Explained: Why is UAE reviewing medicine prices? What can lower drug bills in Emirates?

Medicine pricing has become a flashpoint in the United Arab Emirates as lawmakers and health officials wrestle with a persistent cost gap that leaves consumers paying more than expected for essential drugs.

In early 2026, the Federal National Council (FNC) pushed for a thorough review of the nation’s pharmaceutical pricing mechanisms, spotlighting differences between regulated price lists, actual retail costs and broader market dynamics that influence availability and affordability.This development, occurring amid broader healthcare cost debates and inflationary pressure on medical services, reflects a growing focus by Gulf governments on healthcare affordability and pharmaceutical sovereignty.

Here’s why it matters, what has been uncovered so far and what could come next.

The medicine price gap in UAE: Officials acknowledge disparities

During a recent FNC session dedicated to pharmaceutical security, officials acknowledged that medicine prices in the UAE remain elevated compared with regional and global benchmarks. Although the country maintains an official pricing list for medicines, lawmakers and regulators admitted that private pharmacy prices frequently exceed those official rates, especially during high-demand periods.

This “cost gap” or the difference between regulated procurement or government rates and the actual marketplace prices consumers pay, has become a central concern for policymakers. It suggests that price controls alone don’t fully translate into affordability on the ground, raising questions over enforcement, market competition, and transparency.One FNC member described weak monitoring as a key reason for price variation, asserting that unified price lists often exist only on paper.

Without stringent follow-up, some pharmacies charge beyond prescribed rates, undermining efforts to keep drugs affordable.

Impact of UAE's medicine price gap on patients and health outcomes

Lawmakers stressed that reviewing medicine prices is not just a technical policy exercise but something that directly affects patients, especially those managing chronic illnesses such as diabetes, hypertension and other long-term conditions that require regular medication.

UAE residents, Emirati citizens and the large expatriate community alike, rely on both private pharmacies and comprehensive insurance schemes to access essential medications.

However, when prices escalate beyond expected levels, out-of-pocket burdens rise and have the potential to deter adherence to treatment plans.This issue echoes wider concerns reported by health commentators: medical insurance claims in the UAE have hit record highs, with insurance companies paying out Dh16.5 billion in healthcare claims in 2024, largely driven by rising costs in healthcare services and treatments.

In some segments such as cancer care, high drug prices have been singled out as a major cost driver, with advocates pushing for price regulation and better access to generics.

UAE government response: Pricing framework under review

In response to parliamentary scrutiny, the Emirates Drug Establishment confirmed that it is revisiting the pricing framework and is preparing initiatives to improve price regulation and market stability. A joint high-level, multi-ministry committee is now studying the existing pricing rules to identify weaknesses in enforcement and oversight. Lawmakers say the committee will look at:

Parliament members welcomed the health minister’s response as flexible and receptive, suggesting there may be real movement toward concrete reforms in 2026.

Local manufacturing: A strategic priority in the UAE

Beyond pricing mechanics, UAE lawmakers stressed the importance of expanding domestic pharmaceutical production. By encouraging local manufacturing of essential medicines, the UAE could reduce reliance on imports, improve supply chain resilience and crucially retain more control over price and availability. Locally produced medicines that meet global standards could also foster greater consumer confidence, especially if paired with transparency initiatives that educate the public on quality and safety.

Historically, the UAE has relied heavily on imported medicines from Europe, the US and elsewhere, which often cost more than drugs in other markets. This phenomenon is documented in comparative studies and shows that the UAE’s medicine prices can be substantially higher than in countries such as Australia, even after adjusting for purchasing power.

Balancing UAE market dynamics and enforcement

While the unified procurement system in the UAE is designed to buy medicines directly from manufacturers at regulated price points, lawmakers acknowledged that in practice, variations persist. Some key drivers of price variability and cost inflation include:

Independent voices, including residents on community forums, have echoed these observations, noting that medicine prices can vary significantly between pharmacies and that some medications are far more expensive in the UAE than abroad.

In some cases, consumers report prices that are double or more than available alternatives when purchased in other markets, a pattern that reflects inefficiencies or pricing power aggregation in the supply chain.

Drug pricing challenges globally

The UAE situation mirrors broader global debates about drug pricing and pharmaceutical markets. In many advanced economies, policymakers grapple with how best to regulate prices while ensuring continued innovation and access. For example:

These global trends highlight that medicine pricing is a complex interplay between regulation, market forces, public policy and consumer protection, a balancing act that the UAE is now navigating with increasing urgency.

What’s next: Implementation, enforcement and patient impact

The FNC lawmakers have stressed that real progress will be measured by changes felt by patients at the pharmacy counter. Key developments to watch in the coming months include:

For patients, particularly those without comprehensive insurance coverage or with long-term medication needs, these reforms could significantly affect out-of-pocket costs and treatment adherence. For the government and regulators, the challenge will be ensuring that policy changes translate into tangible affordability gains rather than remain theoretical.

This may include strengthening monitoring systems, penalties for non-compliance and expanded public access to pricing data. As reforms unfold in 2026 and beyond, patients, insurers and healthcare providers alike will closely watch how these policy shifts influence prices at the pharmacy counter and access to essential medicines across the UAE.The UAE’s review of medicine prices, driven by parliamentary concern over cost gaps and consumer burden, represents a significant moment in the country’s healthcare policy landscape. By acknowledging price disparities and launching a formal review process, the government signals its commitment to more transparent, equitable drug pricing. The focus on local manufacturing, tighter regulation and enforcement reflects a broader push for healthcare affordability and self-reliance in a rapidly changing world.