RIYADH, 5 November 2007 — Saudi Arabia will begin quoting the prices for imported medicine in Saudi riyals from Feb. 1, 2008. The change is an attempt by the government to stabilize medicine prices in the Kingdom and avoid price fluctuations in the market.
Minister of Health Hamad Al-Manie announced yesterday that the procedure was due to the ministry having noticed a fluctuation in prices of medicines as a result of the exchange prices against the Saudi riyal and he added that this fluctuation “harms citizens. By adopting these procedures, the ministry intends to stabilize 60 percent of prices of medicines registered in Saudi Arabia,” the minister said. “We have been asked by King Abdullah to find every possible way to reduce the financial burdens on citizens.”
According to the new directive, all medicines in Saudi Arabia which were registered more than five years ago will be reduced by one percent per year after the specified date. However, the prices of imported medicines which are “important and have no alternatives” will not be reduced. Certain exceptions will be considered by the ministry.
The ministry also said that all new medicines being manufactured abroad, as well as their alternatives, which are cheaper than SR20 will not be reduced. “Pharmaceutical companies which do not abide by the ministry’s directives on the specified date will be fined and punished,” the minister added.
The minister said that inflation in Saudi Arabia had affected all merchandise. He pointed out that before the directive was announced, consultations were held with other ministries, law firms and others. The minister said the ministry was keen that traders not be harmed as a result of the directive.
Al-Manie said all medicines sold in Saudi Arabia were tested in the ministry’s laboratories before being licensed. “The Kingdom of Saudi Arabia is among the most stringent countries in the world when it comes to providing quality medicine,” he said. “There are even Saudi pharmaceutical companies which have been shut down after we have noted a deficiency in quality.”
Regarding medicines that are being withdrawn from the Kingdom’s pharmacies, the minister said that even when the medicines were withdrawn, there were always alternatives to them.
