Sharjah and the Northern Emirates are set to introduce more affordable health insurance plans, as a UAE-wide mandatory health insurance scheme will take effect on January 1, 2025. This move comes as part of the effort to provide coverage for all employees across the country. Experts have indicated that insurance rates in these regions could be cheaper than those currently offered in Dubai and Abu Dhabi.
Nabil Shanawani, assistant general manager for life and medical division at Al Buhaira National Insurance, shared insights in at the Insurance Meet 2024, stating that the new basic medical insurance package aims to mirror Dubai’s model but with a focus on reducing costs for employers. “With just three months to go, Sharjah and the Northern Emirates are poised to introduce affordable basic medical insurance, mirroring Dubai’s model, while aiming to reduce employers’ costs,” Shanawani said in a Khaleej Times report.
The introduction of mandatory health insurance is expected to benefit both private-sector employees and domestic workers. However, employers will have to manage the additional financial responsibility of providing coverage. Authorities are reviewing existing policies to ensure that premiums in Sharjah and the Northern Emirates remain lower than those in Dubai, mitigating the financial impact on businesses.
Dev Maitra, founder and MD of Savington International Insurance Brokers, expressed confidence in the affordability of insurance in these regions. “This is the first time they are introducing a mandatory scheme like this, and it will benefit people residing in the Northern Emirates,” said Maitra.
While access to healthcare facilities in Dubai and Abu Dhabi will be available, some restrictions may apply to premium healthcare networks. Nonetheless, the new scheme is seen as a positive development, providing much-needed health coverage to many residents in the Northern Emirates.