The UAE has introduced a new multi-agent system through the Emirates Drug Establishment to end medicine monopolies and prevent supply shortages. The reform aims to strengthen drug security, improve distribution efficiency, and enhance pharmaceutical market stability across the country.
Dubai: In a significant move aimed at improving medicine availability and preventing supply shortages, the UAE has introduced a groundbreaking regulatory mechanism designed to end monopolistic control over medical products. The decision was implemented by the Emirates Drug Establishment (EDE), marking a major shift in how pharmaceutical products are distributed across the country.
The newly activated policy requires pharmaceutical companies to appoint more than one authorised agent for each product they register and market in the UAE. By eliminating the long-standing single-agent model, authorities aim to ensure that medicines are more accessible, less prone to shortages, and distributed more efficiently across all emirates.
This reform is part of the Federal Decree-Law No. (38) of 2024 governing medical products, pharmacists, and pharmaceutical establishments. According to the EDE, the initiative supports the UAE’s broader national priorities, including enhancing pharmaceutical security, strengthening healthcare readiness, and ensuring the sustainable supply of essential medical products.
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Under the previous system, many pharmaceutical products were distributed through a single authorised agent, creating potential bottlenecks in supply. If disruptions occurred—whether due to logistical challenges, operational issues, or global crises—patients and healthcare providers could face delays or shortages.
The new mechanism directly addresses these risks by mandating multiple authorised distributors for every medical product. By diversifying supply channels, authorities aim to reduce vulnerability to emergencies and ensure continuity in the availability of medicines.
The EDE emphasized that this approach will increase flexibility within the pharmaceutical supply chain. It will allow for faster responses to sudden spikes in demand or public health emergencies, improve inventory management, and enhance distribution efficiency throughout the country. Ultimately, this is expected to guarantee uninterrupted access to medications for patients and healthcare facilities alike.
Additionally, the reform is designed to prevent monopolistic practices related to stock control or timing of supply. By encouraging fair competition among pharmaceutical establishments and logistics providers, the UAE hopes to raise standards in storage, transportation, and overall quality management.
Saeed bin Mubarak Al Hajeri, Minister of State and Chairman of the Board of Directors of the Emirates Drug Establishment, described the mechanism as a key component of the UAE’s public policy framework aimed at building a resilient pharmaceutical ecosystem.
He explained that the initiative reflects the country’s commitment to diversifying supply chains, improving regulatory efficiency, and establishing a flexible legislative environment capable of adapting to both health and economic developments. According to Al Hajeri, maintaining the continuous availability of medical products is fundamental to strengthening overall health security in the UAE.
He further highlighted that pharmaceutical investment remains one of the country’s strategic strengths, positioning the UAE as a leading destination for regional and global investment in the sector. By creating a competitive and investor-friendly environment, the government aims to reinforce the nation’s global standing in healthcare innovation and manufacturing.
Al Hajeri also noted that the UAE offers advanced infrastructure and modern regulatory frameworks that support pharmaceutical investment. These advantages encourage international companies to establish regional headquarters and manufacturing facilities within the country, producing both innovative and generic medicines.
The leadership’s continued focus on innovation and creativity in healthcare is expected to accelerate growth in pharmaceutical research and development. The reform aligns with the broader national vision of expanding domestic manufacturing capacity and reducing dependency on limited supply channels.
Fatima Al Kaabi, Director General of the Emirates Drug Establishment, stated that the regulatory measure will significantly improve the governance of medical product distribution. She emphasized that the system will now be better equipped to manage supply chains efficiently while adapting to evolving public health challenges.
Al Kaabi added that the initiative will enhance market stability and sustainability by aligning pharmaceutical governance with international best practices. The multi-agent requirement is expected to strengthen competition, improve service standards, and support long-term resilience in the pharmaceutical sector.
She also pointed out that encouraging investment in medical manufacturing and research and development remains a priority under the Establishment’s strategic plan. The UAE is well positioned to attract further pharmaceutical industries and achieve substantial growth in both regional and global markets.
By ending monopolistic control and promoting diversified distribution channels, the UAE has taken a decisive step toward safeguarding drug security under all circumstances—including crises and emergencies. The reform not only ensures better access to medicines but also reinforces the country’s ambition to become a global hub for pharmaceutical excellence and healthcare innovation.
Source: Gulf News
