Life Sciences Horizons Brochure 2025 - Flipbook - Page 37
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2025 Horizons Life Sciences and Health Care
Anti-corruption risks facing companies in the Middle East
The Middle East is seeing rapid growth in the
pharmaceutical and medical device market. This is
being driven by a number of factors, including regional
government investment in health care infrastructure
and technological innovations.
However, this growth brings with it a heightened risk of exposure
to corruption and bribery. Life sciences companies operating in
the Middle East must navigate a complex web of regulations,
including a variety of local laws and regulations dealing with
anti-bribery and corruption, in addition to international laws with
extra-judicial effect, such as the U.S. Foreign Corrupt Practices Act
(FCPA) and the UK Bribery Act. A failure to properly manage these
risks can result in substantial financial penalties, reputational
damage, and potential criminal liability.
Regional and local anti-corruption regulations
Regional enforcement trends
Regional governments have ramped up measures to clamp down
on bribery and corruption in recent years, including by ratifying
and acceding to the United Nations Convention Against
Corruption (UNCAC) and the Arab Anti-Corruption Convention.
In addition, governments in the region have implemented – and
continue to implement – their own set of anti-corruption and
bribery frameworks that are often modelled after international
standards such as the FCPA and UK Bribery Act, but tailored to
local contexts and industries.
As a result of countries like the UAE and Saudi Arabia bolstering
their legal frameworks to combat corruption, regulators in these
countries have begun to target both domestic and foreign
companies operating in the region, with penalties for noncompliance that can include hefty fines, contract suspensions,
and criminal prosecution.
Navigating this landscape can be complex. In addition to
considering national anti-bribery and corruption legislation,
which may not be consolidated into a single source, companies in
the region are often required to look at supplementary laws and
regulations that are specific to the sector or industry in which they
operate. For example, in the UAE, laws dealing with bribery and
corruption can be found in the UAE Penal Code (Federal Law No.
31 of 2021) and the Anti-Money Laundering Law (Federal DecreeLaw No. 20 of 2018). Both criminalize bribery, including bribing
government officials and private individuals. In addition, the
UAE’s Dubai Health Authority (DHA) and Ministry of Health and
Prevention (MOHAP) impose stringent regulations on the
interaction between pharmaceutical companies, health care
professionals (HCPs), and government entities (for example,
in the “Dubai Health Authority Code of Conduct for Health
care Professionals”).
Saudi Arabia has a similar legal structure, with its Anti-Bribery
Law (Royal Decree No. M/36 of 1992, as amended) targeting both
public and private sector corruption. The Saudi Food and Drug
Authority (SFDA) plays a central role in regulating pharma and
medical device companies, ensuring that companies comply with
both anti-bribery laws and sector-specific regulations (Saudi Food
and Drug Authority Law, Royal Decree No. M/6 of 2007).
Indeed, there have been several notable cases involving
pharmaceutical companies and health care centers in the region
in recent years, emphasizing the need for robust compliance
practices. For example, most recently in February 2024, the Abu
Dhabi Department of Health imposed a one million dirham fine
and referred several individuals for criminal investigation on
suspicion of misappropriating public funds.
Elsewhere in the GCC, countries such as Qatar, Kuwait, and Oman
have introduced anti-corruption laws that are increasingly being
enforced with greater frequency, often in response to
international calls for higher standards of corporate governance
(see, e.g., Qatar Law No. 11 of 2004 on the Penal Code and Kuwait
Penal Code No. 16 of 1960).
