How to Establish a Pharmacy – Medicines Trading in the UAE

How to Establish a Pharmacy – Medicines Trading in the UAE
Activity Code: 513967

Activity Group: Medicines trading

License Type: Commercial (L.L.C)

Activity Description: A specialized facility licensed to sell and prepare registered drugs, pharmaceuticals, medical supplies and dispense herbal and medical drugs against medical prescription, according to the laws and regulations issued by competent authority of UAE. It is supervised by a licensed pharmacist who works permanently in the pharmacy.


As in most businesses, when setting up a successful pharmacy, the location (point) is decisive. In addition to the point being appropriate (minimum size required by health surveillance, facilities, etc.) should be a good flow point / Vehicles, parking, adequate neighborhood and no excess of competition.


The higher the population density of the region the better, the better the location to set up a pharmacy. Knowing exactly how to set up a business is key to success when setting up a pharmacy since all businesses have a similar basic structure!


Thus, it is necessary to thoroughly evaluate the basic criteria before choosing the point to set up the pharmacy. With the aim of reducing business risks by immobilizing less capital, the best choice is to rent a point and not buy. To verify that a pharmacy can be set up in the chosen place, it is necessary to check with your Business Consultant all criteria of establishing such business.


Potential Customers Assembling a Pharmacy

For the World Health Organization, the service coverage area of a drugstore should have a minimum of 10,000 potential clients. However, we can see in some cities that even with a smaller number of potential clients per pharmacy, it is still possible to have a profitable business, almost as a cause and effect relationship, the higher the potential customers, the higher the sales and consequently, Profit.


Learn to do a good market analysis and meet your target audience, and this will be essential to the success of the venture.




In addition to assessing the size of the consumer market (potential customers), you need to assess the size of the competition. One suggestion is to use Google Maps, type a zip code of the region where you plan to set up the pharmacy, print or save the map, and have fun marking the location of each competitor, so it is much easier to visualize and analyze if the place is Or not a good choice to set up the pharmacy.


Visit your competitors, check the products they sell and what they do to retain their customers, what services are added to the products (home delivery, payment deadline, pressure measurement, etc.). Evaluate everything they do and see how you can do better.


Pharmacy Mount Suppliers


There are usually distributing companies that sell most of the products that you will have in the pharmacy so that you will have few suppliers. Another alternative is to call the laboratories and request the cash from the distributors. Normally your suppliers will already have a good idea of the initial inventory needed, listen with a critical sense, and analyze if that number of products in stock is essential given the lead time and sales volume.





The products marketed in a pharmacy are monitored medicines, released medicines, toiletries, perfumery, hospital line, diapers, milk powder, and in some cases even convenience products like ice cream, soft drinks, chocolates, etc.


Equipment Needed to Set Up the Pharmacy:


  • Shelves
  • Showcases;
  • General hospital matters;
  • Furniture;
  • Computer;


Initial Investment to Set Up a Pharmacy:


The value of the initial investment can vary from $ 30,000.00 to to $ 150,000.00, depending on  the physical structure, location, target audience and timing sales structure chosen by the entrepreneur. For example, the amount needed to set up a pharmacy in a capital city, with the good neighborhood and high purchasing power, is certainly much greater than setting up a pharmacy inside.


Another comparison is to set up a pharmacy with a 30/60/90 day term sales policy, which will require much more working capital since you will take the time to receive the sales and buy practically in sight, which is the type of purchase of a pharmacy, which will consequently imply greater initial investment.


Labor to Build a Pharmacy


The workforce can be specialized or trained by the responsible pharmacist himself. The number of employees will also depend on the structure of the pharmacy.


Keep in mind that when setting up a pharmacy it is MANDATORY to have a responsible certified pharmacist. This manager should be a certified specialist by the health authority.


A good tip to maximize your profits is to offer manipulation services, including, can provide medicines for nursing homes, hospitals, cancer treatment institutions and so on.


Company Registration


In addition to the normal documents to open a company, which are Federal (Federal Revenue), State (State Commercial Board and State Treasury Department) and Municipal (City Hall) records, the following are required:


  • Operating permit;
  • Certified Pharmacist ‘Manager’;
  • Registration with the Municipality (Department of Health and Public Safety);
  • Registration at the Regional Health Authority



If you are interested to establish a Pharmacy business in the UAE it is better to consult first with an authorize company formation specialist. So what are you waiting for, Grab our Free Consultation offer today.


Related Article: How to Establish a Supermarket Business in the UAE?





Ahmed Saeed
Managing Director


Ahmed Saeed;  Managing Director

Has breadth of knowledge within the Business Structuring, Investment and Wealth Management Industries. He has been working in these sectors for over a decade.

Ahmed prides himself on his extremely high level of client service together with his reliable, informative advice and guidance to ensure his clients achieve their Business Goals.