Pharmaceutical Businesses Opening for Foreign Investment
16 Apr 2020
On 15 April 2020, the Cabinet of the Kingdom of Saudi Arabia issued a resolution approving the Pharmaceutical and Herbal Establishments and Substances Regulation. It liberalizes certain pharmaceutical businesses in Saudi Arabia. The new regulation was enacted on 16 April 2020 pursuant to Royal Decree number (M/108) of 2020.
Under the previous regulation, ownership of certain pharmaceutical businesses including medicinal consultation and pharmaceutical-substance analytical centres and pharmaceutical wholesale warehouses was strictly limited to Saudi nationals. Under the new regulation, the restrictions on foreign ownership of certain pharmaceutical businesses have been removed, consequently allowing foreign investors to directly own any of the specified pharmaceutical businesses in Saudi Arabia.
In addition, the new regulation dispensed with certain “localization” requirements, which existed in the "old" Pharmaceutical Law. For example, this law had required pharmaceutical wholesale warehouses to be managed by a licensed pharmacist who is a Saudi Arabian national. Such requirement no longer exists under the new regulation.
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Type:
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Entry and establishment (Ownership and control)
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Industry:
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Services (Human health activities)
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Sources:
