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How to Open a Pharmacy in Dubai?

Healthcare Centres and Pharmacies are essential services in any country. With a large ex-pat population in UAE, there is a requirement for a pharmacy in every residential locality to access quick medication and health care treatments. For opening a Pharmacy in Dubai the investor has to obtain a Pharmacy License in Dubai from the respective licensing authority.

Scope of Pharmacies in Dubai

Pharmacies and health care centers in UAE are regulated by the Ministry of Health. The Ministry of Health authorities regulates all business licenses, permits, registrations, books, medical prescriptions, etc in UAE.

The investor must apply for an authorization letter from the health regulation department to initiate the business registration process.

Pharmacy License in Dubai

In Dubai, it is the Dubai Health Authority that is the primary authority that provides a comprehensive regulatory system for securing the healthcare ecosystem with best practices.

Requirements for opening a pharmacy in Dubai?

To open a pharmacy in Dubai following are the two broad steps

  1. Initial Approval
  2. Pharmacy License Issuance

Also, before starting the pharmacy, Drug Control Department in Dubai must inspect the physical store to issue the final clearance for sale.

Documents Required for opening a Pharmacy in Dubai

Following Documents are Required to Setup Pharmacy in Dubai

  • Application form to submit to the Dubai economy
  • Initial Approval for the premises from the Dubai Health Authority and Dubai Municipality (Must submit the Physical Store Blueprint)
  • Copy of the Tenancy Contract
  • Passport Copy of the investor
  • Pharmaceutical License copy issued by the Dubai economy
  • List of all employees with relevant healthcare certification

For a company to start selling or manufacturing pharmaceutical products in UAE it must have to obtain a license from the Dubai Health Authority. The investor will have to secure certain permits before beginning the operations.

For the initial Approval of the Pharmacy License in Dubai

The investor must apply to the Health Regulations Department for initial approval. The Pharmacy retail space must be designed as per the specifications indicated by the Dubai Municipality (Investor must get approval for the retail space).

The health authority will review the application and the supporting documents to issue the initial approval for setting up the pharmacy.

Register a Pharmacy Business in Dubai

1. Opening an LLC Company in Dubai

The next step is registering a company in the Dubai Mainland. The most common company structure chosen is the limited liability company (LLC).

Registering an LLC Company is a straightforward process and is advisable to take the assistance of experienced Business Consultants like AURION for hassle-free company registration and obtaining the required approvals.

2. Opening a Sole-Establishment in Dubai

Another company structure is registering as a Sole Establishment by getting a pharmacy License. However, considering the initial investment and capital requirements to run the pharmacy operations successfully, an LLC Company structure seems ideal.

It helps in effectively hedging the liabilities of the company from the personal wealth of the investor.

Issuing the Pharmacy License by the Authority

After receiving the initial approval from the Health Authorities and the Dubai Municipality, submit the application for onsite inspection and documents such as tenant contact, and building blueprint.

Subsequently, after the review, the Dubai Health Authority will issue the Pharmacy License to the investor.

Things to Know Before Opening a Pharmacy in Dubai

Operations a standalone pharmacy involves a lot of risk as well requirement of biding strong network of suppliers, investor storage, distribution, staff management, and more.

Hence most of the pharmacies in Dubai are either part of large hospital chains (Franchise bed business. Model) or international pharmaceutical companies that have a strong retail presence globally.

Pharmacy License in UAE

There are a lot of independent Pharmacies that are scaling up despite the large players, again it depends on the location chosen and many other real-time market factors.

The residential communities in Dubai are expanding, hence there is a growing demand for pharmacies in every locality. The ideal location for a pharmacy is always in a residential area to gain maximum footfall.

1. Supplier Relations for a Pharmacy

Building robust supplier relationships is key for the success of the pharmacy business as new medicine stocks have to be updated. Also, the existing inventory must be turned around frequently to deliver the latest medicines to the patient.

There are a lot of Pharmaceutical distributors in Dubai that sell a wide range of medicines and personal care products. Company can associate with large suppliers as well as nearby laboratories and health centers to gain new distributor contacts.

2. Potential customers

Customers are the key for any business to succeed, the choice of location plays a vital role in maintaining a steady footfall to the pharmacy.

The ideal location would close to residential areas, primary or small health clinics, easily accessible locations with parking facilities, etc. would help in gaining more customers.

Delivery service and other combo offers from the suppliers must be initiated to the customers to drive sales. The Promotions must be compliant with DHA regulations to avoid any fines.

3. Competition in the market

The Pharmacy sector in UAE is highly fragmented with a mix of big and small players, there is intense competition in the healthcare sector. Hence, the investors must be well aware of the computers and the product offerings. Also, there is service quality and customer satisfaction.

It will allow them to enter the market more aggressively and take a significant share of the market. Standing out in a comptetive market is crucial for gaining customer interest and enhancing sales.

4. Initial Investment

Opening a Pharmacy is a capital-intensive business lien as it includes a lot of overheads, the major cost contributor being the rent of the space, then the interior works, the inventory, staff salary, medical certifications, and other overheads like delivery, micro clinic setup, and more

So, in nutshell, it is an extensive journey towards establishing and scaling up a pharmacy in Dubai, connect with our expert Business team to know more about the permit requirements, approvals, and the license cost for setting up a pharmacy the most comfortable way.

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