Health Insurance Mandated Across UAE Effective January 1, 2025

Health Insurance Mandated Across UAE Effective January 1, 2025

In a recent development, it has been reported that HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, during a UAE cabinet meeting, has approved the implementation of a mandatory health insurance system across all Emirates of the UAE. This decision extends the current mandatory health insurance requirement, which is presently applicable only in Dubai and Abu Dhabi, regulated by the Dubai Health Authority (DHA) and the Department of Health, Abu Dhabi (DoH), respectively.  Effective January 1st, 2025, this decision mandates that employers in the Emirates of Sharjah, Ras Al Khaimah, Umm Al Quwain, Ajman, and Fujairah must provide health insurance coverage for their employees. The Ministry of Human Resources and Emiratisation (MOHRE) has been authorized by the UAE Cabinet to lead awareness initiatives aimed at ensuring understanding and compliance with these new obligations.

Similar to the phased implementation witnessed in Dubai, it remains to be seen if the other Emirates will adopt a similar approach based on organizational size. This move is anticipated to advance towards achieving universal health coverage and is expected to invigorate the health insurance sector, fostering overall economic growth. The healthcare infrastructure in Dubai and Abu Dhabi serves as promising examples of the transformative impact such mandatory health insurance measures can have on the sector. While awaiting further details, stakeholders in the UAE market and those considering expansion into the Northern Emirates are encouraged to explore licensing, setup requirements, and distribution structures. For international players, including reinsurers with significant investments in this market, now presents an opportune time to engage with local partners and strategize future offerings tailored to these Emirates.