The UAE Government announces New Mechanism to Break Monopoly on Medical Products marks a significant regulatory milestone for the country’s healthcare and pharmaceutical sector. On February 24, 2026, the Emirates Drug Establishment (EDE) activated a first-of-its-kind framework requiring pharmaceutical companies operating in the UAE to appoint more than one authorised local agent for each medical product they market. This new mechanism is implemented under Federal Decree-Law No. (38) of 2024 Governing Medical Products, Pharmacists and Pharmaceutical Establishments and reflects the UAE’s strategic priorities to reinforce drug security, enhance supply chain resilience, and strengthen regulatory oversight.
This policy shift replaces the longstanding single-agent model, which has historically concentrated distribution rights with a sole local partner. By mandating multiple appointed agents, the UAE aims to diversify distribution channels, mitigate the risk of supply disruptions, and ensure continuous availability of essential medicines across all emirates, even during emergencies or operational challenges. The change also promotes fair competition, enhances supply chain flexibility, and supports faster responsiveness to demand fluctuations.
Saeed bin Mubarak Al Hajeri, Minister of State and Chairman of the EDE Board, emphasised that the mechanism aligns with broader public policy goals to build a resilient national pharmaceutical ecosystem, attract investment, and safeguard public health. He noted that this regulatory evolution will enhance the UAE’s competitive position as a global destination for pharmaceutical investment while expanding treatment options and improving distribution efficiency nationwide.
For stakeholders across healthcare, logistics, and regulatory compliance, this development underscores the UAE’s commitment to innovative governance, supply chain security, and market competitiveness in the pharmaceutical sector.
Please refer to the following media report from the Official Emirates News Agency (WAM) about the new pharmaceutical distribution mechanism: