From laboratories and research centers to investment rooms and international partnerships, the economic role of health research in Saudi Arabia is expanding as the sector becomes one of the paths of economic diversification. Research that is based on the needs of patients in the Kingdom, supported by the expansion of the health infrastructure and the acceleration of the adoption of artificial intelligence and medical technologies, has come to represent a bridge between developing care, attracting international companies, and localizing knowledge. With investment opportunities estimated at approximately 330 billion riyals ($88 billion) in the health sector system until 2030, a new space is being formed for medical research to become one of the components of a health economy based on innovation, partnerships and technology transfer.
This transformation comes at a time when Saudi Arabia is redrawing the features of its health system within “Vision 2030”, by moving from a model that focuses on providing treatment to a more comprehensive system that combines prevention, improving the quality of life, developing health services, and benefiting from modern technologies. The “Health Sector Transformation Program” leads this path by developing hospitals, health care centers and ambulatory services, promoting digital transformation, and raising the efficiency of access to and quality of services, thus opening the way for the private sector and international companies to participate in building health capabilities and developing solutions and technologies that suit the needs of the local market.
In this context, the head of the scientific committee at the annual scientific conference of the Saudi Cardiac Catheterization Society, Dr. Salem Asiri, confirmed in a statement to Asharq Al-Awsat that health specialties, including cardiac interventions, are witnessing rapid development in recent years, pointing out that many cases that required surgical intervention or for which treatment options were not available in the past can now be treated through interventional cardiac catheterization, stressing that investment in health research is an economic lever that attracts international companies to the Kingdom.
Modern technologies
In his speech during the Saudi International Conference on Cardiac Interventions, Asiri explained that the latest technologies in the field of treating coronary artery diseases and valve implantation have become available in the Kingdom, stressing that the specialized centers in Saudi Arabia are keen to provide modern technologies as soon as they obtain the necessary approvals from regulatory authorities, including the US Food and Drug Administration, the Saudi Food and Drug Authority, and relevant international bodies, ensuring their availability to patients in the Kingdom according to the highest medical standards.
Regarding the importance of specialized conferences in this field, Asiri stated that their importance lies in bringing together international and Saudi experts under one roof to exchange experiences and discuss the latest scientific findings in the field of cardiac catheterization and valve implantation.
Artificial intelligence
He said that Saudi medical competencies are no less than their international counterparts, pointing out that these meetings represent an important opportunity to benefit from advanced expertise in the fields of artificial intelligence and modern medical technologies, in addition to discussing research related to patients and the health system in the Kingdom.
He added that the next stage will witness an expansion in conducting studies and research that start from the local health environment and address the needs of patients in the Kingdom, pointing out that there are studies currently being worked on, and it is expected that other studies will be launched from the region during the coming period.
Asiri stated that the conference is not limited to scientific and medical aspects, but rather includes dialogue sessions that bring together specialists and decision-makers from health and regulatory bodies, along with representatives of government and private health centers and insurance companies.
“Vision 2030”
According to Asiri, this partnership has become a necessity in light of the transformation that the Kingdom is witnessing within the goals of “Vision 2030,” stressing the importance of the health sector being part of this economic movement. The conference aims to exchange experiences and knowledge, support continuing medical education, and encourage scientific research and innovation, which contributes to developing the quality of health care, improving medical services, and enhancing the Kingdom’s position in the medical and research fields.
The conference is organized by the Saudi Cardiac Interventional Society, which works to develop the specialty in the Kingdom by supporting medical training and education, encouraging scientific research, and enhancing cooperation between doctors and medical authorities locally and internationally, which contributes to improving the results of treating heart patients and improving health services in the country.
Investors' appetite is turning towards liquidity again, as geopolitical tensions escalate, bond markets decline and inflation fears return to the fore. Global money market funds attracted $46.1 billion during the week ending September 2, the largest weekly inflow since August 5, while flows to bond funds slowed and investors turned more to short-term debt instruments.
The United States launched strikes on Iranian military targets near the Strait of Hormuz, while Tehran announced that it targeted American assets throughout the region. Brent crude rose to $97.62 per barrel, its highest level in about a month and a half, which increased concerns about inflation.
Concerns about interest rates also returned to the forefront after Federal Reserve Chairman Kevin Warsh said last week that the central bank would have “work to do” if policymakers were not convinced that core inflation was heading to return to its 2 percent target.
In contrast, global equity funds recorded net inflows of $6.65 billion, exceeding net withdrawals of $6.13 billion in the previous week.
Investors pumped a net $13.09 billion into European stock funds and $4.22 billion into Asian stock funds, while they withdrew about $11.12 billion from US stock funds.
Global sector funds recorded net withdrawals worth $2.62 billion, as investors ended a two-week wave of flows into technology funds with net sales amounting to $856 million. Financial and industrial sector funds also witnessed large withdrawals of $1.35 billion and $484 million, respectively.
Net inflows to global bond funds slowed to $10.01 billion, the lowest level in five weeks, although short-term bond funds attracted $7.43 billion, recording their largest weekly inflow since July 8, according to “LSEG Lipper” data.
Mutual funds also attracted inflows of $1.08 billion, while government and corporate bond funds recorded net withdrawals of $3.34 billion and $1.41 billion, respectively.
In the commodities sector, gold and other precious metals funds continued to attract investors for the eighth week in a row, with inflows amounting to $2.85 billion. In contrast, energy funds recorded a third consecutive week of withdrawals worth $232 million.
In emerging markets, investors extended their series of purchases in equity funds to eight consecutive weeks, with net inflows amounting to $1.99 billion. They also added $646 million to bond funds, according to data that included 28,994 funds.
US stock funds
In the details of US stock funds, they recorded outflows for the second week in a row, and investors withdrew a net $11.12 billion from US stock funds in the week ending September 2, compared to net outflows of $22.72 billion in the previous week, according to “LSEG Lipper” data.
Bond yields and oil prices witnessed a noticeable rise earlier this week. However, the strong results of NVIDIA and Dell Technologies indicated continued strength in spending on artificial intelligence and related trading in the markets.
US large-cap equity funds recorded net outflows of $7.52 billion, down from net sales of $24.73 billion the previous week. Mid-cap equity funds saw outflows of $572 million, while small-cap equity funds recorded outflows of $1.83 billion.
Sector funds recorded net sales of $3.48 billion during the week, led by the technology, financials and industrials sectors. Net outflows from the technology sector amounted to $1.39 billion, followed by the financial and industrial sectors, amounting to $1.31 billion and $620 million, respectively.
US bond fund flows fell to their lowest level in five weeks, recording $4.27 billion during the week, with continued demand for government bond funds and short- to medium-term Treasury bonds, which attracted $4.53 billion.
Short to medium-term investment-grade bond funds and loan participation funds also attracted significant inflows of $1.53 billion and $990 million, respectively.
Money market funds attracted about $48.76 billion, recording the highest level of inflows in four weeks.
US Treasury bond yields and the dollar rose, while the Standard & Poor's 500 index fell slightly on Friday, after job growth in the United States showed an acceleration in August, while the unemployment rate stabilized.
The monthly report indicates that the labor market remains stable, which has strengthened expectations that the US Federal Reserve will raise interest rates later this month, while investors are awaiting consumer inflation data scheduled for release next week as a major factor in determining the central bank’s decision.
The number of non-farm jobs increased by 162,000 jobs last month, after a rate of increase to 21,000 jobs in July. Economists polled by Reuters had expected an increase of 56,000 jobs, after previous data showed a decrease of 23,000 jobs in July.
The 10-year US Treasury bond yield, the benchmark yield, rose by 1.21 basis points to 4.774 percent in the latest trading. It had reached 4.792 percent immediately after the report was issued. The two-year bond yield also reached its highest level since January 2025.
“From the Fed’s perspective, the labor market is still holding up, which means inflation remains the biggest problem,” said Brett Kenwell, US investment analyst at eToro in New York.
He added: “Next week’s consumer price index data will be closely followed, as the Federal Reserve’s decision on interest rates approaches in mid-September.”
Short-term interest rate futures indicate a probability of about 65 percent for a rate hike at the Federal Reserve meeting scheduled for September 15-16, up from about 55 percent before the report was released.
Oil prices fall and the dollar rises
Oil prices have fallen from their recent high levels. Renewed attacks this week in the war between the United States and Iran have sent oil prices soaring, adding to already existing concerns about rising costs.
US crude fell 1.6 percent to $89.87 per barrel, while Brent crude fell 1.3 percent to $94.26 per barrel.
The Dow Jones Industrial Average fell 98.46 points, or 0.19 percent, to 53,587.65 points, the Standard & Poor's 500 Index fell 6.06 points, or 0.08 percent, to 7,741.65 points, while the Nasdaq Composite Index rose 17.02 points, or 0.06 percent, to 26,601.08 points.
The MSCI World Stock Index rose 1.02 points, or 0.09 percent, to 1,155.76 points, while the European Stoxx 600 Index rose 0.04 percent.
The dollar index, which measures the performance of the US currency against a basket of currencies that includes the yen and the euro, rose 0.2 percent during the day. The Japanese yen briefly fell 0.41 percent to 156.45 yen to the dollar, before the dollar almost stabilized against the yen in the latest trading.
The spot gold price fell 1.2 percent to $4,418.09 per ounce.
