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KAEC KSA, Banaja Holdings sign a contract

Banaja Holdings to boost pharmaceutical sector in King Abdullah Economic City

King Abdullah Economic City has signed a contract with Banaja Holdings Group, a specialized in distributing pharmaceuticals and medical equipment, to lease land in the Industrial Valley-phase 3 aiming at initiating its expansion plans in the Saudi market.

Banaja Holdings plans on using the land, which is 211,700 square meters, to set up a regional distribution center and logistic services for its imported pharmaceutical products. It is expected that the development of the new industrial facilities will take two to three years.

In light of this occasion, Mr. Fahd Al-Rasheed, Group CEO and Managing Director of KAEC, has expressed pride in the investment of Banaja Holdings Group in KAEC, stating that it is considered one of the pioneering companies in the health sector and pharmaceutical products in the Kingdom and the entire region.

Al-Rasheed also said: “We are glad that Banaja Holdings is present on the list of major local and international companies in the Industrial Valley as part of their strategic expansion plan. We are interested in this sector due to the distinctive job opportunities it offers and to its contribution in healthcare and safety of citizens.”

Mr. Fahd pointed out: ”The state-of-the-art infrastructure and world-class quality services, makes KAEC the best destination for many local and international investors.”

On his part, Mr. Yousef Banaja, President of Banaja Holdings Group, clarified that choosing the Industrial Valley in KAEC was due to the wide scope of privileges and incentives offered to investors at a regional level. He also commented: “The distribution center will enable us to further strengthen the company’s presence within the healthcare and pharmaceutical sectors through our exceptionally high quality products that will enable the company to satisfy the growing needs of the healthcare sector in the Kingdom. It will also create job opportunities for Saudi youth in the related fields, reconfirming our role in the development of the local community.”

Mr. Banaja recounted the 4 branch companies of the Banaja Holdings Group: “Banaja Medical Company,” “Banaja Pharmaceuticals,” “Banaja Trading Company,” and “Tranzone,” with a capital of 200 million Saudi Riyals.

“Given the fact that it provides direct access to King Abdullah Port, the immense investment opportunities available at the Industrial Valley position it as prime manufacturing and logistics Hub, with access to 250 million consumers in the Arab world and East Africa,” said Mr. Rayan Qutub, CEO of the Industrial Valley in KAEC.

“Even though the pharmaceutical sector in the Kingdom is, by far, the region’s largest, representing about 65 per cent of the entire GCC’s market, the national pharmaceuticals industry covers only about 15 per cent of local demand. Nationalizing the pharmaceutical industry and health care is a strategic priority to achieve the Kingdom’s medical safety,” he said.

Qutub added that “Banaja’s joining of distributors at the Industrial Valley, with its considerable market share in Saudi Arabia, is a strategic addition to the pharmaceuticals industry in KAEC.”

The advanced infrastructure that the Industrial Valley has to offer along with ‘The Village’ project, which provides proper housing to workers and supervisors, are some of its most prominent features.

Qutub pointed out:“ To date, we have attracted a wide range of national and international companies of which 8 are already in operation and 25 others are under construction, focusing on the six industrial clusters: FMCG/foods, pharmaceuticals, logistics, plastics, building materials and the automotive sector.”

He concluded: “IV continues to endure the rapidly increasing demand on lease and freehold industrial lands in its second and third phase of development at a speed beyond expectations where currently infrastructure is being developed for an area that exceeds 25 million sqm to cope with the increased demand.”