Testimonial: United Pharma
Driving Nationwide Expansion Through Strategic Trade Credit Insurance
Industry:
Pharmaceuticals
Challenge:
Expansion plans while managing risk.
Policy Benefit:
Safe Expansion
United Pharma has been a long-standing Allianz Trade Credit Insurance (TCI) policyholder in Saudi Arabia, insured through our partnership with Mutakmela. As the company embarked on its ambitious nationwide expansion, opening new branches at a rapid pace, TCI played a crucial role in providing the financial flexibility and protection needed to support extended payment cycles and increased inventory demands. Recently, we had the opportunity to meet the United Pharma team in person and interview their Group CFO -Dr. Mohammed El Morsy about their journey, the challenges they faced, and how Allianz Trade has supported their growth and success.
Interview
Q1: How would you describe the development of your sector in Saudi Arabia in the coming years, and what are the main challenges you have faced?
Our strategic transformation began in 2022, even though our company has been established since 1993 as one of the first retail chains in the country. By the end of 2016, we had achieved a strong market share, but—like many companies in the pharma and retail sectors—we experienced a period of decline.
When Mr. Khaled Yassin officially assumed the role of CEO in 2020, he launched a comprehensive investment and development plan aimed at revitalizing the company and restoring its strong reputation in the market. One of our core objectives was to re-establish our leadership position and drive significant expansion across various provinces. We also focused on enhancing our presence in the western region, which hosted our first major branch, and on adjusting our operations to better address seasonal demand patterns in different cities.
Our expansion phase began strongly—we opened 50 locations in the first year and have since maintained an average annual growth of around 100 new spaces.
As for challenges, continuous development remains the most significant one. Keeping pace with rapid market changes, evolving customer expectations, and increasing competition—especially from international players—requires constant innovation, investment, and operational agility.
Q2: What role has trade credit insurance played in supporting your business or accelerating your growth within Saudi Arabia
Trade credit insurance was not a requirement from our bank, nor was it a condition for obtaining any financial facilities. However, it played a significant strategic role for us. By securing our receivables, we were able to benefit from improved cash flow and extend our payment terms with greater confidence.
Before implementing TCI, our payment terms were relatively limited—around 30 to 60 days. With the support of trade credit insurance, we were able to safely extend these terms to as much as 100–180 days when needed. This flexibility contributed directly to our growth, allowing us to strengthen relationships with suppliers and manage inventory more effectively.
Thankfully, we have not faced any claims so far, which speaks to the quality of our customer base and internal controls. Overall, TCI has been a value‑adding tool for us—pure profit in many ways—supporting both our commercial expansion and the development of our services, not only in retail products but also in medical and healthcare offerings.
Q3: What advice would you give to other companies seeking to benefit from trade credit insurance services in the Kingdom?
My advice to companies is to view trade credit insurance not as an optional product, but as a strategic growth enabler. Many businesses assume TCI is only needed when banks require it, but in reality, its greatest value comes from the flexibility and confidence it provides.
With Trade credit Insurance, companies can safely extend payment terms, improve cash‑flow stability, and strengthen their relationships with customers and suppliers. This added security helps unlock expansion opportunities—whether in retail, distribution, or services—without exposing the business to unnecessary risk.
Another important point is that choosing the right partner matters. Working with a reliable insurer allows you to benefit not only from coverage, but also from valuable market insights, customer risk assessments, and ongoing support that guide better credit decisions.
Finally, even if you never file a claim—as in our case—the peace of mind and commercial freedom that TCI provides make it a worthwhile investment. I would strongly encourage companies of all sizes in Saudi Arabia to consider it as part of their long‑term financial and growth strategy.