Why it is mandatory and who pays for each policy
Dubai was the first emirate to make health insurance mandatory for all residents through the Dubai Health Authority (DHA). The employer is obliged to take out and pay for coverage for its workers, and the worker bears the cost for their spouse and children. Without a valid policy, a residence visa cannot be processed or renewed, so expired coverage also blocks renewal.
Since 1 January 2025, the remaining emirates (Sharjah, Ajman, Fujairah, Ras Al Khaimah and Umm Al Quwain) have joined the mandatory federal scheme for private-sector employees and domestic staff, with a basic package of 320 AED per year managed by MOHRE. Abu Dhabi had already required it since 2006.
The Essential Benefits Plan: the legal minimum
The EBP is the minimum level accepted by the DHA and exists so that no one in Dubai is left without coverage. It is aimed at those earning 4,000 AED per month or less and costs between about 600 and 1,000 AED per year (from about 535 AED depending on the insurer), with a claims cap of 150,000 AED per year.
It covers outpatient consultations and basic diagnostics, prescribed medication, emergencies, hospitalisation and basic maternity after a waiting period, within a network of contracted facilities. It serves to comply with the law, but the network is limited and co-payments are higher than in higher-tier plans.
Private plans: how much each level costs
A mid-range private individual plan costs between 3,000 and 4,000 AED per year; with a wide network of private hospitals, between 3,000 and 7,000; and international coverage with full maternity and evacuation, between 10,000 and 20,000 AED or more.
For dependants, budget accordingly: a couple with mid-range coverage costs between 3,000 and 7,000 AED per year, with one child between 6,000 and 14,000, and with two children between 9,000 and 21,000. Buying dependant coverage through the company's group plan is cheaper than individual policies.
What it covers and what it does not in practice
Hospitalisation and outpatient care are covered at all levels, with co-payments depending on the plan. Maternity is usually included with waiting periods in the basic plan and fully in higher plans. Chronic and pre-existing conditions are covered without waiting in the basic federal package of the northern emirates.
What is not included in minimum plans: dentistry, orthodontics and, in the federal scheme, pregnancy and childbirth. If your team wants dental or optical cover, a higher tier or an add-on must be taken out.
A practical recommendation: compare at least three quotes with the same conditions (network, co-payment and cap) and renew before the policy expires, because a coverage gap puts visa renewal at risk.
What your company must check when hiring in Dubai
Setting up insurance is part of the visa process: the employer takes out the worker's policy as a prior step to the issuance or renewal of the residence permit. Plan the annual cost per employee according to the chosen level and decide whether you also cover dependants as a talent attraction benefit.
Check that the chosen policy meets the DHA minimum for each employee's salary and that the provider is approved. A plan below the required level is not valid for the visa, and a plan that is too basic for a senior profile can be a retention problem.
Insurance is one more employment cost in Dubai, alongside the WPS and the end-of-service gratuity, but unlike these it does not depend on salary: it is a fixed annual premium that should be budgeted separately.
