Because of the substantial and underlying need for medical treatments, pharmaceutical and healthcare expenditures in Iraq will continue to increase. International corporations from all around the world are eager to invest in Iraq. As a result, it demonstrates that investors are prepared to go past the perception of Iraq as a dangerous place to conduct business. This prompted an increasing number of multinational corporations to enter the industry. Experts predict substantial development in the future years because the industry is still new and underserved. Furthermore, growing consumer awareness of the value of high-quality branded items has resulted in an increase in demand for foreign products. In order to fully understand the Pharmaceutical market in Iraq, we need to look at the details of operations. Also, the regulatory structure and how human resources functions in the pharmaceutical market.
Iraq Pharmaceutical Regulatory structure
Iraq’s private and public sectors are regulated and overseen by the Ministry of Health (MOH). It is also responsible for the availability and safety of medications on the market. All pharmaceutical items are approved by the national board of medication selection, which is overseen by the Ministry of Health. To authorize advertising their products in the country, pharmaceutical businesses must be registered. Once registered with the MOH’s department of pharmacy, the corporation must file each product for registration, QC testing, and licensing.
If the international corporation does not want to establish a legal entity in Iraq. As a result, it can continue to function by partnering with a local partner who will act on the company’s behalf; In the tendering process, importation, product registration, and distribution. And, agrees to follow all worldwide drug manufacturer codes and policies on one hand, as well as the local laws enforced by MOH, customs, the ministry of labor, and the tax department on the other.
Key International Companies working in Iraq
AstraZeneca, MSD, Servier, Pfizer, Jansen, Roche, novonordisk and Byer. Those worldwide organizations are eager to follow the Foreign Corrupt Practices Act and European anti-money laundering and corruption rules. As a result, they collaborate with trustworthy local partners to operate activities such as tender management, money transfers, and human resource management legally and in accordance with these statutes and instructions.
Human Resources In Iraq
According to our pharmaceutical market specialists, companies who collaborate with local partners have been able to capitalize on more and better chances to expand in the market in an effective and compliant manner. International companies, based on their previous experience in the Iraqi market, tend to place their employees on the field through local partners. This method, in our expertise, is significantly more efficient than corporations that conduct their activities in Iraq remotely. To have individuals working legally in the country for an overseas corporation, they must be contracted through the distributor legal entity or through the services of an employment solutions company.
Having the company’s staff on the distributor’s payroll would simplify its operations, but it would have significant drawbacks. :
For Example
- It will limit the ability of the company’s employees to monitor and report any misconduct committed by the distributor, as well as impair their judgment.
- Will give more control for the distributor over the mother’s company business and operations.
- It will exert a financial burden on the distributor.
- It will exert a burden on the distributor finance and HR staff.
- Local distributors frequently violate the country’s labor laws by failing to provide legal contracts to the company’s employees and failing to make social security or personal income tax payments. As a result, the mother firm and its representative may face fines or legal action.
Using professional HR solutions providers, such as Shull Employment Solutions, to manage company workers in the country, on the other hand, will allow foreign corporations to avoid these challenges.
Using Shull Employment and Human Resources management services will:
- Enable the company to operate efficiently and in accordance with international and local legislation without the requirement of a formal entity in Iraq or reliance on distributor operations.
- The company can assure a solid and long-term connection with its employees by delivering wages, benefits, and compensations on time and in accordance with labor law in Iraq.
- Lower employee turnover rates.
- Ensures a steady stream of talented individuals for all of the company’s openings, who are chosen based on their talents and qualifications rather than referrals and without the distributor’s participation.
- Provide dependable legal and technical HR management consultations to the company, as well as conduct any HR department-required surveys and studies in the country.
Trusted HR Solutions In Iraq
Shull Employment Solutions offers a world-class employer of records and professional employer organization services to help international pharma companies and organizations expand into Iraq and the Kurdistan region; in compliance with local laws and regulations. Our clients enjoy our expertise, guidance, resources, and solutions needed to establish their businesses and grow faster. Yet, with significant savings in administration costs, time, and resources.
If you have any more questions about the Pharmaceutical market, how to establish your business, or how to manage your human resources in Iraq, please contact us by email or give us a call and our experts will be happy to assist you. We are providing our HR smart solutions to international and local pharmaceutical companies across Iraq.
