A travel insurance safety net being provided by UAE airlines is poised to help entice tourists back to the country as hopes soar that an end to the Iran war can be secured.
Etihad Airways has joined forces with Abu Dhabi's Department of Culture and Tourism to offer free medical travel insurance for passengers on flights from July until December.
It will cover 15 days of travel, with Etihad passengers automatically enrolled when a qualifying ticket is booked.
Emirates airline has not yet announced its full insurance offering. However, its president Tim Clark told Reuters last week that the company plans to offer “incentives other than price”.
Experts have welcomed the plans - which were unveiled before a US-Iran roadmap to peace was set out - but have stressed that passengers need to be fully aware of what their medical insurance does and does not cover before travelling.
Insurance is offered by the national health insurer, Daman, with eligibility criteria including stop-offs in Abu Dhabi, as well as those flying with Etihad to the UAE who have purchased tickets overseas.
However, the free insurance will not provide cover for pre-existing health conditions, Etihad confirmed to The National.
Check your coverage
That has prompted insurance specialists to encourage travellers, particularly those with medical conditions, to take out additional cover.
Stephen Maclaren, director of corporate solutions at Seven insurance brokers, said medical insurance should be a priority for travellers, particularly those with existing health issues.
“The free insurance offered by airlines is a great move, as it has been a difficult time for the tourism business within the UAE,” he said. “Normally these kind of free travel insurance policies would only cover emergency care, life-threatening issues and medical costs.
“It won’t cover any pre-existing medical issues or day-to-day treatments for regular illnesses like influenza or sickness.
"If an 80-year-old grandmother comes out to the UAE, for example, who may have hypertension or diabetes, she may not be covered for complications that may arise. Tourists must be careful to check the policy document to understand what it covers.”
Couple eager to return to UAE
Judith Bell, an art teacher from Bury in the UK, was forced to cancel her holiday in April with her husband, as her travel insurance was invalidated by the regional war.
“We found that countries classified with certain colours, with regard to whether the government thinks it's wise to travel to or not, affected your overall travel insurance, which includes medical cover,” said Mrs Bell.
“As the UAE was placed in a red zone because of the war, we were unable to get any travel insurance, or medical cover.
“Having travelled to the UAE several times in the past and very much enjoyed my time there both in Abu Dhabi and Dubai, I was very disappointed to have to cancel a holiday that my husband and I had booked to see my daughter in Dubai.”
With tourism beginning to rebound, and tourists looking to book winter holidays, Mr and Mrs Bell said they were considering returning to the UAE soon. Significant financial costs were placed on regional airlines by the US and Israel's four-month war on Iran.
Economic hit
Profits and financial forecasts for both Emirates and Etihad have been significantly scaled back.
Emirates officials said the conflict had cost the airline almost $700 million, while Etihad expects its predicted $1 billion net profits for 2026 to be almost completely wiped out. With a plan for peace in the region now in the pipeline, it is hoped that tourism and hospitality in the UAE will rapidly recover.
Insurance is crucial
Higher costs have made travel insurance even more important to ensure passengers are covered if things go wrong.
When refunds are delayed, denied or misunderstood, many consumers turn directly to their bank to dispute the charge and claim financial relief, experts said.
“Travellers still want to take vacations, attend events and make memories, but they're doing so with far less room for financial surprises,” said Monica Eaton, chief executive of Chargebacks911, a company that monitors disputes for global travel companies. “When a trip goes off track, many consumers aren't waiting for a resolution any more, they're going straight to their bank.”
Data from specialist insurer Multitrip.com showed medical emergencies accounted for around 43 per cent of travel insurance claims in 2025. That figure was similar to results from the Association of British Insurers, which found medical expenses accounted for 34 per cent of all cases in 2025, up from 29 per cent in 2023.
Medical fees cost insurers £262 million (Dh1.3 billion) in 2025 in the UK, at an average payout of £1,528 (Dh7,500).
Emily Jenkins, head of product and digital solutions at DW Travel, said confidence was beginning to rebuild in the travel sector, and those heading to the UAE should check the terms of any medical cover.
“As people are concerned about something happening or changing, they are booking much closer to departure,” she said. “About 30 per cent of our customers tend to book and travel within a two-week period.
“One of the biggest hurdles we've had is with the (government) travel advisory, as a lot of insurance companies will not provide cover.”
Ms Jenkins said the sort of incentives offered by airlines to encourage tourists to return, such as free medical cover, were likely to be a familiar theme this winter.
“We've already seen big staycation discounts in the last couple of months,” she said. “And we’ve definitely seen more inbound tourists actively asking about insurance, to make sure they are covered, particularly for disruption, cancellation, unexpected changes, as well as medical.”
