UAE Health Insurance Rules: Who Provides Coverage and What Residents Should Know

Dubai, UAE: In the UAE, employers are legally obligated to provide health insurance to their employees, a duty that has become more expansive in recent years as rules are being tightened and extended to ensure that virtually all workers have access to basic medical coverage. The responsibility varies slightly from emirate to emirate, with differences in how dependents are handled, what the minimum requirements are, and how policies are enforced. But the overall picture is clear: health insurance in the UAE is no longer optional for many employees and domestic workers.

What’s the Law Across Emirates

• Abu Dhabi: Employers must provide health insurance for their employees and, in many cases, for their families — typically one spouse and up to three children under age 18. Lower-income workers may receive a “basic product policy” if their salary falls below certain thresholds.
• Dubai: Under Dubai’s Health Insurance Law, every sponsor (employer or visa sponsor) must provide an “Essential Benefits Plan” (EBP) for employees. Employers must cover the full cost of the policy — no deductions from salary. Dependents (spouses, children, etc.) may need separate coverage under sponsorship rules.
• Northern Emirates (Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, Fujairah): As of January 1, 2025, basic health insurance became mandatory for all private sector employees and domestic workers in these emirates. Employers must secure the cover before applying for or renewing residency permits.

Who Pays and What’s Covered

Employers bear the cost of insurance premiums. They cannot shift that cost onto employees. The law also requires that insurance remains valid throughout employment, including in cases where a worker’s visa is renewed.

Benefits differ by policy level, but there are some general minimum standards:

• Basic or essential coverage typically includes hospitalisation, emergency care, and certain outpatient services.
• Co-payment (portion the insured pays) rules apply in some policies: for example, a cap per visit or per year, or specified percentages for inpatient versus outpatient treatment.
• Dependents may be included under some employer-provided policies, depending on the emirate and employer; in some cases, only the employee is guaranteed, and dependents must be covered either via the employer or via separate sponsor-insurance.

Recent Nationwide Policy Changes

A key recent development came into force in 2025: a unified health insurance scheme mandated that all private sector employees, including domestic workers, must be covered in all emirates. Where previously only Abu Dhabi and Dubai had fully mandatory schemes, now the northern emirates also fall under the same requirement.

Another important detail is that employers must have valid health insurance in place before issuing or renewing residencies for employees. This ties insurance compliance directly to immigration/residency regulation, giving authorities a tool to enforce rules.

What About Dependents and Sponsors

For many expatriate workers, a big question is whether the health insurance provided by the employer must include their family.

• In Abu Dhabi, employer-provided insurance often includes the spouse and up to three children under 18 automatically.
• In Dubai, employers are required to cover the employee; coverage of dependents depends on the visa sponsorship and employer policy. The law requires sponsors to arrange insurance for dependents when not covered by the employer.
• In northern emirates, although basic insurance is now mandatory for workers and domestic staff, whether dependents are included depends on the terms of the policy and whether the worker is the sponsor.

The laws make clear that if dependents are not insured by the employer, then the sponsor (which might be the employee or another party) is responsible for ensuring those dependents are covered.

Enforcement and Penalties

To ensure compliance with health insurance obligations, several regulatory bodies are involved, including ministries responsible for health, human resources, and residence/immigration. Some emirates have developed compliance platforms that link visa issuance or renewal to health insurance validity — meaning an employer cannot legally renew an employee’s residency unless insurance is in place.

Fines or penalties may apply to employers who fail to provide mandatory insurance or who deduct premium costs from salaries. Noncompliance can also create problems when renewing work visas or residence permits.

Why These Rules Are Important

• Worker protection: Having at least basic medical coverage shields employees and their families from steep out-of-pocket medical costs, which can otherwise be exorbitant.
• Public health stability: More insured people means fewer delays in seeking care, which helps control disease spread and reduce emergency burden.
• Labour market fairness: Uniform insurance rules help level the playing field among employers; firms that had been avoiding coverage now must follow the same rules.
• Global competitiveness: As UAE positions itself as a global hub for work and business, ensuring basic worker welfare—including health coverage—is now essential for attracting high-quality talent.

What Employees Should Do

Employees and prospective workers should:

1. Check that their employer offers valid health insurance as required by law. Ask for policy details and coverage scope.
2. If you have dependents, ask if they are included or whether you need to ensure their coverage.
3. Verify that insurance is valid before visa/residence renewal.
4. Avoid accepting job offers that skip mandatory benefits.
5. Keep records of your insurance card and policy, and ensure you know which facilities or hospitals are in network.

Remaining Questions and Future Developments

Some areas still see variation, such as:

• Whether policies cover more than the basics: e.g., dental, specialist clinics, chronic diseases.
• Exactly how co-payment rules apply, and whether caps are sufficient in all emirates.
• Enforcement consistency across different emirates, especially in northern emirates where the mandate is newer.

Authorities have indicated they may update minimum policy guidelines or require more uniform standards as implementation continues.

Conclusion

In the UAE, legislation and policy clearly place responsibility for health insurance primarily on employers for their employees. Where employers do not extend coverage to dependents, sponsors must step in. Recent expansions of mandatory coverage to all private sector workers and domestic workers across all emirates strengthen these protections. For employees, verifying coverage and understanding policy terms is now an essential part of work life. The shift toward universal basic health insurance reflects the country’s commitment to worker welfare and healthcare access for all residents.