UAE Reviews Medicine Pricing Policy as Lawmakers Call Out Cost Gaps Affecting Patients
The United Arab Emirates (UAE) has initiated a significant review of its national medicine pricing policy in response to mounting concerns from lawmakers and the public over high drug costs. During a recent session of the Federal National Council (FNC), officials acknowledged that medicine prices in the UAE remain elevated compared to regional and international benchmarks, prompting the formation of a high-level multi-ministry committee to overhaul regulations and enhance market transparency.
Addressing the Price Gap
Despite existing official price lists and a federal procurement system, FNC members highlighted a persistent and troubling gap between government procurement costs and the final prices patients pay at private pharmacies. This discrepancy became especially pronounced during the Covid-19 pandemic, leading to shortages and price spikes. Lawmakers identified weak monitoring and enforcement as key reasons some medicines exceed official reference prices, raising affordability concerns for patients with chronic conditions like diabetes and hypertension.
Pressure for Tangible Patient Relief
The core objective of the review is to deliver measurable financial relief. FNC member Naama Al Sharhan emphasized that any policy changes must result in lower out-of-pocket costs for patients, particularly those on long-term medication. She reported that the UAE Health Minister has shown flexibility and accepted parliamentary recommendations, but stressed that success will be judged by real price reductions at the pharmacy counter, not just new regulations.
Strengthening Oversight and Transparency
A recurring theme in the FNC debate was the need for stronger regulatory oversight to ensure price compliance across all pharmacies. Lawmakers argued that without consistent enforcement, pricing disparities will persist. There were also strong calls for greater market transparency regarding drug pricing and product information to foster a more competitive and fair pharmaceutical market.
Boosting Local Manufacturing as a Strategic Solution
A central pillar of the proposed reform is the expansion of local pharmaceutical manufacturing. Lawmakers, including Mohammed Al Kashf, advocated for increased domestic production to enhance drug security, reduce import dependency, and lower costs. They noted that UAE-manufactured medicines meet global quality standards, but consumer awareness needs to be improved. Encouraging international pharmaceutical companies to establish production facilities in the UAE was highlighted as a key strategy.
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The Path Forward
The newly formed committee is tasked with developing concrete measures to align UAE drug prices more closely with global levels. The ultimate benchmark for success will be whether patients—especially those managing chronic illnesses—experience tangible cost savings. By combining stricter price regulation, enhanced transparency, and a push for local drug production, the UAE aims to create a more affordable, resilient, and patient-centric pharmaceutical sector, aligning with its broader goals for a sustainable and accessible healthcare system.
