UAE Expands Mandatory Health Insurance Coverage: Latest Regulations for 2025

The United Arab Emirates (UAE) health insurance regulations have undergone a major update, making health insurance coverage mandatory for all private sector employees and domestic workers across all seven emirates. This new health insurance law in UAE ensures that every worker has access to affordable medical insurance, reinforcing the country’s commitment to comprehensive healthcare and quality medical services.

Mandatory Health Insurance in UAE: What’s Changing?

Effective January 1, 2025, UAE employers must provide health insurance for employees as a requirement for issuing or renewing residency visas. Previously, only Abu Dhabi and Dubai required employer-sponsored medical insurance, but this regulation now extends to Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah.

The rule applies to all employees, including domestic workers, and those with existing work permits must secure health coverage upon visa renewal.

Introduction of a Low-Cost Health Insurance Package

To assist businesses in complying with the UAE health insurance mandate, the Ministry of Human Resources and Emiratisation (MoHRE) has launched a low-cost basic health insurance plan under the DubaiCare Network.

Key Features of the UAE Basic Health Insurance Plan:

• Affordable Health Insurance Cost: AED 320 per year
• Validity: Two years (Refund available if visa is canceled in the second year)
• Health Insurance Coverage Includes:
• Inpatient Hospitalization: 20% co-payment (Capped at AED 500 per visit, annual limit AED 1,000)
• Outpatient Consultation: 25% co-payment (Max AED 100 per visit; no co-payment for follow-up within 7 days)
• Prescription Medication: 30% co-payment (Annual cap AED 1,500)
• Medical Network: 7 hospitals, 46 clinics, and 45 pharmacies

Regulatory Framework and Compliance

The Federal Decree-Law No. 48 of 2023, effective November 30, 2023, has also restructured UAE’s insurance industry, placing the Central Bank of the UAE (CBUAE) in charge of regulatory oversight. Employers must ensure compliance with these new health insurance regulations in UAE to avoid penalties and protect employees' well-being.

What This Means for Businesses and Employees

This expansion of mandatory health insurance in UAE provides better healthcare access, financial security, and improved workplace productivity. Employers should act immediately to secure medical insurance plans for employees and ensure policy compliance.

For expert assistance in buying health insurance in UAE, compare insurance plans, or find the best health insurance in UAE, visit Insurancehub.ae today!