, and recently signed Pharmaline, which has already set up bases within the industrial zone.

Last month, Fahd Al Rasheed, managing director and chief executive of KAEC’s developer Emaar The Economic City (Emaar EC) told Argaam that 6,000 housing units would be ready in the area in 2016, while more will be added to the pipeline.