Saudi's NUPCO Lands $667M Financing to Expand Healthcare Logistics

Fahad Al-Shebel, NUPCO CEO

Saudi Arabia’s National Unified Procurement Co. (NUPCO) has secured financing agreements totaling SR2.5 billion ($667 million) to enhance its healthcare supply chain. The agreements, made with prominent financial institutions such as Banque Saudi Fransi, Abu Dhabi First Bank, and Tameed, are designed to provide healthcare suppliers with better access to capital, supporting the growing demand for medical supplies across the Kingdom.

Khalid Al-Ghamdi, Chief Commercial Officer at NUPCO, explained that the partnership with Banque Saudi Fransi, worth SR500 million, will help finance the healthcare supply chain, benefiting suppliers directly. Another agreement with Abu Dhabi First Bank, valued at SR1 billion, will provide financing options to overcome challenges faced by suppliers. A third agreement with Tameed, also for SR1 billion, is targeted specifically at small and medium enterprises (SMEs) in the healthcare sector.

NUPCO, originally focused on serving public hospitals, is now expanding its services to include the private healthcare sector. Al-Ghamdi highlighted that NUPCO’s healthcare logistics and digital solutions are now available to private hospitals, clinics, and SMEs, responding to the growing need for comprehensive healthcare services in both the public and private sectors.

A key part of NUPCO’s expansion is the upcoming launch of a digital healthcare marketplace, set to debut by the end of the first quarter of 2025. This platform will allow private clinics and SMEs to purchase medical equipment and supplies while accessing tailored financing solutions, simplifying the procurement process and supporting healthcare providers in improving patient care.

The financing agreements form part of NUPCO’s broader strategy to improve the healthcare sector’s logistics and procurement infrastructure. NUPCO, a subsidiary of Saudi Arabia’s Public Investment Fund, is playing a vital role in the country’s Vision 2030 initiative by optimizing the distribution of medical supplies nationwide.

In addition to these agreements, NUPCO has established partnerships with global logistics firms, including DHL, SMSA, and UPS, to expand and strengthen the distribution network for medical supplies. The company has also collaborated with the Saudi Authority for Industrial Cities and Technology Zones (MODON) to enhance logistics capabilities and infrastructure.

NUPCO’s efforts align with Saudi Arabia’s broader economic goals, particularly the Vision 2030 objectives of diversifying the economy and supporting local businesses. The company’s logistics network currently supports over 300 hospitals and 2,500 clinics, ensuring that 97% of the country has access to essential medical supplies.

Looking forward, NUPCO is preparing for further growth, with plans to develop two advanced warehouses by 2026 to meet rising healthcare demands. With a distribution network covering more than 2,600 delivery points and a delivery window of just 8 hours within a 100-km radius, NUPCO continues to enhance its efficiency and reliability in serving healthcare providers across Saudi Arabia.

Source: The Supply Chain Report