UAE announces measures to break monopoly on medical products

The Emirates Drug Establishment (EDE) has announced the activation of a new mechanism, the first of its kind, aimed at breaking the monopoly on medical products through obligating pharmaceutical companies to appoint more than one agent for each medical product traded in the country.

This comes in the framework of implementing the provisions of Federal Decree-Law No. 38 for 2024 governing medical products, pharmacists and pharmaceutical establishments.

The decision aligns with the UAE’s commitment to enhancing national preparedness in pharmaceutical security and ensuring the continued availability of medical products in the country.

It also boosts the attractiveness of the business environment for investment, thereby strengthening the UAE’s global competitiveness and expanding the range of treatment options available for the same disease.

The new mechanism aims at ending the monopoly on medical products for the first time and reducing the risk of supply disruptions in emergencies or operational challenges, thereby ensuring the sustainable availability of medical products and meeting the needs of patients and health facilities at all times.

It also enhances the resilience of supply chains by accelerating the response to changes in demand and health crises.

Furthermore, it increases the efficiency of distribution by improving inventory management and accelerating the efficient delivery of medical products to all the emirates.

Apart from its role in diversifying distribution channels and preventing monopolistic practices that control the quantity or timing of supplies, the mechanism stimulates fair competition in logistics services and raises standards of quality, storage, and logistics.

According to Saeed Bin Mubarak Al Hajeri, Minister of State and Chairman of EDE, this mechanism comes as part of the public policy approach adopted by the UAE to develop the national pharmaceutical system in order to keep pace with health and economic changes.

It is based on enhancing the diversification of supply chains, raising the efficiency of regulatory frameworks and establishing a flexible legislative environment that supports the sustainability of the pharmaceutical market and protects public health, he said.

He explained that this approach would contribute to ensuring the continued availability of medical products, thereby enhancing pharmaceutical security as one of the basic components of comprehensive health security.

“Investing in the pharmaceutical sector is one of the most important strengths of the UAE regionally and globally and renders it a centre of attraction for investment flows now and in the future,” he said.

“The UAE is distinguished for its modern infrastructure and systems that encourage global companies to find their regional position and produce their innovative and generic medicines in the UAE, thanks to the wise leadership’s support for innovation and creativity and its encouragement of investment in the health sector in general and the pharmaceutical sector in particular,” he added.

Meanwhile, Dr Fatima Al Kaabi, Director General of EDE, indicated that this regulatory step, which came as part of the efforts to regulate the distribution of medical products, contributed to raising the efficiency of supply management and enhancing the system’s ability to adapt to health changes.

The step supports the stability, growth and sustainability of the pharmaceutical market and embodies the EDE’s commitment to implementing effective governance frameworks consistent with best international practices, she added.

She affirmed that the UAE is poised for further growth in attracting pharmaceutical industries in the upcoming period and achieving a new quantum leap in pharmaceutical investment at the regional and global levels.