UAE Activates New Mechanism to End Medicine Monopoly
UAE's new pharmaceutical reforms target accessibility, supply chain resilience, and enhanced investment opportunities.
Medicines are set to become more accessible and less prone to shortages in the UAE after the Emirates Drug Establishment (EDE) introduced a first-of-its-kind mechanism aimed at ending the monopoly on medical products.
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Under the new rule, pharmaceutical companies must appoint more than one authorised agent for every medical product they market in the country. The measure was announced on Tuesday and is implemented under 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 medicines and medical products nationwide.
“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.
Ending single-agent control
The new mechanism effectively dismantles single-agent control over medical products, reducing the risk of supply disruptions caused by emergencies or operational challenges.
By requiring multiple authorised distributors, the UAE aims to ensure continuity and sustainability in medicine availability, while meeting the needs of patients and healthcare facilities at all times.
The EDE said the move will enhance supply chain flexibility, enabling faster responses to fluctuations in demand and public health emergencies. It is also expected to improve distribution efficiency through better inventory management and accelerate the delivery of medical products across all emirates.
The reform further seeks to diversify distribution channels, prevent monopolistic practices related to quantity control or supply timing, boost competitiveness among pharmaceutical establishments and encourage fair competition in logistics services. Authorities said it will also raise standards for quality, storage and transportation.
Strengthening drug security and investment
Saeed bin Mubarak Al Hajeri, Minister of State and Chairman of the Board of Directors of the Emirates Drug Establishment, said the mechanism forms part of the UAE’s broader public policy approach to developing a resilient national pharmaceutical ecosystem.
“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,” Al Hajeri said.
He added that ensuring the continuous availability of medical products reinforces drug security as a core pillar of comprehensive health security.
“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,” he said.
Al Hajeri further 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.”
Market stability and governance
Fatima Al Kaabi, Director General of the Emirates Drug Establishment, said the regulatory step will significantly improve medical product distribution and supply management efficiency.
She said the initiative will enhance the system’s ability to adapt to evolving health challenges while supporting market stability and sustainability in line with international best practices.
“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,” Al Kaabi said.
The EDE also confirmed that encouraging investment in medical manufacturing and research and development remains a priority under its current strategic plan, as the UAE seeks to strengthen its position as a regional and global pharmaceutical hub.