GCC

COUNTRY
REPORT

UNITED ARAB
EMIRATES
Market Snapshot
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DEMOGRAPHICS

Female
Population Gender Male
31%
9,516,871¹ Distribution² 69%

Population Growth Rate

0.8%¹
Local
11%

Life Expectancy Local to Expat

79 years³ Distribution⁴ Expat
89%

United Arab Emirates - GCC Country Report www.pharmabp.com

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ECONOMIC DATA

GDP per Capita

USD 49,452 (2023)⁵
Male
58%

Percentage of GDP Invested into Healthcare

4% (2022)⁶

Percentage of GDP Invested into Pharmaceuticals

1% (2020)⁶

United Arab Emirates - GCC Country Report www.pharmabp.com

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OVERVIEW OF
THE HEALTHCARE
SYSTEM

With an expatriate population of 89% and a local population of 11%, the United Arab Emirates
(UAE) features a robust healthcare system financed by both the national government and
private insurance companies. The national healthcare system of the UAE is split into a public
sector (30% of spend) that caters to UAE nationals and government employees, and a private
sector (70% of spend) that caters to both UAE nationals and expats.
Healthcare services in the UAE are provided free of charge to UAE nationals, with services
being governed by 4 main regulatory entities:
Abu Dhabi: Abu Dhabi Department of Health (DoH)
Dubai: Dubai Health Authority (DHA)
Sharjah: Sharjah Health Authority (SHA)
Other Emirates (Ajman, Fujairah, Ras al Khaimah, and Umm al Quwain): Ministry of Health
and Prevention (MoHAP)

Private healthcare is provided to all expats and UAE nationals working in the private sector,
through mandatory private healthcare insurance, which typically provides coverage based on
the type of insurance plan, and may involve co-pays of up to 20% for prescription drugs.

Between 2016 and 2022, healthcare spending per capita increased by 4% annually, reaching
USD 215 billion in 2022, and it is projected to grow at a compound annual growth rate (CAGR)
of 7% from 2022 and 2027. In addition to this, healthcare expenditure in the UAE is forecasted
to reach USD 30.7 billion between 2023 and 2027. Private sector spending is forecasted to
increase at a CAGR of 9.5%, whereas public sector spending is expected to increase by a
CAGR of 4.4%. In 2022, 4.95 billion AED (approximately USD 1.35 billion) was spent on public
sector healthcare in the UAE. This growth offers opportunities for international investment and
public-private partnerships in healthcare in the UAE and new ventures such as developing
additional healthcare facilities and digital health services.⁷

United Arab Emirates - GCC Country Report www.pharmabp.com

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UAE Healthcare
System

Private
Public (30%)
(70%)

Ministry of Health and

Prevention (MoHAP)

Abu Dhabi
Dubai Health Sharjah Health
Department of Health
Authority (DHA) Authority (SHA)
(DoH)

Figure 1 An overview of the structure of the UAE healthcare system

United Arab Emirates - GCC Country Report www.pharmabp.com

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REGULATORY
PROCESS

Centralized Route:
The Gulf Central Committee for Drug Registration, as part of the Gulf Health Council, regulates
the market authorization and price-setting decisions regionally for the Gulf Cooperation
Council (GCC) and Yemen. This system ensures that drugs meet stringent standards for
quality, effectiveness, and safety, and verifies the accuracy of the submissions.
At the national level, MoHAP is responsible for governing the healthcare system in the UAE,
managing product registration, and establishing pricing and policy guidelines. They are also
responsible for drafting laws on the import, manufacture, registration, and distribution of
medicines. While formulating pricing decisions, MoHAP takes into account the opinions of the
DoH and DHA.

Standard route
The standard route to achieving marketing authorization in the UAE takes approximately one
year to complete.
The steps include:
Documentation review by the drug registration and pricing committee.
Price calculation.
Price re-calculation (if required).

The documentation required to apply for registration and pricing includes company and
product details, proposed CIF price in USD, ex-factory, wholesale, and retail prices in the
country of origin, and the GCC price certificate.

United Arab Emirates - GCC Country Report www.pharmabp.com

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Fast-track registration
The UAE implements a 30-day fast-track market authorization scheme for drug registration.
The fast-track registration process is also applicable for innovative and orphan drugs,
regardless of whether they have received US Food and Drug Administration or European
Medicines Agency approval, as long as they have received a positive opinion from an
authorized, accredited international regulatory body.
The UAE fast-track process states that MoHAP will evaluate the application of an innovative or
orphan drug within 15 working days of submission. The application will be approved or
rejected within 10 working days from the date of evaluation of the registration file. Once
approval is granted by the committee, the pricing will be determined and a certificate of
registration and pricing of the drug will be issued.⁸

United Arab Emirates - GCC Country Report www.pharmabp.com

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PRICING

MoHAP initially sets new therapy prices on a national level, taking into account the opinions of
the DHA and DoH. The prices are reviewed every five years.

International reference pricing is widely leveraged to maintain equity during the pricing
process for a variety of pharmaceutical products, with references based on the median price
from the country of origin plus 18 international markets (Asia: Bahrain, Kuwait, Saudi Arabia;
Europe: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands,
Norway, Spain, Sweden, Switzerland and the United Kingdom; North America: Canada),
prioritizing those with comparable GDPs and health systems, or the median price in the GCC
(excluding Qatar), whichever is lowest.

Value-based pricing takes precedence when establishing the pricing and reimbursement
structures for new products, particularly when seeking a premium over existing therapies. In
cases where a new product is being registered, the product is compared to the lowest-priced
competitor that is already available on the market.

United Arab Emirates - GCC Country Report www.pharmabp.com

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FORMULARY
INCLUSION

Access is typically governed by formulary inclusion. There are two sector-dependent formulary
types in the UAE.

Institutional formularies:
The Pharmacy and Therapeutics (P&T) committee in each major institution is responsible for
the provision of local access through inclusion in their institutional formularies. Formulary
inclusion is typically provided based on key opinion leader preferences and the general
preference to provide a breadth of options for physicians.

Private hospital formularies:

Each private hospital or hospital chain has its own P&T committee with separate formularies.
The rules for accessing medications focus on making sure the products can be bought at
prices that allow for profit, whether purchased directly or covered by insurance. The
reimbursement for particular drugs depends on coverage in individual patient plans, and
access is managed at the hospital level.

Managed entry agreements

The emirate of Abu Dhabi has a defined managed entry agreement (MEA) policy; however,
policies are likely to be similarly developed in Dubai and in other emirates. These are
designed to address the challenge of rising healthcare expenditures and manage the financial
risk associated with the adoption of new technologies, particularly pharmaceuticals, in the
absence of complete evidence of clinical benefit. The selection of new pharmaceutical
products considers factors like high cost or unmet needs, emphasizing affordability, disease
severity, and potential patient benefits. Pharmaceutical companies are eligible to submit MEA
proposals to the DoH, following a structured five-phase development process including,
internal assessment and information collection, proposal setup, stakeholder feedback,
finalization of the proposal, and agreement sign-off and implementation.

United Arab Emirates - GCC Country Report www.pharmabp.com

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The different types of MEAs:

Financial-based structures addressing risks associated with assumptions about
real-world utilization or volume for a given technology/pharmaceutical product
Population-level financial-based risk-sharing agreements may involve budget caps
or price-volume agreements
Patient-level agreements covering medications with highly variable dosing may
include utilization caps or partial manufacturer funding for mutual risk-sharing
Performance-based to manage uncertainty about the actual clinical benefit of a medical
technology/pharmaceutical
Outcome-based agreements involving conditional coverage, linking reimbursement
to clinical outcomes in real-world settings.⁹

United Arab Emirates - GCC Country Report www.pharmabp.com

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NAMED PATIENT
&COMPASIONATE
USE PROGRAMS

The UAE allows the import and use of unregistered medicines through named patient and
compassionate use procedures, with MoHAP overseeing the approval process.

This approval is granted under various circumstances, including:

Emergencies for life extension,

Unavailability of heart or cancer treatments locally,
Reinstatement of previously withdrawn medications due to market demand,
Specialized hospitals using unregistered narcotic or psychotropic drugs, and
Typically, high unmet needs or pediatric conditions.

To obtain approval, documents such as a confirmation letter from the hospital, certification of
registration in the originating country, a registration certificate issued by the manufacturer, and
a treatment protocol. These documents outline the responsible administration of unregistered
medicines and ensure adherence to safety protocols.¹⁰

United Arab Emirates - GCC Country Report www.pharmabp.com

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PROCUREMENT

The procurement process in the UAE varies between the emirates and public or private
hospitals. In the Northern Emirates, hospitals will participate in the MoHAP tendering process,
while hospitals in Dubai will procure through the DHA tender, and hospitals in Abu Dhabi go
through the RAFED tender. The terms and conditions of the tender and the frequency of
supply (monthly, quarterly, or yearly) are agreed upon by the procurement committee and the
supplier. The discount levels in each tender vary based on the volume of purchase. For private
hospitals, a direct purchasing mechanism is employed.

United Arab Emirates - GCC Country Report www.pharmabp.com

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FUTURE TRENDS
AND OUTLOOK

The UAE has a multidimensional approach to the future and development of the healthcare
sector in the region. Five key initiatives are driving continued growth.

The Emirates Drug Establishment

The UAE cabinet recently approved the formation of the Emirates Drug Establishment (EDE),
responsible for managing and regulating the production and distribution of pharmaceutical
products, medical devices, and technology, animal and agricultural goods, and stem cell or
blood matter products. The EDE was established to facilitate public-private partnerships with
international stakeholders and thereby:

Increase international investment in the healthcare sector in the region,

Stimulate a research and development ecosystem in the UAE,
Enhance drug safety through the implementation of a protective model that incorporates
all private and public stakeholders, and
Adopt international best practices and standards for regulations and maintain an agile and
evolving regulatory environment.

The establishment of the EDE will result in reallocating the regulatory responsibilities of
MoHAP and some elements of the Ministry of Climate Change and Environment.¹¹

United Arab Emirates - GCC Country Report www.pharmabp.com

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The EJADAH Program

The EJADAH program was introduced in June 2022 in Dubai as the region's first value-based
healthcare model by the DHA. The aims of the program are to:
Improve health services and enhance preventative care, aiming to improve health in the
population and reduce healthcare expenditure.
Support the Implementation of a pay-for-performance model focused on outcomes
significant to patients.
Provide healthcare service providers with evidence-based guidelines, serving as a
framework for all physicians to follow regarding treatment protocols.
Grant insurance providers access to evidence-based data, thereby reducing unnecessary
medical expenditures.¹²

Further Investment in Medical Tourism in the Region

Medical tourism has become a significant driver in UAE healthcare growth. In 2021, Abu Dhabi
and Dubai were both nominated as being one of the top 10 medical tourism destinations
worldwide.⁷ The medical tourism industry has proven to be a lucrative form of economic
growth throughout the MEA region, indirectly impacting other industries such as tourism and
hospitality also, overall increasing the country's GDP.¹³

2030 Industrial Strategy

The UAE has been implementing strategies to encourage local pharmaceutical manufacturing
sector development. Dubai expects to attract USD 2.5 billion in investments in the
pharmaceutical industry in the next five years as it accelerates its efforts to attract international
corporations to establish manufacturing bases in the country.⁷

Public-Private Collaborations for Smart Healthcare

By encouraging public-private partnerships and collaboration, the UAE can partner with global
health technology companies and implement the latest technologies such as artificial
intelligence and machine learning in integrated healthcare delivery. This will be an added
benefit to the already implemented technologies and systems in telemedicine and digital
health that are currently being established and utilized in the UAE.⁷

These five key trends, amongst various other initiatives being undertaken within the country
are propelling the UAE forwards. With the implementation of a value-based healthcare system
and efforts to improve efficiencies nationally, the country is poised to continue to lead the GCC
forwards and will continue to remain an innovator and leader in access to care.

United Arab Emirates - GCC Country Report www.pharmabp.com

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ABBREVIATIONS

CAGR Compound Annual Growth Rate

CIF Cost, Insurance and Freight
DHA Dubai Health Authority
DoH Department of Health
EDE Emirates Drug Establishment
GCC Gulf Cooperation Council
GDP Gross Domestic Product
MEA Managed Entry Agreement
MoHAP Ministry of Health and Prevention
P&T Pharmacy and Therapeutics
SHA Sharjah Health Authority
UAE United Arab Emirates
USD United States Dollar

United Arab Emirates - GCC Country Report www.pharmabp.com

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REFERENCES

1.“United Arab Emirates Population 1950-2022." Macrotrends,

www.macrotrends.net/countries/ARE/uae/population.
2.“UAE Population Statistics." Global Media Insight, www.globalmediainsight.com/blog/uae-
population-
statistics/#:~:text=In%202023%2C%20the%20legend%20split,only%2031.42%25%20of%20the
%20population.
3.“United Arab Emirates Life Expectancy 1950-2022." Macrotrends,
www.macrotrends.net/countries/ARE/uae/life-
expectancy#:~:text=The%20current%20life%20expectancy%20for,a%200.18%25%20increase
%20from%202020.
4.“Expat residents constitute approximately 88.52% of the population by 2023, outnumbering
Emirati families by 2033." Global Media Insight, www.globalmediainsight.com/blog/uae-
population-
statistics/#:~:text=Expat%20residents%20constitute%20approximately%2088.52,of%20Emirati
%20families%20by%202033.
5.“Per Capita GDP." Investopedia, www.investopedia.com/terms/p/per-capita-gdp.asp#toc-
countries-with-the-highest-gdp-per-capita.
6.“UAE Healthcare and Pharmaceutical Economic and Innovation Capacity." US-UAE Business
Council, usuaebusiness.org/wp-content/uploads/2017/01/UAE-Healthcare-and-pharmacuetical-
economic-and-innovation-capacity.pdf.
7.“The UAE Healthcare System" Dubai Science Park Whitepaper, https://dsp.ae/whitepaper-
report.
8.“UAE Implements New Fast-Tracked Registration for Innovative and/or Orphan Drugs."
Mondaq, www.mondaq.com/saudiarabia/food-and-drugs-law/695216/uae-implements-new-
fast-tracked-registration-for-innovative-and-orphan-drugs.
9.“Abu Dhabi Department of Health. "Policy of establishing managed entry agreements/risk
sharing agreements in the emirate of Abu Dhabi.
10.“In review: the life sciences regulatory regime in United Arab Emirates.” Lexology,
https://www.lexology.com/library/detail.aspx?g=eb1ec900-7799-41b2-a9cc-8d9a4dcac800.

United Arab Emirates - GCC Country Report www.pharmabp.com

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REFERENCES

11.“Dr. Fatima Al Kaabi Briefs Industry on New Emirates Drug Establishment." US-UAE Business
Council, usuaebusiness.org/events/dr-fatima-al-kaabi-briefs-industry-on-new-emirates-drug-
establishment/.
12.“DHA Announces New Medicine Regulations." Dubai Health Authority,
www.dha.gov.ae/en/media/news/765.
13.“Medical Tourism: The Role of the UAE in the GCC Region." World Travel & Tourism Council,
wttc.org/Portals/0/Documents/Reports/2019/Medical%20Tourism-Nov%202019.pdf?ver=2021-
02-25-182803-880.
14.“Eltek, Steinar. "Genuine policy learning is fundamental: the journey of the United Arab
Emirates toward the establishment of health technology assessment." International Journal of
Technology Assessment in Health Care, www.cambridge.org/core/journals/international-
journal-of-technology-assessment-in-health-care/article/genuine-policy-learning-is-
fundamental-the-journey-of-the-united-arab-emirates-toward-the-establishment-of-health-
technology-assessment/B35070DDA4BBA92638E8BFF96953FA28.
15.“Futureproofing the UAE Healthcare Sector." MEED Mashreq Industry Insight,
www.meedmashreqindustryinsight.com/futureproofing-the-uae-healthcare-sector/.

United Arab Emirates - GCC Country Report www.pharmabp.com

 PAGE 18

CONTRIBUTORS

Acknowledgements

We acknowledge the efforts and contributions of the team members and thank Lavni Varyani
and Zoya Ali (Pharma BP) for their leadership. We would also like to thank Donya Vaziri
(Pharma BP) for her thoughtful analyses.

Pharma BP

Lavni Varyani
Founding Partner
LVaryani@pharmabp.com

Zoya Ali
Consultant
Zali@pharmabp.com

Donya Vaziri
Analyst
Dvaziri@pharmabp.com

United Arab Emirates - GCC Country Report www.pharmabp.com

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