NEOM and WuXi AppTec Sign Strategic Partnership to Establish Pharmaceutical Manufacturing Hub in Saudi Arabia
Key Insights
NEOM (search) has signed a strategic memorandum of understanding with WuXi AppTec to explore localization of pharmaceutical research, development and manufacturing capabilities in Saudi Arabia.
The partnership aims to create world-class CRDMO facilities at Oxagon, NEOM (search)'s advanced manufacturing city, supporting Saudi Arabia's economic diversification and biotechnology ambitions.
This collaboration represents a significant step forward in advancing the Kingdom's National Biotech Strategy as part of Saudi Vision 2030.
NEOM (search), the sustainable region taking shape in northwest Saudi Arabia, has signed a strategic memorandum of understanding (MoU) with WuXi AppTec, a leading global pharmaceutical contract research, development and manufacturing organization (CRDMO), marking a significant advancement in the Kingdom's biotechnology sector.
Strategic Framework for Pharmaceutical Localization
Under the terms of the agreement announced on October 28, 2025, a collaborative framework will be established between the two entities to explore the localization of pharmaceutical research, development and manufacturing capabilities in Saudi Arabia. The long-term intention of the collaboration is to create world-class CRDMO facilities at Oxagon, NEOM (search)'s advanced and clean manufacturing city, or other locations in Saudi Arabia.
The partnership represents a meeting of minds between WuXi AppTec, a global leader with decades of experience in enabling biopharmaceutical innovation, and NEOM (search), an essential element of Saudi Vision 2030 and key enabler of the Kingdom's bold National Biotech Strategy.
Alignment with National Economic Goals
In support of Saudi Arabia's economic diversification and innovation strategies, the MoU represents a significant step forward in advancing the Kingdom's biotechnology ambitions and reflects a mutual commitment to driving long-term growth in pharmaceuticals and healthcare.
By aligning world-class expertise with national goals, the partnership between NEOM (search) and WuXi AppTec aims to create the conditions for advanced manufacturing and sectoral growth that will serve both regional and global markets. The agreement leverages NEOM's advanced and clean manufacturing facilities at Oxagon, while also reinforcing WuXi's world-class capabilities to build a thriving biotech ecosystem.
Global Collaboration Standards
Working together, the two parties aim to redefine business and chart new pathways that not only serve the Kingdom's long-term targets but also set a new benchmark for global collaboration in pharmaceutical innovation. The partnership seeks to cultivate conditions for advanced manufacturing and sectoral growth that will benefit both regional and global markets.
Financial Infrastructure Support
NEOM (search)'s pharmaceutical ambitions are supported by substantial financial backing. In January 2025, NEOM finalized a landmark export credit agency (ECA) financing transaction with Italy's SACE (search), securing approximately $3 billion through a long-term multicurrency untied facility. This agreement represents NEOM's inaugural corporate ECA financing and is the largest untied financing ever guaranteed by SACE.
The arrangement with the Italian insurance and financial group is backed by a syndicate of nine international banks: HSBC (search), Banco Bilbao Vizcaya Argentaria (search), Bank of China (search), Crédit Agricole CIB (search), Agricultural Bank of China (search), Citi (search), China Construction Bank (search), J.P. Morgan (search), and Bank of America (search). This partnership will enable NEOM (search) to tap into resources from Italian businesses, particularly small and medium-sized enterprises (SMEs), to facilitate the project's development across essential sectors, including infrastructure, urban development, construction, and transportation.
To date, Italian suppliers and contractors have contributed to NEOM (search) on multiple projects, with contracts valued at $6.3 billion, and this agreement aims to further enhance and cultivate these vital international business relationships.