UAE announces new mechanism to end monopoly of medicines

Dubai: Medicines will be easier to find and less likely to run short in the UAE after the Emirates Drug Establishment (EDE) activated a first-of-its-kind mechanism that breaks the monopoly on medical products.

The new rule announced on Tuesday requires pharmaceutical companies to appoint more than one authorised agent for every product they market in the country.

The measure is implemented under the Federal Decree-Law No. (38) of 2024 Governing Medical Products, Pharmacists and Pharmaceutical Establishments.

According to the EDE, the decision aligns with the UAE’s strategic priorities to strengthen national readiness, enhance pharmaceutical security and ensure the sustainable availability of medical products across the country.

“It also seeks to promote the attractiveness of the business environment for investment, reinforcing the UAE’s global competitiveness and expanding treatment options available for the same condition,” the EDE said.

The new mechanism aims to end the monopoly on medical products and mitigate the risk of supply disruptions resulting from emergencies or operational challenges.

This will help ensure the continuity and sustainability of medical product availability, while meeting the needs of patients and healthcare facilities at all times, the EDE pointed out.

In addition, the mechanism will enhance supply chain flexibility by enabling faster responses to fluctuations in demand and public health emergencies, improving distribution efficiency through better inventory management, and accelerating the delivery of medical products across all emirates.

Furthermore, the initiative will contribute to diversifying distribution channels, preventing monopolistic practices related to quantity control or supply timing, boosting competitiveness among pharmaceutical establishments, encouraging fair competition in logistics services, and raising standards for quality, storage and transportation.

Saeed bin Mubarak Al Hajeri, Minister of State and Chairman of the Board of Directors of the Emirates Drug Establishment, said the mechanism is part of the UAE’s public policy approach to developing a national pharmaceutical ecosystem capable of keeping pace with evolving health and economic developments.

Al Hajeri added: “EDE is committed to strengthening the diversification of supply chains, enhancing regulatory efficiency, and establishing a flexible legislative environment that supports the sustainability of the pharmaceutical market and the protection of public health.”

The minister explained that this approach will help ensure the continuous availability of medical products, thereby reinforcing drug security as one of the fundamental pillars of comprehensive health security.

He said: “Pharmaceutical investment is one of the UAE’s key strengths at both the regional and global levels, positioning the country as a major destination for investment flows, now and in the future.”

Al Hajeri noted: “The UAE provides advanced infrastructure and modern regulatory frameworks that enable pharmaceutical investment and encourage global companies to establish their regional presence and manufacture both innovative and generic medicines in the country.”

He reaffirmed that the UAE leadership is committed to supporting innovation and creativity, as well as strengthening investment in the healthcare sector in general and the pharmaceutical sector in particular.”

Fatima Al Kaabi, Director General of the Emirates Drug Establishment, said the regulatory step will play a key role in regulating medical product distribution, improving supply management efficiency, and enhancing the system’s ability to adapt to evolving health challenges.

Al Kaabi added that the move will also support market stability and sustainability, reflecting the Establishment’s commitment to effective governance frameworks aligned with international best practices.

She affirmed that the UAE is well positioned to achieve further growth in attracting pharmaceutical industries in the coming period, and to deliver a new qualitative leap in pharmaceutical investment at both the regional and global levels.

She also noted that the Emirates Drug Establishment has prioritised encouraging investment in medical manufacturing and research and development as part of its current strategic plan. “We are committed to realising the government’s vision of providing healthcare services at the highest standards of quality and efficiency, while ensuring pharmaceutical security under all circumstances, including during crises and emergencies.”