EDE activates mechanism to end monopoly on medical products

This measure is implemented in accordance with Federal Decree-Law No. (38) of 2024 on Medical Products, Pharmacists and Pharmaceutical Establishments. It aligns with the UAE’s strategic priorities to strengthen national preparedness, enhance pharmaceutical security, ensure the sustainable availability of medical products, and improve the country’s attractiveness as a global investment destination while expanding treatment options for patients.

Ensuring sustainable supply and preventing disruptions

The mechanism, being implemented for the first time in the UAE, seeks to prevent monopolistic practices and reduce the risk of supply disruptions caused by emergencies or operational challenges. It ensures continuous availability of medical products and supports healthcare facilities in meeting patient needs at all times.

It also enhances supply chain flexibility by enabling faster responses to demand fluctuations and public health emergencies, improving inventory management, and accelerating the distribution of medical products across all emirates.

Enhancing competition and distribution efficiency

The initiative will diversify distribution channels and prevent monopolistic control over quantities or supply timing. It is also expected to strengthen competitiveness among pharmaceutical establishments, promote fair competition in logistics services, and improve standards related to quality, storage, and transportation.

Strengthening pharmaceutical security and investment environment

Saeed bin Mubarak Al Hajeri, Minister of State and Chairman of the EDE Board of Directors, said the mechanism reflects the UAE’s public policy direction to build a national pharmaceutical system capable of keeping pace with evolving health and economic developments.

He affirmed that the EDE is committed to diversifying supply chains, enhancing regulatory efficiency, and establishing a flexible legislative environment to ensure pharmaceutical market sustainability and protect public health. He added that this approach strengthens drug security as a core pillar of comprehensive health security.

Al Hajeri noted that pharmaceutical investment is one of the UAE’s key strengths regionally and globally, positioning the country as a major destination for investment. He highlighted that the UAE’s advanced infrastructure and modern regulatory frameworks encourage global pharmaceutical companies to establish regional operations and manufacture innovative and generic medicines locally.

He also reaffirmed the UAE leadership’s commitment to supporting innovation and expanding investment in the healthcare and pharmaceutical sectors.