UAE enhances pharmaceutical security through competition-based drug distribution reform / Photo: File
Finding essential medicines has become easier, and potentially less expensive, for UAE residents. On Tuesday, February 24, 2026, the Emirates Pharmaceutical Corporation activated a historic mechanism aimed at dismantling the long-standing “sole agent” monopoly on medical products.For decades, exclusive distributors controlled many life-saving drugs, but that era is beginning to end. This new rule directly responds to strategic priorities aimed at securing the country’s drug supply while making healthcare more competitive and patient-centric.
New medical protocols for the UAE for 2026
The United Arab Emirates has introduced a first-of-its-kind rule aimed at breaking monopolies in the pharmaceutical sector and enhancing the availability of medicine nationwide. The new framework, announced by the Emirates Drug Corporation (EDE), requires drugmakers to register multiple authorized agents for each drug they market in the UAE, a departure from the previous single agent model that often limited supply options. This change is part of Federal Decree Law No. (38) of 2024 regarding the regulation of medical products, pharmacists and pharmaceutical institutions, which aims to improve the flexibility and competitiveness of the healthcare sector.
Under the old model, a single distributor would import, distribute and supply the drug type. This can sometimes slow delivery, reduce flexibility in responding to sudden spikes in demand or supply chain disruptions, and create the conditions for monopolistic control. The new rule is expected to mitigate these risks by expanding choice and competition among authorized dealers.
What does the new mechanism mean?
The primary goal of the reform is to ensure the continuous availability of medical products in all emirates.
By licensing more than one agent for each product, the UAE aims to facilitate pharmacies, hospitals and patients’ access to a wide range of medicines without delay. Officials say this will enhance supply chain resilience, allowing for faster responses when demand suddenly spikes, such as during public health emergencies, and reducing the chance of shortages. The mechanism also aims to enhance distribution efficiency across the UAE by improving inventory management and accelerating delivery times. This means that if one supplier experiences operational, logistical or unexpected challenges, others can step in to keep supply lines stable. Strengthening distribution networks is expected to benefit healthcare providers and patients alike, especially in remote or high-demand areas.
Encouraging pharmaceutical competition in the United Arab Emirates
Officials from the Economic Development Corporation linked the reform to broader economic and investment strategies. By opening the market to multiple authorized dealers for each product, the UAE is working to encourage fair competition and diversity in distribution channels.
This is attractive to global pharmaceutical companies looking to invest or expand their presence in the Middle East.Saeed bin Mubarak Al Hajri, Minister of State and Chairman of the Board of Directors of the Emirates Development Foundation, said that this step is consistent with national priorities to strengthen pharmaceutical infrastructure, enhance regulatory efficiency and support a strong healthcare ecosystem. He stressed that pharmaceutical investment is one of the economic strengths of the UAE, and that modernizing the market framework enhances the country’s global competitiveness.
Improve market stability
Fatima Al Kaabi, Director General of the Emirates Pharmaceutical Corporation, stressed that in addition to continuity of supply, the reform will support market stability and sustainability by aligning local practices with the best international standards. She pointed out that the UAE is well placed to attract more pharmaceutical industries, advance research and development, and enhance its role as a regional center for pharmaceutical manufacturing and innovation.EDE’s broader strategic efforts also focus on strengthening warehousing, quality control, transportation standards and regulatory oversight, all aimed at preparing the healthcare sector to better respond to both routine demand and extraordinary health challenges.
