Health Insurance Becomes Mandatory Across UAE Effective January 1, 2025

Multiple news reports have cited that the HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai has in a UAE cabinet meeting earlier this week approved the establishment of a mandatory health insurance system that will make health insurance mandatory for the remainder Emirates of UAE.

Currently, health insurance is mandatory only in Dubai and Abu Dhabi, and is regulated by Dubai Health Authority (“DHA”) in Dubai and Department of Health, Abu Dhabi (“DoH”) respectively. However, the new decision would require the employers in other emirates namely Sharjah, Ras Al Khaimah, Umm Al Quwain, Ajman, Fujairah to necessarily obtain health insurance cover for their employees.

While the other details will reveal itself in due course, reports suggest that the decision becomes effective from January 1st, 2025 and the UAE Cabinet has authorised the Ministry of Human Resources and Emiratisation (“MOHRE“) to spearhead awareness initiatives ensuring understanding and adherence to these new obligations. In Dubai the implementation of mandatory health insurance was done in stages, based on size of the organization, and we will have to wait and see whether the remainder Emirates take the same approach.

Apart from taking one step closer to universal health coverage, this development will bring in fresh lease of life to the health insurance sector by allowing new areas to expand into and help with the overall growth of the sector and the economy. The healthcare infrastructure in Dubai and Abu Dhabi are great examples of what kind of change to the sector such mandatory health could bring in.

While the details are awaited, this may be an opportune time for those in the UAE market and looking to expand into Northern Emirates to start exploring their licensing, set-up and also the distribution structure. For overseas players, including reinsurers who are heavily invested in this market, this is a good time to start engaging with their local partners and explore their future offerings in these Emirates.

How can we help?

At Al Tamimi & Company, our extensive experience and deep understanding of regulatory frameworks uniquely position us to offer expert advice and assistance on navigating the evolving regulatory regime. Additionally, our dedicated team is ready to provide on-the-ground support.