UAE insurance: Up to 60% healthcare costs covered privately

Obtaining health insurance is crucial in the UAE.

Currently, around 60 per cent of healthcare costs are covered by private insurance, with the remaining 40 per cent funded by the government.

“Without private insurance, the government would bear the financial burden of healthcare costs. With the UAE’s growing population and economy, it is essential to have private insurance to share the financial risk,” said Andrea Tithecott, Partner and Head of Regulatory Practice at Al Tamimi & Company.

Tithecott also emphasised that healthcare-related regulations in the UAE are designed to be efficient and foster innovation. However, she noted that these rules are neither better nor worse than those in other countries—they’re simply different, aligning with the region’s goals for rapid growth and modernization.

The regulations are expanding insurance coverage beyond Abu Dhabi and Dubai to the northern Emirates, which will extend coverage to an additional 3 million people by 2030. Insurance is critical for ensuring the sustainability of healthcare in the UAE, she added.

Read: UAE launches basic health insurance for private sector workers, domestic staff

In December 2024, the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) announced the launch of a basic health insurance plan for private sector employees and domestic workers. The plan was designed for staff members not already covered by insurance and will extend nationwide starting January 1, 2025.

The UAE government also issued a Federal Decree-Law in December 2024 to regulate medical products, pharmaceutical entities, and the profession of pharmacists. The law applies to all medicines, cosmetics, dietary supplements, healthcare products, medical devices, and genetically modified organisms intended for medical use.

Important: Senior citizens in the UAE get new health insurance plan

Additionally, the law covers controlled and semi-controlled substances, as well as hazardous or toxic materials for human and veterinary use.

Not only does the UAE have laws and regulations regarding medicines and medical products, but it also oversees the use of technology in the healthcare sector.

In 2018, the Department of Health in Abu Dhabi became the first entity in the region to implement a policy for the use of AI (artificial intelligence) in healthcare.

Mohamed Hamad Al Hameli, Acting Undersecretary of the Department of Health Abu Dhabi, stated that applied AI has substantial potential for the healthcare sector. It plays a significant role in improving safety, access, and delivery of healthcare services, while also enhancing evidence-based care, as well as population and patient research.