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Food production

Butcher shop feasibility study

Latest regulatory change: 2025 · reviewed 2026-11-05

A shop that cuts and sells fresh meat by the kilogram and by the whole carcass, prepared to order.

  • 61%self-sufficiency in red meat at end-2024[4]
  • SAR 17.6 billionsheep imports over 5 years[4]
  • 70%Saudization rate in meat outlets[1]

Latest regulatory and market changes

  1. 2020A ministerial decision requires outlets selling meat, poultry and fish to Saudise 70% of their workforce.[1]
  2. 2025New requirements bar grocery stores and kiosks from selling meat; sales are now limited to larger outlets with a separate licence.[2]
  3. 2025The Ministry of Municipalities and Housing (MoMAH) published the health requirements for shops preparing, processing and selling meat, poultry and their products; they are in force.[3]

Why now

  • Restricting meat sales to licensed outlets shifts part of demand from small grocery stores to specialist shops.[2]
  • Reliance on imports is high: sheep imports reached SAR 17.6 billion over five years.[4]

61%Saudi Arabia's self-sufficiency in red meat at the end of 2024, according to statements by the Agricultural Development Fund (ADF).[4]

The idea and business model

A shop selling fresh red meat and poultry, cut and prepared to the customer's order. Revenue comes from sales by the kilogram, whole carcass sales, prepared orders and supply to restaurants.

Model: Site-based retail

Project economics

Revenue formula

Kilograms sold per day×Average price per kilogram×Operating days

Sales channels

  • In-shop sales
  • Whole carcasses and prepared orders
  • Supply to restaurants and kitchens

Largest cost items

  • Livestock and carcass purchases
  • Refrigeration and electricity
  • Salaries
  • Rent and fit-out

Decisive indicators we measure

  • Yield after cutting
  • Margin per kilogram
  • Wastage rate
  • Share of supply to restaurants

Relevant authorities

  • Ministry of Municipalities and Housing (MoMAH) via Balady: licence and health requirements for meat shops
  • Municipality: health inspection and health certificates for workers
  • Ministry of Human Resources and Social Development (HRSD): 70% Saudization rate
  • Ministry of Commerce: Commercial Registration (CR)
  • Civil Defence: safety certificate

What needs your attention

  • Prices of imported livestock fluctuate and directly affect the margin.
  • Health requirements for refrigeration and cutting are strict, and violations can mean closure.
  • The Saudization rate raises the cost of skilled butchers.

What a Butcher shop study calculates for you

  • Yield for each type of carcass
  • Effect of livestock price swings on the margin
  • Cost of refrigeration and hygienic fit-out
  • Cost of 70% Saudization
  • Daily volumes needed to break even

Every one of these figures appears in your study with its source and date, built on your location and capital, with a clear line between documented facts and assumptions.

Sources

Most sources are Saudi government and press pages in Arabic; titles are kept in their original language so you can find them.

  1. قرار توطين منافذ البيع في 12 نشاطاً اقتصادياًوزارة الموارد البشرية والتنمية الاجتماعية · 2020-03
  2. Saudi Arabia: Grocery stores banned from selling tobacco, meat, fruit and vegetablesGulf News · 2025-06
  3. لائحة الاشتراطات الصحية لمحلات إعداد وتجهيز وبيع اللحوم والدواجن ومنتجاتهاوزارة البلديات والإسكان · 2025-11
  4. السعودية تستورد أغناماً بـ 17.6 مليار ريال في 5 أعوامالاقتصادية · 2025-06

Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.