Community pharmacy feasibility study
Latest regulatory change: 2026 · reviewed 2026-11-05
A community pharmacy dispensing medicines and prescriptions and selling personal care products and supplements.
- 9,360licensed pharmacies as of July 2024[4]
- 35%Saudization in community pharmacies[1]
- SAR 7,000minimum wage for a Saudi pharmacist[3]
Latest regulatory and market changes
- 2024The number of licensed pharmacies reached about 9,360, with 805 new licences issued in the first seven months of the year.[4]
- 2025A ministerial decision raised Saudization rates for pharmacy professions: 35% for community pharmacies, 65% for hospitals and 55% for other activities.[2]
- 2025Implementation began on 27 July for facilities employing 5 or more pharmacists, with a minimum wage of SAR 7,000 for Saudi pharmacists.[3]
- 2026The share of Saudis among pharmacists rose to 52% from 32% in 2018, according to the National Center for Health Workforce Planning.[5]
Why now
- The prevalence of chronic diseases and growth of the generic medicines market increase demand for repeat dispensing.[6]
- More than 2,000 pharmacies take part in the Wasfaty e-prescription service, so being connected to it has become a demand channel.[4]
- Higher Saudization rates and the minimum wage change the cost and availability of staff.[3]
9,360Licensed pharmacies in Saudi Arabia as of July 2024, according to a Ministry of Health report, of which 3,005 are in Riyadh.[4]
The idea and business model
A licensed healthcare facility that dispenses prescription and over-the-counter medicines and sells personal care products, supplements and home medical devices. Revenue comes from the margin on medicines, cosmetics and care products, and from e-prescriptions and insurance.
Model: Site-based retail
Project economics
Revenue formula
Sales channels
- Direct sales at the pharmacy
- E-prescriptions and insurance
- Delivery and app orders
Largest cost items
- Pharmaceutical and non-pharmaceutical stock
- Pharmacist salaries under Saudization
- Site rent
- Fit-out and systems
Decisive indicators we measure
- Average transaction value
- Non-medicine share of sales
- Stock turnover
- Prescriptions dispensed per day
Relevant authorities
- Ministry of Health: pharmacy licence and practice
- Saudi Food and Drug Authority (SFDA): registration and tracking of medicines and products
- Saudi Commission for Health Specialties (SCFHS): classification and registration of pharmacists
- Ministry of Human Resources and Social Development (HRSD): Saudization rates for pharmacy professions
- Ministry of Municipalities and Housing (MoMAH) via Balady: municipal licence and location
What needs your attention
- The cost of Saudi pharmacists, with a minimum wage and a mandatory Saudization rate.
- Concentration of pharmacies in major cities increases competition for locations.
- Margins on price-regulated medicines are limited, so profit depends on care products and insurance.
What a Community pharmacy study calculates for you
- Sales mix between medicines and care products, and the margin on each
- Staff cost under the Saudization rate and minimum wage
- Density of competing pharmacies around the site
- Working capital for stock
- Daily transactions 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.
- الموارد البشرية تبدأ تطبيق توطين مهن الصيدلةعكاظ · 2025-07
- Saudi Arabia raises local workforce quotas across key sectorsArab News · 2025-01
- Saudi Arabia begins pharmacy Saudisation with minimum salary of SAR 7,000Gulf News · 2025-07
- عدد الصيدليات المرخصة وتوزيعهاعكاظ (عن وزارة الصحة) · 2025-07
- المركز الوطني يرصد نمواً في أعداد الممارسين الصحيين السعوديينوزارة الصحة · 2026-05
- سوق الأدوية الجنيسة في السعوديةعكاظ · 2025-08
Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.