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Justice GCC > Legislation > UAE Drug Authority Activates Multi-Agent Rule to Dismantle Pharmaceutical Monopolies
Legislation

UAE Drug Authority Activates Multi-Agent Rule to Dismantle Pharmaceutical Monopolies

NewsDesk
Last updated: February 24, 2026 12:00 am
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The Emirates Drug Establishment activated a new mechanism requiring pharmaceutical companies to appoint multiple authorised agents for each medical product, Gulf Today reported on February 24, 2026. This activation falls under Federal Decree-Law No. 38/2024 on Medical Products, the Pharmacy Profession, and Pharmaceutical Establishments. The EDE described the step as a first-of-its-kind initiative designed to dismantle long-standing monopolies in the sector. Officials highlighted its role in strengthening national pharmaceutical security and diversifying supply chains to guarantee continuous medicine availability.

According to the Gulf Today article, the reform targets the elimination of exclusive-agent control that has historically dominated the market. The EDE assessment found that single-agent systems increase the potential for supply disruptions amid emergencies or company-specific challenges. Expanding authorised agents will enhance distribution resilience while improving overall operational efficiency, the regulator added. Delivery timelines are set to shorten and inventory practices to strengthen as a direct result of the policy shift.

A Baker McKenzie analysis issued in January 2025 detailed how the 2024 decree-law supersedes the 2019 version governing the same areas. The legislation encompasses pharmaceuticals, medical devices, biological products, nutritional supplements, cosmetics and genetically modified organisms for medical use, the law firm noted. Pharmaceutical establishments such as manufacturing plants, warehouses, pharmacies and biobanks also fall within its regulatory ambit.

Research and Markets figures show the UAE pharmaceuticals market stood at USD 4.73 billion in 2024 and is projected to expand to USD 7.38 billion by 2030. The sector is expected to register a compound annual growth rate of 7.65 percent over that period, according to the same data provider. An IMARC Group forecast placed the market value at USD 4.45 billion in 2025 with growth to USD 8.59 billion by 2034 at a 7.01 percent CAGR.

Pharmaknowl data indicates the wider GCC pharmaceutical market reached USD 23.7 billion in 2024 with expectations it will climb to USD 49 billion by 2033. The UAE accounts for a significant share of this regional activity while maintaining an import reliance of approximately 80 percent, industry compilations show. The multi-agent requirement forms part of efforts to mitigate such dependencies and reinforce local supply chain robustness, the EDE statement conveyed.

The EDE further stated that the policy change will make the UAE a more appealing hub for pharmaceutical investments by fostering a competitive environment. Companies operating in the sector will need to update their registration processes to incorporate additional agents for existing and new products. This adjustment is anticipated to support faster market responses and better alignment with national health security objectives.

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ByNewsDesk
Justice GCC NewsDesk is the desk responsible for Justice GCC's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.
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