RIYADH, 18 June 2007 — In what is described as a pioneering move, an SR1.5 billion closed-stock company has been launched here to promote biotechnology in the Kingdom.
The initiative, announced at a press conference held here yesterday, brings together Rana Investment Co. of Saudi Arabia, BioME of Bahrain and Rentschler Holding GmbH & Co. of Germany in a strategic partnership for identifying and promoting biotechnological projects in healthcare, agriculture, environmental protection and other sectors.
The press conference was attended by Bader Abdulaziz Kanoo, chairman, BioME and Head BU IA, Ahmed Al-Sedhan, director-general, National Industrialization and Technological Program in the Ministry of Commerce and Industry, and Dr. Wieland W.Wolf, head, Strategy Management, Rentschler Holding Co.
Addressing the press conference, Kanoo announced that the three partners had put together SR1.5 billion for the setting up of a closed-stock company, BioSphere, which would act as a developer group in promoting biotechnological projects in the Kingdom. It would be converted into a joint-stock company at a later stage.
Saudi Arabian General Investment Authority (SAGIA), the facilitator of the project, has already licensed the project, besides promoting it in other ways, such as holding press conferences, including this event, which was organized by it.
He said a feasibility study had indicated that such projects could provide 7,500 direct and 10,000 indirect job opportunities for Saudis. He appealed to young Saudi technologists working abroad to lend their expertise to high-tech projects being established in the Kingdom.
Kanoo said BioSphere would also promote projects in the field of life sciences. He, however, declared that they would not support any activity related to cloning or other sensitive issues that could come in conflict with the Shariah regulations.
Sedhan said the Ministry of Commerce and Industry was setting up IT parks and high technology zones in different parts of the Kingdom. Some multinational companies had already moved in, while talks were in progress with others. He assured the government's full support to such ventures. Wolf said his company, a mid-size R&D enterprise, has multi-dimensional relations with academic and research institutions as well as industrial organizations. He could use this network to promote biotechnological projects in the Kingdom.
He said one of the areas with a good market potential was the production of insulin for the treatment of diabetes. Quoting statistics, he pointed out that 20 percent of population in the Gulf states are suffering from diabetes, yet there was no facility in the region for the production of insulin. He disclosed that a German research organization, Raunhofer Association, has expressed its willingness to set up an institute here in a joint venture with a Saudi partner. Wolf said his firm can provide all biotechnological solutions, either through his own company or in tandem with a host of other R & D organizations for the recycling of used oil, plastic, paper and metallic waste as well as other areas relevant to the Kingdom. Another possibility was the production of biopolymer that is fully degradable.