United Arab Emirates: Forthcoming Requirement for Companies in Private Sector to Provide Health Insurance for Employees

Effective January 1, 2025, the UAE government will require all employers in the private sector to provide health insurance for their employees, which is already required in the emirates of Abu Dhabi and Dubai. Employers will be required to cover the cost of health insurance for their employees, including for domestic workers; proof of such coverage will be required for their employees when obtaining or renewing residence permits, mirroring the current practice in Abu Dhabi and Dubai. However, it is currently unclear if employers will be required to cover health insurance costs for their employees' dependents. Further details of the health insurance coverage have yet to be announced, including penalties for non-compliance and the specifications of required coverage. Employers may need to revise their expenditures in order to account for the additional healthcare costs; however, despite the increased cost, offering comprehensive health insurance is widely seen as a benefit by many employees and has the potential to help attract and retain talent.