Emirates Pharmaceutical Company announces breaking the monopoly on medical products in the Emirates

The Emirates Pharmaceutical Corporation announced, in a first of its kind, the activation of a new mechanism aimed at breaking the monopoly, and obliging pharmaceutical companies to appoint more than one agent for each medical product circulated in the country, within the framework of implementing the provisions of Federal Decree Law No. (38) of 2024, regarding medical products, the pharmacy profession, and pharmaceutical facilities. The decision comes in line with the UAE’s trends in enhancing national readiness with regard to drug security, and ensuring the sustainability of the availability of medical products in the country. It also increases the attractiveness of the business environment for investment, enhancing the country’s global competitiveness and expanding the treatment options available for the same disease.

The new mechanism aims to end the monopoly of medical products for the first time, and reduce the risks of interruption of supplies in cases of emergency or operational challenges, ensuring the sustainability of the availability of medical products and meeting the needs of patients and health facilities at all times.

It also enhances supply chain resilience by accelerating response to demand changes and health crises. It increases distribution efficiency by improving inventory management and accelerating the efficient arrival of medical products to the various emirates of the country.

This mechanism contributes to diversifying distribution channels and preventing monopolistic practices that would control the quantities or timing of supply. The mechanism also contributes to stimulating fair competition in logistics services, and raising standards of quality, warehousing and logistics services.

Minister of State and Chairman of the Board of Directors of the Emirates Drug Corporation, Saeed bin Mubarak Al Hajri, confirmed that this mechanism falls within the general policy approach adopted by the state to develop the national pharmaceutical system, to keep pace with health and economic changes, by 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 the protection of public health.

He explained that this trend contributes to ensuring the continued availability of medical products, thus enhancing drug security as one of the basic components of comprehensive health security.

He said that pharmaceutical investment is one of the most important strengths that distinguish the UAE regionally and globally, which makes it an attractive center for investment flows now and in the future.

Al Hajri added: “The UAE is distinguished by the presence of modern infrastructure and systems that help invest in the pharmaceutical sector, and encourage international companies to find their regional position and produce their innovative and similar medicines in the UAE, in light of the wise leadership’s support for innovation and creativity, and encouraging investment in the health sector in general, and the pharmaceutical sector in particular.”

For her part, Director General of the Emirates Pharmaceutical Corporation, Dr. Fatima Al Kaabi, indicated that this regulatory step comes within the efforts to regulate the distribution of medical products, and contributes to raising the efficiency of supply management and enhancing the system’s ability to adapt to health changes, in a way that supports the stability, growth and sustainability of the pharmaceutical market, and embodies the Emirates Drug Corporation’s commitment to applying effective governance frameworks consistent with international best practices.

She stressed that the UAE is prepared for further growth in attracting pharmaceutical industries during the coming period, and to achieve a new qualitative leap in the field of pharmaceutical investment at the regional and global levels.

She pointed out that the Emirates Pharmaceutical Corporation includes within its current strategic plan the encouragement of investment in the pharmaceutical sector in the country, in implementation of the directives of our wise government aimed at providing health care in the country with the highest standards of quality and efficiency, and ensuring drug security in all cases, including crises and emergencies.