SAUDI ARABIA – The Public Investment Fund (PIF) has formed a new company called Badael to develop, manufacture and distribute smoke-free alternatives to combustible tobacco.
As countries gear up to mark World No Tobacco Day on 31st May 2023, PIF is exploring new ways to reduce smoking prevalence and promote healthier lifestyles in the Kingdom of Saudi Arabia.
In an official note, the Public Investment Fund said: “Badael’s products are expected to help nearly one million people in Saudi Arabia switch from smoking by 2032.”
Badael is set to bring its tobacco-free nicotine delivery products to the Saudi market by the end of 2023 in concerted efforts to curb health expenditures related to cigarette smoking.
The firm will provide a wide range of innovative alternative nicotine products, and, ultimately, encourage adult smokers who would otherwise continue to smoke to transition to less harmful products.
These innovative products will be manufactured in Saudi Arabia following the highest level of product quality and safety through best-in-class practices.
In turn, the investment will unlock the greater potential to deliver direct annual savings of more than SAR 6 billion (US$1.6 billion) on healthcare expenditure by 2032.
Furthermore, the new company will help to curb smoking habits and address the negative impact that smoking has on the well-being of the Saudi population.
The PIF-owned company also plans to expand access to its tobacco-free products across regional and international markets in the coming years.
This new venture will pave the way for strategic alliances with the local private sector and world-class global partners to deliver innovative healthcare solutions to the current tobacco epidemic.
Badael will further contribute to PIF’s localization mandate by supporting domestic manufacturing, sourcing raw materials, knowledge transfer, and development of intellectual property strategies.
Since 2017, PIF has established 77 companies in different sectors and created more than half a million direct and indirect jobs.
The PIF is currently driving the Kingdom’s Vision 2030 and is playing a crucial role in materializing the economic diversification targets of Saudi Arabia.
For this reason, the Public Investment Fund is looking to more than double its assets under management to more than SAR 4 trillion (US$1.07 trillion) by 2025.
The expansion is expected to create new economic opportunities over the next years in line with PIF’s strategy to improve the quality of life for all.
Moreover, the launch of Badael is in line with Saudi Arabia’s broader efforts to enhance the quality of preventive and therapeutic healthcare services as a part of its Vision 2030.
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