Khaberni - The Emirates Foundation for Medicine announced, in a first-of-its-kind precedent, the implementation of a new mechanism aimed at breaking monopolies, which obligates pharmaceutical companies to appoint more than one agent for each medical product traded in the country. This is part of the implementation of the provisions of the Federal Decree-Law No. (38) for the year 2024 regarding medical products, the pharmacy profession, and pharmaceutical establishments. The decision is in alignment with the UAE's directions in enhancing national readiness concerning pharmaceutical security and ensuring the sustainability of medical product availability in the state. It also enhances the attractiveness of the business environment for investment, which boosts the country’s competitiveness globally and expands the available therapeutic options for the same disease.
The new mechanism aims to end the monopoly of medical products for the first time, reducing the risks of supply disruption in emergencies or operational challenges, ensuring the sustainability of medical product availability, and meeting the needs of patients and health facilities at all times.
It also enhances the flexibility of supply chains by speeding up the response to demand changes and health crises. It increases distribution efficiency through improved inventory management and expedites the efficient delivery of medical products across the various Emirates of the state.
This mechanism contributes to diversifying distribution channels and preventing monopolistic practices that could control the quantities or timing of supply. It also stimulates fair competition in logistic services and raises the standards of quality in storage and logistics services.
Saeed bin Mubarak Al Hajri, the Minister of State and Chairman of the Board of Directors of the Emirates Foundation for Medicine, confirmed that this mechanism is part of the general policy approach adopted by the state to develop the national pharmaceutical system, in order to keep up with health and economic changes, through enhancing diversity of supply chains, raising the efficiency of regulatory frameworks, and establishing a flexible legislative environment that supports the sustainability of the pharmaceutical market and public health protection.
He explained that this approach contributes to ensuring the continuous availability of medical products, thereby enhancing pharmaceutical security as an essential component of comprehensive health security.
He said that pharmaceutical investment is one of the key strengths that distinguishes the UAE regionally and globally, making it a major attraction for investment flows now and in the future.
Al Hajri added: «The UAE is distinguished by having modern infrastructure and systems that aid investment in the pharmaceutical sector and encourage global companies to establish their regional presence and produce their innovative and generic drugs in the Emirates, in light of the leadership's support for innovation and creativity, and encouragement of investment in the health sector in general, and the pharmaceutical sector in particular.»
Meanwhile, Dr. Fatima Al Kaabi, General Director of the Emirates Foundation for Medicine, pointed out that this regulatory step is part of the efforts to regulate the distribution of medical products, contributing to improving the efficiency of supply management and enhancing the system's ability to adapt to health variations, supporting stability and growth of the pharmaceutical market and its sustainability, and embodying the commitment of the Emirates Foundation for Medicine to implement effective governance frameworks aligned with the best international practices.
She affirmed that the UAE is poised for further growth in attracting pharmaceutical industries in the upcoming period, aiming to achieve a new qualitative leap in pharmaceutical investment at the regional and global level.
She noted that the Emirates Foundation for Medicine includes in its current strategic plan encouragement for investment in the pharmaceutical sector in the country, in execution of our wise government's directions aimed at providing healthcare in the state with the highest standards of quality and efficiency, and ensuring pharmaceutical security in all situations, including crises and emergencies.
