New UAE insurance law: Will the Northern Emirates receive a wave of investments in specialized clinics and hospitals?

“There have also been cases where residents of a northern emirate sought treatment at a private health facility in Dubai,” said a senior industry source. “Because there is an impression that doing so could lead to a lower cost of treatment, or simply because there were no private sector options available in the other emirate.”

Starting January 1, 2025, all private sector employees in the UAE will be required to have insurance coverage provided by their employer. This requirement has already existed for some time in Abu Dhabi and Dubai, inside and outside their free zones. Therefore, all private sector entities in the other emirates will have to provide group health insurance starting next year. (UAE law also applies to domestic workers.)

What this would achieve is potentially another million residents in the northern emirates accessing universal health insurance coverage.

Many UAE insurers have been working on new health insurance plans to cover residents in the Northern Emirates.

– M. Rajendran of Burns & Wilcox MENA

Government organizations already provide this protection to personnel and many private companies also have these types of plans. But the January 1, 2025 deadline means there can be no more exemptions from now on.

“This step has been on the anvil for a long time and many UAE insurers have been working on new plans to cover residents of the northern emirates,” said M. Rajendran, Chairman and CEO of Burns & Wilcox MENA.

“This will be a relief for many who currently do not have health coverage. From an employers perspective, while it may increase their operating costs, in the long run it will help them have a stable and healthier workforce.”

The mention that insurers are working on creating new plans specific to the northern emirates is spot on. Other insurers also say that recreating the same prices and benefits available in Dubai and Abu Dhabi may not work. Apart from the basic plan, which ranges between Dh550 and Dh750 a year, the others will need a thorough review, they add.

This initiative promises to catalyze greater investments in healthcare infrastructure, thereby improving the system and raising public health standards across the Emirates. By ensuring universal access to essential healthcare services through comprehensive insurance coverage, the resulting increase in demand for healthcare facilities is expected to attract new capital investments.

For insurers, one thing is clear: from January 2025, they will have a much larger base for their health insurance portfolio.

This is also what healthcare operators are considering. A larger insured base will mean more people will go to healthcare providers for treatment consultations. And much more regularly, as has been the experience in Dubai and Abu Dhabi when universal coverage was introduced.

“This initiative promises to catalyze further investments in healthcare infrastructure,” said Dr Thumbay Moideen, Founding Chairman of Thumbay Group.

What the new law does is integrate healthcare into a broader economic diversification strategy as part of the UAE’s Vision 2030.

– Dr. Thumbay Moideen of Thumbay Group

When that happens, it results in a multiplication of new hospitals, specialized care centers and clinics in the northern emirates.

“The implementation of health insurance for all in the UAE marks a monumental shift towards improving the accessibility and quality of healthcare,” said Dr Jamil Ahmed, Founder and CEO of Prime Health.

“It is a catalyst for increased healthcare spending, especially in the northern Emirates, (and) promises to elevate the infrastructure and services of our healthcare system to new heights.”

The implementation of health insurance for all marks a monumental shift toward improving the accessibility and quality of health care.

– Dr. Jamil Ahmed from Prime Health

Any healthcare operator considering investing in one of the northern emirates must exceed these figures.

“With a population of 10.5 million in the UAE, approximately 9.5 million people have insurance, leaving around one million without coverage, mainly in the northern emirates,” said Dr. Raza Siddiqui, CEO of RAK Hospital and CEO of Arabian Healthcare Group. (The group is working on a new 200-bed hospital in Ras Al Khaimah.)

“In the absence of insurance, many companies did not provide the necessary health services. While some companies offered insurance, many did not, leaving a gap in access to adequate care.

In the absence of insurance, many companies failed to provide necessary healthcare services, leaving people to fend for themselves. . It is crucial to understand that by bringing in expats, regardless of their level of employment, we assume responsibility for their healthcare.

– Dr. Raza Siddiqui from RAK Hospital

“People often sought treatment from low-cost general practitioners but received inadequate care. There have been some incidents where people experiencing serious medical emergencies were only given basic painkillers, leading to consequences due to delay in proper medical intervention.

“It is crucial for us to understand that when we bring in expatriates, regardless of their level of employment, we assume responsibility for their healthcare. Unfortunately, until it became mandatory, this responsibility was not consistently met.

“While there may be initial challenges with supply and demand, the UAE government’s new decision presents a significant opportunity for investment in healthcare services in the northern emirates.”