Healthcare accessibility in the UAE has transformed over the past few years, with retail pharmacies becoming the preferred option for daily medical requirements. The country’s pharmaceutical market grew to AED 17.2 billion in sales in 2024, with private operators outpacing public competitors and reshaping how the region’s residents access healthcare.

This performance gap reflects fundamental shifts in consumer behaviour. Residents increasingly seek convenient healthcare services, like retail pharmacies, outside traditional hospital settings. Prescription drugs and over-the-counter medicines dominate the revenue mix, accounting for 80% of total sales, cementing these pharmacies as the primary channel for immediate healthcare needs across the country.

Traditional pharmacy chains have operated as captive extensions of hospitals until now. However, a new wave of independent, omnichannel players is reshaping the market.
 

• Aster Pharmacy operates 245+ outlets with a higher percentage of clinic-linked pharmacies that provide prescription drugs. The chain has the highest insurance penetration among major players.
   

• Life Pharmacy has built the largest chain with 475+ stores. The company focuses on value-oriented positioning with a strong emphasis on location selection and marketing campaigns.
   

• BinSina positions itself as a premium brand for over-the-counter medicine and personal care products. The chain generates high ticket sizes compared to market competitors.
   

• Supercare blends nutrition and skincare offerings while promoting private labels like New Chapter and Good Health. This shows the evolution toward wellness-focused retail concepts.
   

• Nahdi, with over 1,150 pharmacies across Saudi Arabia is now expanding into the UAE market. The company brings proven regional omnichannel expertise with extensive coverage across GCC markets.

The UAE's pharmacy market is becoming increasingly competitive as new players with a presence in allied sectors or other GCC countries enter the market, challenging existing players. At the same time, consolidation is increasing as large chains acquire smaller players to retain a larger market share and expand presence.

Within this competitive environment, digital transformation is changing what businesses need and how they engage with customers. E-commerce platforms, loyalty apps, and home delivery services have shifted from competitive advantages to baseline customer expectations.

Beyond digital capabilities, the focus on in-house brands and over-the-counter products has emerged as a high-margin differentiation strategy. This aligns with rising demand for preventive health and wellness, which continues driving growth in supplements and skincare categories. Pharmacies are responding to this by including more skincare and wellness products to their inventory, with many employing dedicated derma beauticians to enhance customer experience and drive footfall.

Meanwhile, across the broader healthcare sector, hospitals are looking for partners to manage their pharmacy requirements efficiently, creating new partnership opportunities in the market.

Despite robust market growth, several gaps persist within the sector. Premium pharmacy chains underutilise their loyalty programmes, indicating a missed opportunity to enhance customer lifetime value. Similarly, low e-commerce revenue from established pharmacies with strong offline presence has digital growth potential.

While substantial opportunities exist to boost cross-selling and upselling through analytics, most retailers still lack the advanced systems required for product recommendations and purchasing pattern analysis.

Finally, integration with diagnostics and preventive services remains untapped. This offers potential for complete health ecosystems and recurring revenue streams.

Market entry requires identifying high-potential locations through a detailed analysis. This uses weighted scoring across population density, purchasing power, pharmacy saturation, healthcare facility proximity, and future residential pipeline.

Identifying underserved, developing areas creates opportunities. Emerging communities in growing areas across the UAE show low pharmacy density. If expansion aligns with residential development timelines, they offer first-mover advantages.

Ultimately, pharmacies must prioritise locations that align with their brand strategy and drive stronger operational performance. This includes focusing on prescription-heavy models, wellness-oriented concepts, or tourist-centric locations.

The UAE's retail pharmacy market presents substantial growth potential for pharmacy operators who can navigate its complexity. Success demands smart location selection, differentiated experiences, and operational excellence while meeting consumer expectations.

For operators seeking market expansion, JLL's healthcare team offers end-to-end advisory services including location selection, market entry strategy, and competitive analysis. Our proven expertise transforms market insights into successful outcomes. Learn more about our healthcare consulting services at JLL MENA.