RIYADH, 17 March 2004 — Saudi Arabia has sanctioned an increase in the price of imported drugs caused by the strong euro.
Dr. Abdul Aziz Niaz, director of licenses at the Ministry of Health, said Health Minister Dr. Hamad Al-Manie modified the official MOH euro standard to SR4.05 from SR3.72.
The rise of the euro against the US dollar has been putting pressure on importers over the past nine months.
Sultan ibn Sultan, the president of the medical committee of the Riyadh Chamber of Commerce & Industry, said the modifications would benefit the public since they will provide incentives for importers. He added that he expected a nine percent increase in the price of European medicines.
Sources said the delay in adjusting the price of imported drugs by the Ministry of Health led many traders to delay the signing of new contracts.
The benchmark for the price of imported drugs in Saudi Arabia is based on drug pricing in more than 30 countries plus the cost of transportation and insurance.
Eighteen to 20 percent of drugs are locally produced, 65 percent of medicines are European or American, and the rest are from Asian or Arab countries.
The Ministry of Health has made it a condition for international drug firms that wish to do business in the Kingdom that they provide technical and scientific support for doctors here.
