Life Sciences Horizons Brochure 2025 - Flipbook - Page 38
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2025 Horizons Life Sciences and Health Care
Anti-corruption risks facing companies in the Middle East (continued)
Whistleblowing
In many jurisdictions, whistleblowing is an invaluable tool for
enforcement authorities in detecting and taking action against
corrupt practices. Historically, this has been less commonly relied
upon in the Middle East, in part due to a lack of appropriate
whistleblowing protections. However, that is also beginning
to change, although there remains work to do.
Recent legislative amendments in the UAE have been designed
to encourage whistleblowing with a view to detecting and
eliminating bribery and corruption. A recent change to the
UAE’s Penal Code has made it an offense for an individual to fail
to report a criminal act, such as an instance of bribery, thereby
mandatorily encouraging the practice of whistleblowing.
Similarly, in July 2024, the Abu Dhabi Global Market introduced
the Whistleblower Protection Regulations, which require
companies to implement measures that protect individuals
making disclosures – for example, by concealing their identity.
In Saudi Arabia, the national anti-corruption authority, Nazaha,
offers whistleblowers a financial incentive for disclosures in
certain circumstances, in addition to full protection and
anonymity. This compensation ranges from a minimum of
SAR 1,000 (c. USD 260) to a maximum of SAR 1,000,000 (USD
260,000). As a result, uptake is significant but can result in the
making of spurious reports.
Impact on pharmaceuticals and medical
device companies
Pharmaceutical and medical device companies operating in the
region must carefully manage relationships with HCPs, hospital
administrators, and regulatory bodies, making it essential to
ensure compliance with both local and international anticorruption laws.
These challenges are particularly pronounced in emerging
markets within the region, where corruption risks are often higher
due to the interplay between local customs, regulatory practices,
and global business pressures. Pharmaceutical companies must
be especially cautious when working with intermediaries who
may engage in corrupt practices to facilitate market access or
expedite regulatory approvals.
As the Middle East continues to grow as a key market for
pharmaceutical and medical device companies, navigating the
region’s anti-corruption laws is becoming increasingly critical.
Companies must be vigilant in monitoring the evolving legal
landscape and implement comprehensive compliance programs
to mitigate the risks of corruption. By doing so, they can protect
their reputation, avoid hefty fines, and ensure sustainable, ethical
business practices in this dynamic region.
Randall Walker
Partner
Dubai, Riyadh
Jessica Quinlan
Associate
Dubai
