Read the Conversation
Meeting Highlights:
- Unified Voice for the Private Sector: The U.S. Chamber of Commerce acts as a cohesive voice for the private sector, facilitating dialogue and collaboration between U.S. and Saudi businesses.
- Saudi Arabia's Economic Growth: Saudi Arabia is recognized as one of the fastest-growing programs within the U.S. Chamber of Commerce's International Division, and its size is second only to India, with the program having a strong emphasis on economic diversification.
- Priorities: Key priorities include enhancing dialogue, focusing on trade, and increasing partnerships and collaborations to support economic growth.
- Economic Diversification: Saudi Arabia aims to reduce its dependence on oil through Vision 2030, and position itself as a healthcare hub at a global level.
- Healthcare Hub: The country is emerging as a healthcare hub with a significant presence of American companies, contributing to its growth.
EF: What are your current priorities in terms of investment in Saudi?
LC: The U.S. Chamber of Commerce is best known domestically for its extensive lobbying and advocacy efforts with the U.S. government, including the President, the White House, Congress, and various federal agencies. We serve as the primary representative of American businesses, advocating on their behalf. With a network encompassing over three million businesses, we are the largest business advocacy organization in the world, dedicated to supporting U.S. business interests. Beyond our domestic work, the Chamber has a significant international presence. We engage with over 80 countries, ensuring that wherever U.S. businesses operate, they receive support in navigating the global market. While U.S. business remains strongest domestically, a key aspect of our role is promoting American business practices, products, research, and innovation worldwide.
To achieve this, we have established bilateral business programs in multiple countries, representing U.S. companies investing abroad. Our goal is to foster a favorable business environment for foreign investment while contributing to economic growth in host countries and strengthening bilateral economic relationships with the United States.
Regarding Saudi Arabia, which is where I focus most of my time, the Chamber has a robust Middle East program, with business initiatives spanning the entire region. Among these, Saudi Arabia stands out as our most dynamic and rapidly expanding program. It has seen the highest influx of U.S. businesses exploring investment opportunities, particularly since the launch of Vision 2030 in 2016.
The economic transformation in Saudi Arabia over the past few years has been remarkable. The country has evolved significantly since the introduction of Vision 2030, which aims to diversify the economy beyond its traditional reliance on oil and gas. By fostering a research-driven economy, Saudi Arabia is positioning itself for sustainable growth across multiple industries.
Saudi Arabia’s historic presence has been well established internationally, and they have ambitious plans for economic growth, with healthcare being a major focus. At the Chamber, our Saudi program has grown to become the second largest, following India. India has long been a key market due to the presence of numerous multinational corporations that have expanded there over the years. However, Saudi Arabia is now experiencing a surge in momentum. Every week, I speak with an increasing number of companies—some already established in Saudi Arabia and looking to expand further, others exploring entry into the market for the first time.
The enthusiasm and activity in Saudi Arabia are remarkable, making it an attractive and relatively straightforward market to engage with, as businesses are eager to invest and grow there.
Now, shifting the focus to healthcare. I work across various industries, and our Saudi program engages with companies spanning the entire economy. We currently collaborate with nearly 150 U.S. companies in Saudi Arabia. Among these, healthcare stands out as one of the main sectors we support, although we are active in many other industries as well. Oil and gas as well as digital industries, are significant, with many companies actively working in these sectors. However, healthcare represents one of the largest shares of the companies we work with. I would estimate that at least 25% of the 150 companies in our Saudi program are engaged in healthcare in some capacity.
Within this sector, a substantial number of companies are focused on the pharmaceutical and innovative biopharmaceutical industries. Additionally, we support MedTech companies, hospitals, and manufacturing firms that help establish production facilities. Healthcare is undoubtedly a major component of our work in Saudi Arabia.
There is a great deal of enthusiasm surrounding healthcare in Saudi Arabia. To their credit, the country is making significant strides in developing a truly innovative healthcare ecosystem. They have been actively reforming their broader business environment to create a more accessible and attractive market for foreign companies, with healthcare being a key focus.
For years, healthcare investment in various countries has largely revolved around establishing a local presence—bringing in more products, setting up manufacturing facilities, and so on. However, in Saudi Arabia, there is an increasing emphasis on expanding beyond these traditional areas. The focus is now shifting toward enhancing research and development, advancing clinical trials, fostering university partnerships, and positioning the country as both a research hub and a healthcare hub capable of exporting services and expertise to other markets.
Beyond facilitating dialogue and supporting business growth, a significant part of our work involves addressing challenges that companies face. There are always regulatory and market-related issues that can make entry more difficult, discourage investment, or even threaten existing operations if certain policies are implemented.
Because we represent a large number of companies, we advocate for the private sector by providing a unified and cohesive voice on critical business concerns. As an entirely private-sector organization, independent of any government affiliation, we can effectively engage on behalf of businesses to navigate and resolve these challenges.
EF: What opportunities and challenges do you identify for 2025
LC: Our top priority is to support the expansion of U.S. investment and corporate presence in Saudi Arabia. When visiting the Kingdom, it is clear that U.S. companies remain the gold standard. While there are discussions about diversification, Saudi decision-makers continue to prioritize U.S. businesses, products, and business culture.
The strength of U.S. companies lies in their approach to research, innovation, and life sciences, which serves as a benchmark for developing Saudi Arabia’s healthcare ecosystem. Our role is to enhance dialogue, ensuring that Saudi regulators and policymakers recognize what is working, how effective policies are driving growth, and where adjustments can be made to further improve the investment climate.
At this moment, this mission is particularly relevant and timely. With a new U.S. administration in place, there is renewed attention on trade, though some policy directions remain uncertain. However, this administration has a history of strong trade relations with Saudi Arabia, and there is significant goodwill at the highest levels of both governments.
Already, discussions of a potential U.S. presidential visit to Saudi Arabia have surfaced, which could lead to major announcements and new agreements. Additionally, recent statements regarding increasing Saudi investment in the U.S. to $1 trillion highlight the potential for substantial growth in the bilateral relationship.
To ensure the business community has a strong voice in this evolving partnership, we are actively engaging with key stakeholders. A significant number of Saudi ministers are expected to visit the U.S. after Ramadan, following recent visits for major events like the FII conference in Miami. We anticipate high-profile visits, including from the Minister of Health, who previously expressed plans to travel to the U.S.
There are also discussions about a roadshow that would take Saudi officials beyond Washington, D.C., where many key representatives and policymakers are based. They are expected to visit Boston for the BIO International Convention in June, where they will have the opportunity to engage with leading biopharmaceutical companies and visit R&D centers.
Beyond Boston, expanding these visits to innovation hubs such as Seattle and Silicon Valley would provide deeper insights into cutting-edge healthcare advancements. These engagements will allow Saudi officials to explore how U.S. companies operate and assess opportunities to bring similar models to Saudi Arabia.
In addition to fostering these high-level interactions, we will also facilitate key meetings between U.S. businesses and visiting Saudi officials, including those from the Ministry of Health and the Saudi Food and Drug Authority (SFDA), which plays a crucial role in healthcare regulations. Depending on interest, organizations like NUPCO may also participate in discussions related to procurement and the tendering process.
High level Saudi visits present significant opportunities to strengthen these dialogues and address challenges that companies are facing. These are common global issues, such as increasing local presence and boosting foreign direct investment. There are also mandates for reinvestment and pricing concerns, particularly for pharmaceutical and medtech companies, as well as intellectual property rights—issues that persist worldwide.
These challenges have existed in Saudi Arabia for some time, and there has been extensive dialogue on them. However, with strong enthusiasm at the highest levels, there is hope for meaningful progress that will help facilitate more deals.
EF: What are your expectations for these bilateral relations, and what outcomes can we anticipate? As someone at the forefront representing the business community, how do you see this translating into more deals in the future?
LC: That is the key question and ultimately our goal—to ensure these discussions translate into tangible outcomes. It is easy to have strong rhetoric and positive statements at the highest levels, but the real measure of success is actual investment, real operations on the ground, and financial commitments. The focus should be on making that a reality.
I do not see enthusiasm slowing down; if anything, it continues to grow. More companies are showing interest in entering the Kingdom, and the key to converting this momentum into concrete investments will partly depend on how well Saudi Arabia communicates its story. While reputational concerns and existing narratives among U.S. companies have been a challenge in the past, progress is being made in shifting perceptions.
Saudi Arabia has significantly improved its regulatory environment, making it easier to do business and relocate personnel. However, consistency in policy is crucial. Sudden regulatory changes or unexpected new requirements, such as high reinvestment mandates, can create uncertainty. The regional headquarters (RHQ) policy is a good example; while it has ultimately been successful in attracting companies, its initial rollout posed challenges.
Large corporations often have complex bureaucratic processes, making it difficult to adapt quickly to new requirements, and rapid changes like this can pose significant challenges for businesses navigating regulatory landscapes.The motivation behind the RHQ policy was understandable—it aimed to bring more companies into the Kingdom. Initially, there was some uncertainty as companies were unsure how to respond. However, to their credit, Saudi authorities addressed many of these concerns, and now more than 600 companies have officially moved their regional headquarters to the Kingdom.
This shows that positive progress can be made, but sudden policy shifts can create unnecessary challenges. The key is to avoid overnight announcements that require immediate reactions. Instead, incorporating private sector input from the outset, allowing time for feedback and smooth implementation, leads to more effective policy development. A well-structured process not only improves regulatory transitions but also strengthens the overall investment narrative, making the region more attractive to businesses.
EF: As an advocate for the importance of investing in healthcare, why do you believe that every dollar invested in this sector yields greater returns than in other industries? This applies not only to the U.S. and Saudi Arabia but globally. From your perspective, how do you shape that narrative?
LC: One clear example of the impact of healthcare investment is the significant contributions U.S. companies have already made to the sector. We conducted a study last year analyzing the economic contribution of U.S. healthcare companies to Saudi Arabia up to 2024.
The findings revealed that over the past decade, these companies have contributed approximately $13 billion. While healthcare companies are typically cautious about disclosing long-term projections, it is reasonable to expect that figure to double or even triple over the next ten years. This investment has already led to job creation, increased local capacity, and the development of domestic capabilities to manufacture and research healthcare products, ultimately improving access to life-saving treatments.
Saudi Arabia, as the largest economy in the region with a population of over 30 million people, has a strong demand for these innovations. Many healthcare companies, particularly in specialized areas such as orphan drugs and high-precision medical technology, often operate with a single global manufacturing site. The fact that some are now considering shifting part of that production to Saudi Arabia reflects the potential for both business growth and economic development in the region.
Healthcare investment not only drives foreign direct investment (FDI) but also strengthens localization efforts, positioning Saudi Arabia as a key player in global healthcare and life sciences. Beyond economic gains, this investment fosters workforce development through job training and infrastructure expansion, solidifying the country’s place on the world map of healthcare innovation.
Another critical factor is that, until now, Saudi Arabia’s healthcare ecosystem has been highly fragmented with multiple entities playing a role in its development. While key institutions like the Ministry of Health, SFDA, and NUPCO are at the forefront, there are also several other stakeholders, including the Ministry of National Guard Health Affairs, the NIH, universities, and various research institutions. This broad involvement has historically led to a fragmented system with overlapping responsibilities.
However, there has been a noticeable effort to create a more unified and strategic approach. A prime example is the recent launch of the country's biotech strategy, which aims to present a clear and cohesive vision for the sector. This initiative reflects a broader effort to articulate the value of Saudi Arabia’s healthcare ecosystem, align various stakeholders, and promote a structured growth plan. These steps are crucial in strengthening the sector and attracting further investment. For years, we have emphasized that the key to growing healthcare investment is not simply building more brick-and-mortar manufacturing sites. True growth comes from advancing research and development, expanding clinical trials, and fostering innovation in the sector. We have heard figures suggesting that only about 20% of all healthcare investment goes into physical sites, while the remaining 80% drives substantial growth in other areas.
Another important aspect to highlight is Saudi Arabia’s strides in digital health. They are doing remarkable things in this area, such as their digital hospital and innovative approaches to data use. These advancements are incredibly impressive, especially considering how they have managed to leapfrog the U.S. in certain areas. While the U.S. has a decentralized system with 50 states, Saudi Arabia benefits from a centralized government that can enact sweeping changes quickly, including healthcare protocols.
