Group purchasing in Saudi Arabia: where it stands
Unified procurement already serves government hospitals. Small businesses have no equivalent yet.
By Jmaa Business · Updated
It already exists, for government hospitals
The National Unified Procurement Company (NUPCO), owned by the Public Investment Fund and established in 2009, provides medicines, medical devices and supplies to government health bodies through a unified procurement system [1]. It is the Kingdom's clearest example of pooled demand at scale.
Small businesses have no equivalent
Monsha'at's SME Monitor reported that commercial registrations in the Kingdom passed 1.7 million in the second quarter of 2025 [2]. Each of those businesses negotiates with its suppliers alone.
Why that matters now
Vision 2030 aims to raise the contribution of small and medium enterprises to 35% of GDP [3]. Purchasing cost is one of the few levers a small business controls directly.
Where Jmaa fits
Jmaa applies the unified procurement idea to private small and medium businesses, sector by sector, starting with the standard items they all buy.
Sources
- 1National Unified Procurement Company (NUPCO)Saudipedia
- 2Monsha'at report: Saudi commercial registrations hit 1.7 millionSaudi Gazette, via Zawya, 2025
- 3Saudi Arabia sees 4.8% rise in new SMEs as total number reaches 1.2m in Q1Arab News, 2023
Outside facts are summarised in our own words. Follow the links for the originals.