UAE: Health Insurance to be Mandatory Across Remaining Emirates from 1 January 2025

In this iPMI Global regional country guides article, iPMI report author and market analyst Ian Youngman, takes a look at the UAE, and news that health insurance will be mandatory across the remaining states from January 2025.

• Health insurance will be mandatory across the remaining five UAE emirates from 1 January 2025.
• This means implementing the system in Sharjah, Ajman, Umm Al Quwainah, Ras Al Khaimah and Al Fujayrah.
• The UAE is a constitutional federation of seven emirates. Abu Dhabi and Dubai already have compulsory health insurance with similarities but not identical rules.
• Following a meeting of UAE cabinet ministers in Abu Dhabi, a new health insurance policy was announced, which will come into force on January 1 2025 across the entire country.
• According to the new system, employers in the private sector are required to pay for health insurance cover for their registered workers upon issuance or renewal of their residency permits.
• This also applies to employers of domestic workers in the UAE.
• The move will bring the other five emirates in line with Abu Dhabi and Dubai, which both currently have policies in place where health insurance is mandatory for all workers.
• The health insurance laws in Abu Dhabi and Dubai both require a minimum standard of health insurance provided by employers to their employees.
• In both, insurers can compete on price but must at least offer the agreed minimum level of cover.
• The five states will require employers to provide insurance from a selection of health insurers with a minimum as yet to be agreed level of cover.
• Whether this will affect the Abu Dhabi and UAE systems is not yet known.
• According to the new system, employers in private sector companies along with employers of domestic workers in the UAE will be required to pay for the health insurance cover for their registered workers upon issuance or renewal of their residency permits.
• The mandatory system will come into effect starting January 1, 2025, with the UAE’s Ministry of Human Resources and Emiratisation appointed as the responsible body for carrying out essential awareness campaigns and programmes regarding the scheme.
• Employers will have to pay for staff and domestic workers with no contribution from the employee.
• It is not immediately clear if the law will obligate companies to pay for schemes for their employees’ family members.
• According to a statement released by the UAE Cabinet, employers will need to get a healthcare package for their workers while issuing or renewing their residency permits. This means providing a plan to an employee or domestic worker could be linked to visa issuance or renewal, as is the case in Abu Dhabi and Dubai. In both emirates, visas are not issued or renewed unless the applicant has valid health cover.
• The UAE has not yet spelt out what the mandatory insurance would cover for beneficiaries.
• This new scheme will result in an increased cost of operations for many employers with health insurance the second largest cost after salary.
• Some employers already provide health insurance.
• There are many local and global health insurers who will offer cover when details are known.
• Increasing healthcare costs will counter any possibility of a price war.
• Compulsory health insurance is increasingly common in the Middle East.
• According to the Ministry of Health there will be three tiers to the new system:
• The basic package will cost around Dh750 [$204) per year.
• The second package costs Dh3,500.
• The advanced package starts from Dh7,500.
• Each package will have different benefits, and all provide extensive health cover.
• The total UAE population is 9.59 million of which around 9 million are foreigners.

Population by state:

• Abu Dhabi 1.59 million
• Dubai 3.65 million
• Sharjah 1.87 million
• Ajman 418,000
• Ras Al Khaimah 345.000
• Al Fujayrah 152,000
• Umm Al Quwainah 45,000
• The numbers for the smaller states do vary by source.

About the Author

Ian Youngman is an independent writer and researcher specialising in insurance. He writes regularly for a variety of magazines, newsletters, and on-line services. He publishes a range of market reports, and undertakes research for companies. To read his latest report, International Health Insurance 2023, please click here, or visit the REPORTS section of iPMI Global.