The rise of biotechnology and genomics in Ƶ
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Fueled by advancements in emerging technologies, the global biotechnology and genomics field is expected to surge at a double-digit growth rate over the coming years, and governments around the world are ramping up efforts to help the sector reach its potential.
The US, Europe, and Southeast Asia have led the charge to date, but Ƶ is raising the game in the Middle East and North Africa region. The Kingdom’s biotech sector might still be in its nascency, but through targeted initiatives, investment, and political ambition, Ƶ is capitalizing on the rapidly evolving opportunity.
The global picture
According to Grand View Research and Polaris Market Research, the value of the global biotechnology market was estimated at $1.5 trillion in 2023 and is expected to develop at a double-digit compound annual growth rate reaching between $3.5 trillion and $4 trillion by 2030.
On the demand side, growth is expected to be driven by calls for better healthcare diagnostics and treatment services coupled with a growing emphasis on wellness and prevention. On the supply side, aspects such as increasing government focus, rising private sector investment, and technological advancements are making an impact.
As the sector continues to develop, the public and private sectors are exploring various use cases along the wellness and healthcare value chain. Notably, there has been a shift toward precision healthcare powered by artificial intelligence and machine learning as well as the emergence of ultra-targeted therapies that leverage genomic data. Other key trends include:
Business models: New business models based on collaboration among players in the healthcare ecosystem are emerging as critical to the success of novel approaches to preventive and curative care. Arthur D. Little has outlined the importance of such collaboration in driving innovation in its publication, “Hyper-collaboration in the Healthcare and Life Science Industry – The New Imperative.”
Treatments: New paradigms in treatment have emerged, with a focus on advanced therapeutics, such as gene editing, that provide highly personalized and targeted therapies for diseases including cancer and rare genetic disorders. A recent ADL publication, “Tomorrow’s Life Sciences,” details the emerging paradigms in treatments and the power of genes and omics.
Data and technology: With advancements in next-generation sequencing technologies, generating and analyzing the whole human genome will soon be routine for any laboratory. Gathering large-scale biological information and data from other pools of molecules will also help generate insights related to disease development and treatment effects.
A Kingdom in focus
Biotechnology and genomics in Ƶ are still in their infancy, with the Kingdom accounting for just 0.2 percent of the global genomics sector. However, progress is underway — and it is being led from the top.
The Kingdom’s commitment to developing the sector is clear, and it is marked by the announcement of initiatives including the National Biotechnology Strategy Committee and Riyadh Biotech City.
Meanwhile, the Saudi Genome Project 2.0 has set ambitious goals including enhancing the Kingdom’s position as the regional leader in the field of genomics and genetics.
Already, through partnerships with international organizations, the project has established an extensive genetic repository, with 63,000 genetic samples gathered and 7,500 pathogen variants detected to date.
More broadly, investment in research and development and building a knowledge-based economy are at the forefront of Ƶ’s National Vision 2030 and National Transformation Program.
In line with these ambitions, the Kingdom dedicated $3.9 billion to developing the biotech and genomics sector in 2021 and aims to become a global leader in innovation and R&D, with annual investment equivalent to 2.5 percent of the gross domestic product by 2040. This is expected to add $16 billion to the economy and create high-value jobs in science and technology.
To support the growing sector, the Kingdom is also developing a clear regulatory and governance mechanism for R&D. The Saudi Food and Drug Authority has proposed new guidelines for clinical trials and the Saudi Research Development and Innovation Authority is slated to act as an enabler, legislator, and regulator going forward.
Research and academia
While government-led investment and vision are driving change, various entities within the R&D ecosystem are enhancing the biotechnology agenda. Prime among them are King Abdullah International Medical Research Center, King Abdullah University of Science and Technology and King Abdulaziz City for Science and Technology.
KAIMRC works with global academic institutions on vaccines, genetic research, therapeutics, and drug screening, while KAUST and KACST are fostering research groups in the fields of genomics and biosciences through collaboration with industry.
For instance, the National Biotechnology Center is a joint effort between KACST and King Faisal Specialist Hospital and Research Centre. The project is designed to enhance medical research and biotechnology, with over 110 projects approved and 67 ongoing.
Other key actors include the Saudi National Institute of Health, which provides support to research personnel working in the sector; the non-profit Hevolution Foundation, which focuses on longevity medicine; and Lifera, a PIF entity that focuses on manufacturing life-saving and essential pharmaceutical products.
Alongside domestic initiatives, Ƶ has also attracted attention from global companies, with memorandums of understanding signed with Boehringer Ingelheim, Novo Nordisk, and Novartis, among other multinationals.
Accelerating progress
Ƶ is clearly moving in the right direction when it comes to biotechnology, but there is still a long way to go in developing capabilities across the value chain, and it is here that the Kingdom’s accelerator and incubator programs come to the fore.
This will also support harmonization among different stakeholders in the biotech ecosystem in Ƶ. From KAIMRC’s Medical Biotechnology Park to KAUST’s Taqadam initiative and the Biotech Startup Program in Dammam Valley, organizations throughout the Kingdom are united around the same objective: building a thriving biotech and genomics ecosystem that will ascend Ƶ to the global stage.
The local biotech landscape is evolving, but this is just the beginning. To cement its status as a leader in biotechnology and genomics, Ƶ should continue as it has started — boosting local capabilities, fostering ground-breaking innovation and enhancing international and industry collaboration as well as developing human capital, attracting talents, enhancing IP protection, and investing in specific technology and capabilities required for its future global leadership role.
- Vikas Kharbanda is a partner and Middle East healthcare lead at Arthur D. Little. Patrick Linnenbank is a partner in the healthcare practice at Arthur D. Little Middle East.
