[Edaily Marketin, Reporter Soyoung Park ] The global investment banking (IB) industry is turning its attention to the Middle East, home to a host of the world’s largest sovereign wealth funds. “Oil Drive” is a series covering news from the Middle Eastern investment market. It covers stories of global investment firms diving into “oil money” as well as news from the Middle East itself, where countries are seeking to move away from oil dependence and focus on investments in new technologies. It also reports on Korean companies attracting investment from Middle Eastern capital. [Editor’s Note]

After an eight-hour bus ride from Riyadh, the capital of Saudi Arabia, they arrived in Doha, Qatar. From there, they boarded a plane and flew for about 10 hours before setting foot on Korean soil. This is the story of officials from the Saudi Food and Drug Authority (SFDA). They recently visited South Korea to engage with promising Korean companies and expand business cooperation opportunities between the two countries.

Attention was focused on the Saudi SFDA’s decision to proceed with the visit despite the looming threat of war in the Middle East and North Africa (MENA) region due to the U.S.-Iran conflict. The industry assessed that this visit demonstrates Saudi Arabia’s commitment to continuing cooperation with Korean companies, regardless of the political situation in the Middle East.

On the 3rd, Kiwoom Securities hosted a roundtable discussion with Saudi regulatory officials at TP Tower (Seoul Hall of the Private School Pension Fund) in Yeouido, inviting representatives from domestic food, pharmaceutical, and medical device companies. The event aimed to support these companies’ entry into the MENA region and facilitate local business cooperation. This is seen as an effort by Kiwoom Securities to leverage its network in the financial investment industry to connect domestic companies with local institutions.

Attendees at the event included the head of the Saudi Food and Drug Authority, executives in charge of investment and development, and the Commercial Attaché from the Saudi Embassy in South Korea. Approximately 50 representatives from domestic pharmaceutical, biotech, and medical device companies hoping to enter the local market were also present. The event was moderated by Kim Young-il, Director of the Global Investment Division at Ewha Asset Management. Director Kim has been advising domestic companies on their expansion into the Middle East.

“Although Saudi Arabia faces the threat of conflict, its commercial sector continues to grow vigorously,” said Kim. “As South Korea is emerging as an alternative investment destination amid turmoil in Europe and uncertainty in the U.S., Saudi officials are eager for Korean companies to enter the local market.” He added, “I recommend carefully selecting Saudi corporate partners before entering the market.”

On that day, Saudi officials outlined their plan to expand the scope of cooperation with South Korea beyond the current level of imports and exports to include △joint research and development (R&D), △localization of production, and △the establishment of joint ventures (JVs).

Hisham Al-Jadai, Commissioner of the Saudi Food and Drug Authority, introduced Saudi Arabia’s ongoing national biotech strategy and expressed the country’s ambition to become a leading biotech nation in the MENA region by 2030. Saudi Arabia has also set a goal of becoming one of the world’s top 10 biotech nations by 2040. Key areas for development include △vaccines, △genomics, and △biosimilars.

Saudi Arabia is also expanding its production capacity in the pharmaceutical and medical device industries. He explained that the number of local manufacturers has more than doubled since the COVID-19 pandemic. He added, “Clinical trials have also been increasing rapidly in recent years,” noting that “as we build up our R&D and manufacturing capabilities, there is a growing demand to collaborate with foreign companies.”

Saudi officials advised South Korean companies not to wait until just before product registration but to communicate with local regulatory authorities from the early stages of development. This is because they can provide guidance on the appropriate procedures based on the product’s development stage and the current regulatory landscape.

For example, according to Saudi officials, a program is in place to support the development and review of innovative new drugs for companies in the pharmaceutical sector. Additionally, a system has been established to facilitate the rapid development of treatments for rare diseases. In the medical device sector as well, mechanisms such as an innovative technology review pathway, a regulatory sandbox, and a priority review system are in place.

On that day, Saleh Al-Hammadi, the Korean representative of the Saudi Al-Asa Chamber of Commerce and Industry and a professor at Yeungnam University, highlighted examples of public-private cooperation between the two countries. He is the only Saudi national currently serving as a professor in Korea. Specifically, he shared the case of UXN, a Korean company specializing in non-invasive blood glucose monitors, which successfully entered the Saudi market through a collaboration with King Faisal University in Saudi Arabia.

He explained that the Al-Ahsa Chamber of Commerce plays a role in supporting Korean companies’ entry into the Saudi market. He also stated that the chamber aims to provide opportunities to help Korean companies connect with local firms to establish partnerships or joint ventures. He emphasized, “We will help Korean companies use the Al-Ahsa Forum as a springboard for entering the Saudi market in the near future.”

Meanwhile, as part of his visit to South Korea, Hisham Al-Jadai, Commissioner of the Saudi Food and Drug Authority, will meet directly with representatives from publicly traded companies such as Hanmi Pharmaceutical, Green Cross, Alteogen, Lisense Medical, and Hempharma. He also plans to meet with representatives from privately held companies including UXN, Sears, and Purple AI. Al-Jadai envisions that these meetings will strengthen the cooperative framework between domestic pharmaceutical and biotech companies and local authorities.