Jamjoom Pharmaceuticals (Jamjoom Pharma), listed on the Saudi Stock Exchange, announced a new strategic step aimed at establishing its foothold in the North African market, through its joint venture in Algeria, Jamjoom Algeria Pharmaceuticals, signing an offer to issue a Standby Letter of Credit (SBLC) with Netexis Algeria Bank.
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company revealed that the total value of the letter of credit is 2.250 billion Algerian dinars, equivalent to approximately 64.88 million Saudi riyals. As part of its commitment to supporting this project, in which it holds a 49% stake, Jamjoom Pharma provided an institutional guarantee to the bank covering its proportional share in the project.
Under this agreement, the company will guarantee an amount of 1.102 billion Algerian dinars (approximately 31.795 million Saudi riyals), with this guarantee extending until January 15, 2026, in accordance with applicable Algerian laws. This banking facility is primarily intended to finance the medium-term working capital requirements of Jamjoom Algeria, thereby ensuring the continuity of operations and enhancing the plant's production capacity.
Transparency and stakeholders
In the context of disclosure and transparency, the company noted that Jamjoom Algeria is considered a related party due to the direct and indirect interests of its board members. Mahmoud Yousef Jamjoom and Ahmed Yousef Jamjoom have a direct interest by virtue of their board membership in the Algerian company, while Waleed Yousef Jamjoom, Mohammed Yousef Jamjoom, and Alaa Yousef Jamjoom have indirect interests. This disclosure is required in accordance with the regulations of the Capital Market Authority.
Strategic expansion and the Saudi pharmaceutical industry
This move aligns with the overall strategy for the pharmaceutical industry in Saudi Arabia, a key pillar of Vision 2030 and the National Industrial Development and Logistics Program (NIDLP). Leading Saudi companies like Jamjoom Pharma aim not only to expand beyond the domestic market but also to promising regional markets, thereby boosting non-oil exports and sharing Saudi expertise in high-quality pharmaceutical manufacturing internationally.
The importance of the Algerian market and bilateral relations
This investment is particularly important given the size of the Algerian market, which is one of the largest pharmaceutical markets in Africa and the MENA region. Algeria has adopted government policies that encourage the localization of the pharmaceutical industry and reduce the import bill, making the "Jamjoum Algeria" project a crucial pillar in meeting local healthcare needs in Algeria.
This funding also reflects the depth of the growing economic relations between the Kingdom of Saudi Arabia and the Republic of Algeria, as recent years have witnessed mutual investment activity and a shared desire to enhance trade exchange and industrial partnerships, opening up broader horizons for Saudi companies to benefit from investment opportunities in North Africa.
