Saudi Arabia

Saudi Arabia

Opens the retail pharmacies sector to foreign investors

03 Mar 2025

On 3 March 2025, Saudi Arabia issued Royal Decree No. M/195, which permits foreign ownership in the retail pharmacies sector. Before the issuance of this Decree, the retail pharmacies sector in Saudi Arabia was governed by the Law of Pharmaceutical and Herbal Establishments and Preparations (2004), which restricted ownership to Saudi nationals. Although some restrictions were lifted in 2020—such as those on pharmaceutical wholesale warehouses—foreign ownership in retail pharmacies remained prohibited. Royal Decree No. M/195 removes previous restrictions and legal ambiguities, and allows both direct and indirect foreign ownership in retail pharmacies. The regulation takes effect from 3 March 2025 and will remain in force until the enactment of the forthcoming Integrated Healthcare Law.

Nature of measure:
  • Liberalization
Type:
  • Entry and establishment (Ownership and control)
Industry:
  • Services (Wholesale and retail trade)
Inward FDI:
No
Outward FDI:
No
Sources: