Thinking about how to open a drug store in Dubai? It’s essential to understand how it differs from a pharmacy.

The term “Drugstore” or “Drug Store” is often misunderstood and most of the time confused with a Pharmacy. However, in Dubai, from legal point of view, the Drugstore and the Pharmacy are separate business activities, although close to each other.

In accordance with the official definition of Economic Activities in Dubai:

The Drug Store is a firm “licensed to import and store registered pharmaceuticals, medical supplies, and herbal medicines, alternative medicine, drugs and distribute the same on wholesale basis”. Therefore, Drug Store is also known as a Medical Warehouse.

On the other hand, the Pharmacy is “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”.

So, the main difference between the Drug Store and the Pharmacy is that the Drug Store is allowed to sell medical products only on wholesale basis, while the pharmacy can sell on retail basis only.

While we leave discussion on the difference between the Drug Store and the Pharmacy for next topics, in this article we shed light on how to open a Drug Store in Dubai, focusing on the drug store license process in UAE Dubai and the necessary medical warehouse setup steps.

Dubai is a business hub for many business sectors including healthcare services. The city’s emphasis and awareness campaign on sports, healthy living and self-care have contributed to the expansion of healthcare and wellness sectors hugely. Also, due to inflow of high-net-worth residents from across the globe, the demand for high quality healthcare products and wellness services is on the rise. The city is home to a mix of millionaires, skilled professionals, and tourists from all over the world, all of whom seek high-quality healthcare products. Therefore, setting up a Drug Store business in Dubai can be lucrative.

Setting up a Drug store business can be rewarding but challenging at the same time due to strict regulations and multiple approvals. Therefore, it requires careful preparation, understanding local rules and regulations, and very importantly, big patience. If you are planning to open your Drug Store in this fast-moving yet strict-rules-applied city like Dubai, this guide will help you get started.

1.    Choose the Right License Activity

As mentioned earlier, there is a key difference between the Drug Store and Pharmacy license. Drug Store is for wholesale and the Pharmacy is for retail. Also, there are several business activities such as Medical & Surgical Equipment Trading or Medical Surgical Articles & Requisites Trading, which allow to import and sell certain medical equipment without registration with MOHAP. However, the above mentioned activities do not allow you to register or import medical equipment or devices that are subject to registration by MOHAP. If you are planning to import medical equipment or devices (e.g. X-ray machine) that are subject to MOHAP registration, then you must setup a Drug Store license. If you are not sure whether your product is subject to MOHAP registration or not, we recommend doing a Product Classification through MOHAP prior to establishing the business.

2.    MOHAP Drug Store License Requirements

As the main regulator of Drug Store business, the Ministry of Health has specific requirements to issue license for the Drug Store. The list of documents are as follows:

• For Initial Approval (owner profile check & primary inspection):
  • A copy of shareholder’s passport
  • A copy of shareholder’s family book (for UAE nationals)
  • A copy of manager’s passport
  • A copy of valid ID card (if available)
  • A recent color photograph
  • An introductory statement filled out exclusively by the owner and the responsible pharmacist (the statement is available at any Customer Happiness Center)
  • The site’s architectural drawing approved by an engineering consultant office

• For Registration in Tatmeen:
  • Location photos
  • Initial approval from licesing authority (e.g. DET)
  • Affection plan attested by the municipality
  • A copy of the establishment lease agreement
  • A copy of the trade name

• Final inspection and final approval of the license:
  • A copy of trade license issued by the Department of Economy and Tourism (DET)
  • A copy of license of the pharmacist responsible for pharmaceutical facility
  • A copy of a certificate of conformity with preventive safety requirements issued by the civil defense
  • A list of partners

3.    Step-by-Step Process of Setting Up Drug Store In Dubai

Drug Store business registration and licensing in Dubai involves multiple steps and approvals.

1. Initial Approval and Name Reservation from DET
2. Lease Agreement Signing and Ejari Registration
3. Initial Approval from Ministry of Health and Prevention (MOHAP)
4. Final Registration and License from DET
5. Registration with MOHRE and GDRFA
6. Hire a Pharmacist
7. Dubai Civil Defense Certificate of Safety
8. Final MOHAP Inspection and License

4.    Cost to Open Drug Store (Medical Warehouse) in Dubai

Cost of setting up the Drug Store, also known as a Medical Warehouse, vary depending on many factors, however the below fees can provide you the rough cost estimate of setting up the Drug Store in Dubai:

• DET Registration and License Fees: AED 15,000 – 20,000
• MOHAP Inspection and License Fees: AED 11,000
• MOHRE and GDRFA Fees: AED 2,000
• Warehouse Rent: AED 50,000 – AED 300,000 per year (depending on location)
• Pharmacist Salary: AED 5,000 – 12,000 per month
• Staff Salary: AED 4,000 – AED 7,000 per month per employee
• Equipment & Interiors: AED 50,000 – AED 200,000 (depending on design)

Legal service fees vary based on the company’s structure, type of shareholding, available documentation.

The Drug Store license has to be renewed annually both with DET and MOHAP, therefore, the abovementioned fees apply annually with small reduction.

5.    Final Thoughts

Setting up a Drug Store in Dubai can be challenging but a highly rewarding business if you approach it with careful planning and dedication. Not everyone can successfully establish a Drug Store business. With its growing economy and demand for high quality medical products and services, Dubai offers endless opportunities for medical warehouses and pharmacies. So, take the step today and turn your dream of owning a Drug Store in Dubai into reality.

Take the First Step Towards Owning a Drug Store in Dubai! Don’t navigate complex regulations alone. Let our professionals handle the paperwork and legal requirements so you can focus on your business. Schedule a call with our consultants today!

FAQ’s

What’s the difference between a Drug Store and a Pharmacy in Dubai?

Both Drug Store and Pharmacy are established to sell medicine or medical products. However, there is one key difference between them. Drug Store is allowed to sell medical products only on wholesale basis, while the pharmacy can sell on retail basis only.

Can foreigners own a Drug Store (Medical Warehouse) in Dubai?

Yes, foreigners can own a Drug Store company fully.

Do I need a pharmacist to open a Drug Store?

Yes, it is mandatory to hire a Pharmacist to open a Drug Store.

Do I need a local sponsor or local shareholder to setup a Drug Store in Dubai?

It is not mandatory to hire a local sponsor or to have local shareholder to setup a Drug Store.

What kind of facility do I need to rent for a Drug Store?

You have to rent a special warehouse that can meet technical requirements imposed by the Ministry of Health, e.g. it has to be min 50 sqm excluding office and toilet space, and must be climate controlled, with proper storage for different types of medications, including a refrigerator with a digital thermometer.