Foreign investment in pharmaceutical retail activity remains reserved to Saudi investors and management. Notwithstanding the regulatory changes under Royal Decree M/108 of 2020, the legislation has excluded pharmacies and herbal substance sale stores from its scope of application. As such, ownership of these establishments is still limited to Saudi nationals pursuant to the previous legislation.
"Third: As an exception to the provisions of Article (forty-first) of the system, the provisions relating to the pharmacy and the facility for the sale of herbal preparations, stipulated in the system of pharmaceutical establishments and preparations, issued by Royal Decree No. (M / 31) dated 06/01/1425 AH, shall continue to be enforced, until such time as The issuance of provisions related to these two facilities, and work according to them
[...]
Article 1:
The following words and expressions - wherever they appear in this bylaw - have the meanings indicated opposite each of them, unless the context requires otherwise:[...]
Pharmacy: The facility prepared for preparing, dispensing or selling pharmaceutical and herbal preparations.
Warehouse for trade in pharmaceutical and herbal preparations: the pharmaceutical establishment that imports, distributes or sells pharmaceutical and herbal preparations in bulk.
Scientific Office: The pharmaceutical facility that provides scientific, technical and marketing information for pharmaceutical and herbal preparations in the Kingdom.
The plant for selling herbal preparations: the facility prepared for the preparation and sale of herbal preparations.
Center for drug consultation or analysis of pharmaceutical and herbal preparations: A pharmaceutical facility that provides drug consultations, analyzes pharmaceutical and herbal preparations, studies availability and bioequivalence, controls the specific quality of drugs, and determines drug levels in biological fluids
[...]
Article Three:
The requirements for licensing a drug consulting center or analysis of pharmaceutical and herbal preparations are as follows:
-The director must be a full-time pharmacist licensed to practice the profession. 
-The center must fulfill the conditions and specifications specified by the regulations.
Article Four:
The following conditions are required for licensing to the warehouse for trading in pharmaceutical and herbal preparations:
- The manager must be a full-time pharmacist or pharmacy technician licensed to practice the profession.
- The warehouse must fulfill the conditions and specifications specified by the regulations.
Fifth Article:
In order to grant a license to a pharmaceutical and herbal preparations factory, the following are required:
- Obtaining an industrial license from the competent authority.
- The technical director must be a full-time Saudi pharmacist licensed to practice the profession.
- The factory must fulfill the conditions and specifications specified by the regulations.
Article Six:
Every company or establishment for the manufacture of pharmaceutical or herbal preparations - that has a factory registered in the Kingdom - must have a scientific office, and the following conditions are required for granting a license to the office:
- His manager must be a full-time Saudi pharmacist licensed to practice the profession.
- To fulfill the conditions and specifications specified by the regulations
[...]
Article Ten:
Only a full-time Saudi pharmacist who is licensed to practice the profession may work in the field of advertising and introducing pharmaceutical and herbal preparations. The president may exempt from the nationality requirement if the sufficient number of Saudi pharmacists is not available.
[...]
Article Fourteen:
The retail sale of pharmaceutical preparations is limited to pharmacies, with the exception of what the president decides may be sold elsewhere.
The retail sale of herbal preparations is restricted to pharmacies and establishments that sell herbal preparations, with the exception of what the President decides may be sold elsewhere. [...]"(System of establishments and pharmaceutical and herbal preparations, Royal Decree No. (M / 108) dated 22/08/1441 AH [google translated])
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up to 2019: see below
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"Article 1:
The following words or phrases, wherever mentioned in the system, have the meanings mentioned before them, unless the context requires  otherwise: [...] 
The pharmaceutical establishment: the pharmacy or facility selling herbal preparations, or pharmaceuticals factory, or wholesale warehouse for trading in pharmaceutical and herbal preparations, or the scientific office of the pharmaceutical company, or the center for drug advice and analysis of pharmaceutical preparations.
Pharmacy: The pharmacy facility prepared for the preparation and dispensing of pharmaceutical preparations.
Warehouse for trading in pharmaceutical and herbal preparations: A pharmaceutical facility licensed to import, distribute or sell wholesale pharmaceutical and herbal preparations [...]
Plant selling herbal preparations: A pharmacy facility intended for the preparation and dispensing of herbal preparations.
Center for Drug Consultation and Analysis of Pharmaceutical Preparations: A pharmaceutical facility that provides drug consultations, analyzes pharmaceutical and herbal preparations, studies availability and bioequivalence, controls the quality of drugs, and determines drug levels in biological fluids.
[...]
Article Three:
The ownership of a pharmacy, a facility selling herbal preparations, or a center for drug consulting and analysis of pharmaceutical preparations is restricted to Saudis, and the following conditions are required for granting the license:
a - That the owner or one of the partners be a pharmacist licensed to practice the profession, with the exception of existing establishments except in cases of death, sale or Waiver, and the Minister may be satisfied with the requirement of nationality in the remote areas specified by the regulations.
B - That the director of the pharmacy, facility, or center is a full-time Saudi pharmacist licensed to practice the profession, and the minister may exempt from the nationality requirement if there is not a sufficient number of Saudi pharmacists.
C - That the pharmacy, establishment, or center fulfill the conditions and specifications specified by the regulations
Article Four:
To grant a license to open a warehouse for the wholesale trade of pharmaceutical and herbal preparations, the following conditions
must be met : A - The nationality of the applicant for the license must be Saudi, and if he is an individual, his age must not be less than twenty one years
B - He should not have been convicted of a crime involving dishonor or dishonesty, unless he has been rehabilitated.
C - That the warehouse manager is a full-time pharmacist or pharmacy technician licensed to practice the profession.
D - That the warehouse fulfill the conditions and specifications specified by the regulations.
Fifth Article:
In order to grant a license to open a factory for pharmaceutical and herbal preparations, the following are required:
A - Obtaining an industrial license from the competent authority.
B - That the technical director of the factory be a branched Saudi pharmacist licensed to practice the profession.
C - That the factory fulfill the conditions and specifications specified by the regulations.
Article Six:
Every company or establishment for the manufacture of pharmaceuticals must have a factory registered in the Kingdom; A scientific office, and to grant a license to the office , the following conditions
must be met : A - The office manager must be a full-time Saudi pharmacist licensed to practice the profession.
B - That the office fulfill the conditions and specifications specified by the regulations.
[...]
Article Eleven:
Only a full-time Saudi pharmacist licensed to practice the profession may work in the field of advertising and introducing pharmaceutical and herbal preparations, and the Minister may exempt from the nationality requirement if the sufficient number of Saudi pharmacists is not available. 
[...]
Article Sixteen:
Pharmaceutical preparations are not sold retail except in pharmacies. With an exception, the Minister issues a list of pharmaceutical preparations that are permitted to be sold retail in other than pharmacies.
Article Seventeen:
Herbal preparations according to a decision issued by the Minister are not sold except in pharmacies or establishments that sell herbal preparations [...]" (The system of establishments and pharmaceuticals, Royal Decree No. M / 31 dated 6/1/1425 [google translated])
The system of establishments and pharmaceuticals, Royal Decree No. M / 31 dated 6/1/1425 [google translated]
[<a href="https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/e14d5204-6b1f-432e-b139-a9a700f28765/1">Decree</a>]