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The launch of universal health coverage in the UAE in 2023 should be seen in the context of earlier reforms to long-stay visas, including retiree visas.
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As the UAE and the Gulf seek ways to attract and retain more talent, these countries need to take steps to help residents develop a better sense of security. Mandatory health insurance and universal health care are the norm in developed countries—and the right thing to do.
In welfare states such as most European countries, the cost of providing universal health care is borne by the government and paid for from taxes. The GCC countries’ demographic mix — foreigners make up a large part of the population — and their exemption from income taxes make the region different from Europe’s welfare states.
In 2013, Dubai passed legislation making health insurance mandatory for every resident of the emirate. To achieve this, the government has linked it to the issuance of employment and residence visas. However, this is limited to residents of Dubai.
The latest decision of the UAE government to make health insurance mandatory for all residents by 2023 will go a long way toward creating an ecosystem of universal health coverage, which in turn will ensure a healthy population, which will not only better boost the economy but also strengthen the The country’s reputation as an ideal place to live, work and do business.
pay for health insurance
With this, the UAE has once again taken a leadership role in promoting the health and well-being of its citizens and residents. One question remains: who pays for health insurance. When Dubai launched the scheme in 2013, it required employers or sponsors to pay for health insurance. This is seen as an additional cost burden on the employer.
However, all companies are absorbing the cost and are used to it. The same model can be replicated across the country. Alternatively, in exceptional circumstances, it may be stipulated that the cost shall be shared between the insured and the guarantor or employer. This flexibility helps ensure universal health coverage for all.
The UAE recently launched a retirement visa scheme so that people can live in the country even after their careers are over. This does not require a typical sponsor or employer. Retired residents over the age of 55 can apply for a 5-year long-term visa.
incentives for retirees
Mandatory health insurance can help retirees feel more secure living in the UAE. The UAE has pioneered ways to expand the social safety net by introducing long-term residency for foreigners, especially for expatriate professionals, by introducing a 10-year golden visa scheme, mandatory health insurance, and unemployment insurance.
As the UAE emerges as a developed economy, it also needs social and economic reforms to benefit the employees and professionals who live and work in the UAE – just as one benefits from universal healthcare in the West.
While recent investment, business, immigration and labor market reforms in the UAE are attracting more professionals, investors and entrepreneurs, more reforms will help retain talent for longer. With mandatory health insurance, the UAE is moving in this direction.
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