UAE rules aimed at preventing a monopoly on medical products in the country could reduce the cost of healthcare and reduce drug shortages, doctors have said.
This week's announcement by the Emirates Drug Establishment relates to a law forcing drugmakers to register more than one authorised agent for each medicine, increasing competition and lowering prices.
Hospitals have faced issues in recent years to access certain drugs due to supply chain disruption, manufacturing delays and global events increasing demand.
The most recent supply issues were felt in 2023 and 2024 with GLP-1 drugs, such as Ozempic, Wegovy and Mounjaro, used to treat diabetes and obesity.
High demand for use of the drug for weight loss left patients with diabetes facing challenges accessing their medication from pharmacies in Dubai and Sharjah.
Shortages of other medications used to treat Attention Deficit and Hyperactivity Disorder have also been reported, along with the antidepressant Prozac and Ranitidine pills used to treat heartburn.
A new EDE mechanism will require companies to appoint more than one authorised UAE agent for each medical product to strengthen market competitiveness.
Dr Fatima Al Kaabi, director general of the EDE, said the legislation will play a key role in regulating medical product distribution, improving supply management efficiency and enhancing the system’s ability to adapt to evolving health challenges.
“The UAE is well positioned to achieve further growth in attracting pharmaceutical industries in the coming period, and to deliver a new qualitative leap in pharmaceutical investment at both the regional and global levels,” she said.
Why market controls matter
By preventing monopolistic practices used by dominant firms to control markets, fix prices and stifle competition, experts said the initiative will contribute to diversifying distribution channels.
It will also boost competitiveness among pharmaceutical establishments, encouraging fair competition in logistics services and raise standards for quality, storage and transportation.
A monopoly in the pharmaceutical industry usually occurs when a company holds patent protection or exclusive drug marketing rights, designed to reward research and development. However, when only one company produces a medication, several challenges arise.
“Without competition, companies can set prices with limited market pressure,” Dr Malaz Yabrodi, an internal medicine specialist at Medcare Hospital Sharjah, told The National.
“This may result in high drug prices, increased costs for patients, financial strain on healthcare systems and reduced medication adherence.
“If only one manufacturer produces a medication, availability depends entirely on that company’s production capacity and distribution decisions.”
Any manufacturing issue, regulatory delay or supply disruption can cause shortages, which is particularly concerning for essential medications such as cancer drugs and critical antibiotics.
Reduced market competition also limits natural benefits including price reduction and quality control.
Has it worked anywhere else?
Similar anti-monopoly controls were implemented in China in 2025 when health authorities clamped down on reverse payment agreements.
These were when brand-name pharmaceutical suppliers paid or provided indirect benefits to generic drug manufacturers for not challenging the validity of patents, or promising not to sell within certain territories.
Meanwhile in the US, the Federal Trade Commission aggressively monitors the pharmaceutical industry for anti-competitive mergers.
The EU also has sector-wide enforcement in play, and actively investigates any pay-for-delay agreements and abuses of dominant positions.
As a major producer of cheaper, generic medicines, India uses its own competition laws to ensure affordable access to drugs.
Dr Sriram Raghavendran, a psychiatrist at Canadian Specialist Hospital in Dubai, said removing “single-agent” control meant a distributor’s logistical failure would no longer dictate a patient’s treatment plan.
His patients frequently face challenges when specific psychotropic medications go out of stock, such as withdrawal symptoms and relapse, he said.
“This policy ensures that if one agent faces operational challenges or delays, others can step in, maintaining the steady availability of essential drugs like mood stabilisers, antidepressants or antipsychotics,” said Dr Raghavendran.
“This gives me more flexibility in selecting the most effective and cost-efficient brands for my clinical goals.
“Increased market competition among distributors is anticipated to lower drug costs over time, making long-term psychiatric care more affordable and accessible for patients.”
Patient relief
Victoria McKeown, who takes antidepressant fluoxetine to manage anxiety associated with autism, welcomed the announcement.
“Every month, there’s this frantic scramble to track down medication,” she told The National.
“For those of us on controlled prescriptions for mental health, the window is small and the pressure is real.
“You’re trying to stay regulated while navigating shortages, phone calls and uncertainty – and that irony isn’t lost on me.
“Honestly, it’s the task I dread most each month. And I know I’m not the only one.”
Samer Batter, a long-time Dubai resident, said the move would help with his monthly Dh600 bill for essential heart and cholesterol medication.
“This will be a great relief to me and to all people in the UAE, as many medications are more expensive here,” he said.
“There was a brief period when I couldn’t get Warfarin, a vital, life-saving blood thinner used to treat harmful blood clots.
“More recently, I faced a similar issue with a hypertension treatment. The pharmacist recommended an alternative, but it didn’t work. I nearly fainted while driving and after consulting my doctor, he insisted that I stick strictly to the original brand.”
