Workplace Intelligence for HR, Talent & HRTech Leaders in the Middle East Saudization Hub Human Resource Events

Pharmacy Saudization: Localization Rates by Pharmacy Setting

By Ishta Handa, HR Researcher & Leadership AuthorLast fact-checked 9 October 2026
Pharmacy Saudization: Localization Rates by Pharmacy Setting: StrongYes Saudization Hub
Quick answer

Pharmacy Saudization in Saudi Arabia has three rates, set by where the pharmacy work happens: 35% in community pharmacies and medical complexes, 65% in hospital pharmacy activities and 55% in other pharmacy-related activities. They took effect on 27 July 2025 for establishments with five or more workers in pharmacy professions. MHRSD sets a minimum wage of SAR 7,000 for Saudis to count toward the rate.

Pharmacy Saudization sets a minimum Saudi share for pharmacy professions, and it differs by setting. MHRSD, working with the Ministry of Health, applies 35% in community pharmacies and medical complexes, 65% in hospital pharmacy activities and 55% in other pharmacy-related activities. The rates have applied since 27 July 2025.

What are the pharmacy Saudization rates by setting?

There are three rates, and the one that applies depends on the licensed activity where the pharmacist works.

SettingRateEffective
Community pharmacies and medical complexes35%27 July 2025
Hospital pharmacy activities65%27 July 2025
Other pharmacy-related activities55%27 July 2025

All three share the same conditions:

ConditionDetail
Applies toEstablishments with 5 or more workers in pharmacy professions
Minimum wage to countSAR 7,000 a month
AuthorityMHRSD, in partnership with the Ministry of Health
Procedural guidePublished by MHRSD with the decision

Argaam reports that the pharmacy decision is Ministerial Decision No. 103111. The procedural guide defines the covered job titles and the activities that fall into each setting, so use it to confirm where your pharmacy sits.

When did pharmacy Saudization start?

The pharmacy rates took effect on Sunday 27 July 2025. MHRSD announced their start together with a 45% first phase for dentistry and a 30% rate for technical engineering. Argaam reports that the pharmacy rules rest on Ministerial Decision No. 103111, dated 26 January 2025. MHRSD has not announced a second phase for pharmacy, while dentistry moved to 55% on 27 January 2026.

DateEvent
27 July 2025Pharmacy rates take effect: 35%, 65% and 55%
27 January 2026Dental rate rises to 55% (not a pharmacy change)

As of 8 October 2026, StrongYes has not found a later MHRSD change to the pharmacy rates. Confirm the current position in the rates database.

Which pharmacy setting does my business fall into?

The setting follows the activity licensed for your establishment, not the job title of the employee. A pharmacist working in a hospital pharmacy counts toward the 65% rate, while a pharmacist in a retail pharmacy counts toward the 35% rate.

Employers with more than one setting should calculate each separately. A medical complex with a pharmacy, for example, is named in the 35% category, while a hospital's pharmacy department is in the 65% category. MHRSD's guide defines the boundary, and registered occupations should match actual duties. Our guide to mapping job titles to Saudi occupation codes explains how to check.

How do you calculate the pharmacy requirement?

Multiply the number of workers in the covered pharmacy professions by the rate for your setting, then round. MHRSD guides for other decisions round to the nearest whole number, with halves rounding up. We have not confirmed the pharmacy guide's rounding rule, so treat these figures as illustrations.

Workers in covered pharmacy professionsCommunity (35%)Other activities (55%)Hospital (65%)
51.75, so 22.75, so 33.25, so 3
62.1, so 23.3, so 33.9, so 4
82.8, so 34.4, so 45.2, so 5
103.5, so 45.5, so 66.5, so 7
2071113

Only Saudis paid at least SAR 7,000 a month count. Our salary thresholds guide compares this floor with other decisions.

What MHRSD says

  • Pharmacy localization of 35% (community pharmacies and medical complexes), 65% (hospital pharmacy activities) and 55% (other pharmacy-related activities).
  • Effective Sunday 27 July 2025, for establishments with five or more workers in pharmacy professions.
  • Minimum wage of SAR 7,000 applies to pharmacy professions.
  • MHRSD offers recruitment, training, employment support and Hadaf programs.

Our analysis

  • Hospital pharmacy carries the highest rate and community retail the lowest, so a group with both settings faces very different targets.
  • A pharmacy chain with many small branches may fall below the five-worker threshold at branch level. Confirm in the guide whether the count is by establishment or by entity.
  • Extended-hours community pharmacies and smaller cities may be harder to staff with qualified Saudis, so early hiring matters.

What happens if a pharmacy does not comply?

MHRSD states that establishments that do not meet the decision face statutory penalties for violators, and it published procedural manuals on its website to clarify the details. The Ministry of Health supervises pharmacy compliance. Our guide to Saudization violations and penalties covers how enforcement works across decisions.

What should pharmacy employers do now?

  1. Count workers in the covered pharmacy professions and check whether you reach five.
  2. Identify your setting for each licensed activity: community, hospital or other.
  3. Check the salary of every Saudi you count against SAR 7,000.
  4. Calculate the gap using the rate for each setting.
  5. Plan hiring and development. MHRSD points employers to recruitment assistance, training support and employment support through Hadaf. See Saudization support programs.

What does it mean for Saudi pharmacists?

The required share is highest in hospital pharmacy, where 65% of covered roles must be Saudi, followed by other pharmacy-related activities at 55%. Community pharmacies need a lower share, but they employ many pharmacists. Saudi pharmacists earning at least SAR 7,000 count toward the rate, which shapes employer pay offers. The rule raises demand but does not guarantee any individual a role.

What does it mean for expat pharmacists?

The rule caps the non-Saudi share at 65% in community pharmacies, 35% in hospital pharmacy and 45% in other activities, for establishments with five or more workers in pharmacy professions. Pharmacies with fewer pharmacy workers are outside this decision. Our expat guide explains how to check whether a profession is affected, and the healthcare Saudization overview covers the other health decisions.

How does pharmacy compare with dentistry?

Both rules were announced together and are supervised by the Ministry of Health, but pharmacy has three rates, a higher headcount threshold and a lower salary floor.

FeaturePharmacyDentistry
Rate35%, 65% or 55% by setting55% (from 45%)
Establishment threshold5 or more pharmacy workers3 or more workers in dental specialties
Minimum salary to countSAR 7,000SAR 9,000
PhasesOneTwo

A worked example: a hospital with an outpatient pharmacy

A private hospital runs an inpatient pharmacy with 10 covered workers and a separate outpatient community-style pharmacy with 6. If both fall under their own setting, the hospital activity needs 6.5 Saudis (7 with half-up rounding) and the community activity needs 2.1 (2). The licensed activity decides which rate applies, so the hospital should confirm with MHRSD's guide how a combined pharmacy department is classified before it plans headcount.

This is an illustration. Rounding and classification are the two points to confirm in the guide.

What is still to be confirmed?

  • The rounding rule in the pharmacy guide. We use half-up rounding, as in other MHRSD guides.
  • The exact boundary between the 55% "other activities" setting and the other two.
  • Whether the five-worker count is taken per establishment or across an entity with several licenses.

For other health rates, see healthcare Saudization.

Common questions about the pharmacy rates

Does one pharmacist at a chain branch trigger the rule? The rule applies to establishments with five or more workers in pharmacy professions, so a branch with fewer than five is outside it on that reading. Check whether the guide counts per branch or across the entity.

Do pharmacy technicians count? The announcement refers to pharmacy professions defined in the guide. Whether a given technician role is covered depends on its registered occupation, so check the list.

Does a Saudi on SAR 6,500 count? Not toward the rate. The minimum wage for pharmacy professions is SAR 7,000, and a Saudi below it is employed but not counted.

Frequently asked questions

01What is the Saudization rate for community pharmacies?

35% for community pharmacy and medical complex activities, in force since 27 July 2025. It applies to establishments with five or more workers in pharmacy professions, and Saudis count at a minimum wage of SAR 7,000.

02What is the Saudization rate for hospital pharmacies?

65% for hospital pharmacy activities. This is the highest of the three pharmacy rates and has applied since 27 July 2025 to establishments with five or more workers in pharmacy professions, with a SAR 7,000 minimum wage for Saudis to count.

03What does the 55% pharmacy rate cover?

Other pharmacy-related activities, meaning pharmacy work outside community pharmacies, medical complexes and hospitals. MHRSD's procedural guide defines which activities fall into this category, so check the guide for your licensed activity.

04Is there a minimum salary for a Saudi pharmacist to count?

Yes. MHRSD sets SAR 7,000 as the minimum wage for pharmacy professions in the Saudization calculation. A Saudi earning less is employed but does not count toward the required rate.

05Does the pharmacy rule apply to a pharmacy with three staff?

No. MHRSD's announcement applies the pharmacy rates to establishments with five or more workers in pharmacy professions. Pharmacies with fewer pharmacy workers fall outside this decision, though they remain subject to the company-wide Nitaqat system and its bands.

06Which ministry supervises pharmacy Saudization?

MHRSD issues the decision with the Ministry of Health, which supervises pharmacy and dental compliance. The Saudi Press Agency reported that the Ministry of Municipalities and Housing supervises the separate engineering decision.

07Has the pharmacy rate changed since 2025?

StrongYes has not found a published MHRSD change to the three pharmacy rates since 27 July 2025. Dentistry, announced in the same decision, moved to 55% on 27 January 2026.

Sources

  1. Clyde & Co: The first Saudisation updates of 2026. Clyde & Co, 2026-02.
  2. MHRSD: Start of implementing the decision to raise Saudization rates for pharmacy, dentistry and technical engineering professions. Ministry of Human Resources and Social Development, 27 July 2025.
  3. Saudi Press Agency: Human Resources Ministry raises Saudization rates in pharmacy, dentistry and engineering. Saudi Press Agency, 27 July 2025.
  4. Argaam: Saudization for pharmacy professions in Saudi Arabia to start on July 27. Argaam.

This page explains Saudi workforce localization rules for general information. It is not legal advice. Rules change, so confirm against the official MHRSD decision linked above and take advice from a qualified Saudi legal adviser before acting. StrongYes is an independent publication and is not affiliated with MHRSD, Qiwa or any Saudi government body. Full disclaimer.