New Health Insurance Policy Mandated for Northern Emirates Employers by 2025

Starting January 1, 2025, employers in the Northern Emirates will be required to purchase new health insurance policies as a prerequisite for issuing or renewing residency permits, the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) announced on Monday.

The mandate applies to employers in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah. However, employees with valid work permits issued before January 1, 2024, are exempt until their residency permits come up for renewal.

Khalil Al Khoori, Undersecretary of Labour Market and Emiratisation Operations at MoHRE, described the policy as a milestone in advancing the UAE’s labour market. “This initiative is part of a broader vision to expand the integrated social protection umbrella, including the Worker Protection Programme, the Unemployment Insurance Scheme, and the ‘Savings Scheme’ for end-of-service benefits,” he stated. Al Khoori highlighted the ministry’s commitment to fostering a secure work environment and improving the quality of life for all workers.

The new basic health insurance plan starts at just AED 320 annually, making it significantly more affordable than similar policies in Abu Dhabi and Dubai. According to Al Khoori, the policy will reduce financial burdens associated with medical treatment and unpaid sick leave, benefiting both workers and employers.

Major General Saeed Salem Balhas Al Shamsi, Acting Director-General of Identity and Foreigners Affairs at the Federal Authority for Identity, Citizenship, Customs, and Port Security, emphasized the initiative’s alignment with national goals. “This step reflects the UAE’s vision to enhance community quality of life, uphold human rights, and ensure universal healthcare access,” he said. Al Shamsi also highlighted the authority’s role in verifying insurance coverage for workers in the private and domestic sectors before issuing residency permits, ensuring healthcare is provided as a basic right.

Dr. Mohammed Salim Al Olama, Undersecretary at the Ministry of Health and Prevention, underscored the policy’s broader health benefits, including enhanced early disease detection, improved preparedness for health emergencies, and stronger prevention of chronic illnesses. “The new scheme will expand healthcare services to all groups, creating a stable and advanced health ecosystem,” he added.

The policy forms part of the UAE’s comprehensive effort to bolster its labour market’s competitiveness and global standing. It aims to improve key performance indicators related to quality of life, social protections, and healthcare security. Strategic partnerships with government entities, private institutions, and the insurance sector will ensure seamless implementation, boosting productivity and supporting the nation’s sustainable development goals.