B. R. Shetty, managing director and CEO of Neopharma, a pharmaceutical manufacturing company based in Abu Dhabi, United Arab Emirates, has signed an agreement with Prince Turki bin Mohamed bin Nasser, in charge of  the Jazan Industrial City in southwestern Saudi Arabia, and Shaikh Mohammed Rafik, chairman of Gammon Group, an engineering and construction firm, to establish a pharmaceutical plant in Jazan Industry City.

Under the agreement, Shetty will hold a 65% stake in the project, Prince Turki 25%, and Gammon 10%. As per the agreement, Prince Turki will assist Neopharma in procuring a license and other legal compliances from the government of Saudi Arabia for the running of the pharmaceutical manufacturing and processing plant. Gammon will be responsible for providing assistance to Neopharma in doing documentations and related compliance needed for the establishment of the pharmaceutical plant in Jazan.

The Middle East-based Gammon, which is engaged in diversified projects, has been legally appointed by Prince Turki as an authorized representative to initiate discussions with companies, groups, or individuals to establish their branches or new industrial, commercial, or residential business ventures in Jazan.

Saudi Arabia is inviting major international companies to invest in the new industry city in the southern Jazan region by offering soft loans worth 75% of the project cost. Developed by the Gammon Group, the proposed city is expected to attract investments worth SR 75 billion ($20 billion). To date, the project has secured participation from companies in Canada, Malaysia, and India to establish factories in pharmaceuticals, iron and steel, cement, tires, and copper.

Source: Neopharma