Medicine Prices In UAE Under Review As Officials Admit Cost Gap

(MENAFN- Khaleej Times)

The UAE is reviewing its drug pricing framework and preparing initiatives to encourage local manufacturing of essential medicines, as parliamentarians renewed calls for tighter price control and greater transparency to ease the burden on patients.

During a recent Federal National Council (FNC) session on pharmaceutical security, officials acknowledged that medicine prices in the UAE remain higher than in regional and global markets, while confirming that a high-level, multi-ministry committee has been formed to study pricing mechanisms and market regulation.

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The Emirates Drug Establishment told the council it is revisiting drug pricing rules and developing initiatives to incentivise local manufacturers to produce essential medicines, particularly those used to treat chronic conditions, as part of broader efforts to improve availability and stabilise the market.

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Officials also recognised a clear difference between government procurement prices and those in private pharmacies, despite the existence of a federal unified procurement initiative through which medicines are purchased directly from manufacturers.

Pricing review must translate into patient impact

Commenting on the discussion, FNC member Naama Al Sharhan said the council had pressed for a reassessment of medicine pricing, stressing that any reconsideration - especially for essential drugs - would have a direct and positive impact on patients.

“Medicine today has become extremely important, particularly for people with chronic diseases such as diabetes and high blood pressure,” she said.“Revisiting pricing, even if it is focused on essential medicines, would be very positive.”

Al Sharhan described the health minister's response during the session as flexible and receptive, expressing optimism that the issue would move forward following parliamentary recommendations.

“The minister was very flexible, and I believe this decision will see the light,” she said.“What matters now is follow-up. We will know there is progress when recommendations are translated into clear direction and when specific medicine prices are reviewed.”

She also pointed to weak monitoring as a key reason for price variation across pharmacies, despite existing pricing rules.

“Sometimes prices are said to be unified, but in reality, they are not,” she said.“There is no real follow-up, and that is where the gap lies.”

Transparency and local manufacturing

Both FNC members and officials highlighted the role of local pharmaceutical manufacturing in addressing pricing pressures and strengthening national drug security. Al Sharhan said expanding domestic production would not only support self-sufficiency during crises but also help build consumer confidence in locally made medicines.

“Medicines manufactured in the UAE meet global standards,” she said, citing successful locally produced treatments.“There is a perception issue among some consumers, but our medicines are competitive and of high quality.” Greater transparency around medicine information would also contribute to a healthier market, she added, alongside improved coordination between regulators, manufacturers and policymakers.

'Price differences should be minimal'

FNC member Mohammed Al Kashf said the council had been clear that price differences between medicines sold in the UAE and those in other markets should be minimal, calling for stronger price regulation and enforcement.“We are demanding that these differences be almost non-existent,” he said.“The market is open, but we cannot accept excessive pricing, especially when some large companies attempt to dominate the market.”

Al Kashf confirmed that official price lists for medicines already exist, but said some products exceed those prices during periods of high demand, pointing to shortages and price spikes seen during the Covid-19 pandemic.“The pricing framework is there, but some medicines are exaggerated in price when demand increases,” he said.“That is why the market needs stronger regulation.”

He added that the health minister had confirmed during the session that all committee recommendations were accepted and would be followed up until implementation.“The minister said clearly that all recommendations are under consideration and follow-up until they see the light,” Al Kashf said.

Local production seen as priority solution

According to Al Kashf, expanding local pharmaceutical manufacturing should be the top priority, alongside securing long-term supplies of raw materials and encouraging international drugmakers to establish production facilities in the UAE.“When medicines are manufactured locally, availability improves, costs are lower than importing, and the government can better monitor prices,” he said.“This creates a competitive price and stronger oversight.”

As the pricing review progresses, members said the ultimate measure of success will be whether patients - particularly those reliant on long-term medication - feel a tangible difference at private pharmacies.

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