Pharmaceutical market in Saudi Arabia is the largest in the Middle East

Interview with Khalid Abdul-Latif Youssef, Executive Manager of Jamjoom Pharma

First please tell us about Jamjoom Medicine, what is your strategy? And how do you intend to maintain and improve your market leadership?

Jamjoom Medicine was established more than 55 years ago. It has been one of the major players in the healthcare industry. Jamjoom Medicine was the first member of the Jamjoom Pharmaceutical Group. Our strategy to preserve and improve the market leadership has always been built around establishing a successful partnership with our suppliers, through mutual business respect, understanding and a focus on customers’ needs.

How would you characterize the pharmaceutical industry in Saudi Arabia? What is the outlook for the sector?

The pharmaceutical market in Saudi Arabia is the largest in the Middle East. It represents 65% of the GCC market. The outlook for growth for the next 10 years, in the Saudi Arabia pharmaceutical market is very positive. The total pharmaceutical market is about USD 6.7 billion. We have a 3.2% market share. The Saudi pharmaceutical market is set to achieve a steady growth with a compound average growth rate of 8.7% until 2018. Pharmaceutical spend per capita in Saudi Arabia is around USD 230.

Can you tell us how much the sector is growing?               

As I mentioned before, the total pharma market is expected to keep growing at an average of 8.7% until 2018. By the end of 2014, the market was growing by almost 10%. Our company was growing by 19%., which was the 2nd highest growth. If you look at average compound growth, we are again showing the 2nd highest growth.

What are the strategies you want to utilize to become the market leader?

We are very keen to consider our staff as our partners. We want them to share in our success. That is why we want to improve our staff and upgrade their capabilities. The main strategy is to drive their future success. Secondly, we are working to create a state of the art distribution network. Thirdly we are working towards capturing a good share of the Saudi healthcare market. We also work towards maintaining a good relationship with our suppliers.

What is your vision for the company and where would you like to take it under your leadership?

Our 5 year strategic goal is to become one of the top 5 distributors in the Saudi market, in the next 3 years. As we become a leader in the pharma business, our goal is to also become a leader in food supplements and the OTC (Over the Counter) business.  We would also like to have a presence in all the GCC states.

How difficult is it to do business in Saudi Arabia? What are the major challenges?

I don’t like to use the term ‘difficult’. I prefer to use the term ‘challenge’. We like to convert challenges to opportunities. One of these challenges is keeping business partners satisfied. For example, local business partners like hospital chains and street pharmacies always constantly require us to come up with better, more innovative ways. Another business relationship is with our suppliers. We have to keep them satisfied to get a better market share.

What is your point of differentiation from your competitors? Where can you add value and compete better?

I can easily summarize our main power point by simply saying that we always think outside the box. We are always trying to find innovative ideas to guarantee better customer care.

Can you tell us something about Jamjoom, the company itself and the group?

Jamjoom Pharmaceuticals was started about 55 years ago. It forms the nucleus of the pharmaceutical group. About 15 years ago, the owners decided to build their own facility, because of their excellent understanding of the industry. They built a state of the art manufacturing facility. The products from this facility are now exported to about 40 countries across the Afrasia region.

How long have you worked for the company?

Thirty years.

Are you from Saudi Arabia?

No I am Egyptian.

Tell us about your career pathway please especially with Jamjoom?

Yes. I was the Area Manager for the Eastern area for more than 20 years. I then moved here to head office, when Sheikh/ Youssef Jamjoom selected me to take over. He passed on the responsibility of managing the company to me. During the last 9 years, there have been big improvements in our company. Our turnover has almost tripled in the last 3 years.

How important is the pharmaceutical company within the group? Is it one of the biggest?

Yes it is very important.

Is pharma about 60% of the group?

In Saudi IMS, our sister company, Jamjoom Pharma has a very good position. It is placed at number 6, in the top ten. It is ranked 6 among 272 companies.

What percentage of the Jamjoom group is pharma? About 50%?

It’s more than 50%. The pharma business represents a large part of the group’s business.