How the UAE's social safety net is spreading

Having insurance does not prevent a health problem from arising, but it can help to stop it becoming a crisis. Alex Atack for The National.

Sickness and injury can befall anyone. And despite basic health insurance being a universal need, not everyone is lucky enough to have it. According to World Health Organisation figures from 2021, about 4.5 billion people - more than half the global population – are not fully covered. Not knowing if a person can afford treatment – especially for the kind of chronic injury or disease that might prevent us from earning a living – is one of the most debilitating anxieties there is.

In two weeks’ time, no one working in the UAE will have to confront such uncertainty. In a milestone decision on Monday, the Emirates launched basic health insurance for all private sector and domestic workers who do not have coverage. The mandated health provisions already in place in Abu Dhabi and Dubai will be extended to the country’s other five emirates.

UAE's nationwide health insurance scheme to begin on January 1

01:02

By establishing a nationwide standard of healthcare and placing the onus on employers to make sure their staff are insured, thousands of lives will be changed for the better. From January 1, all employers must buy an insurance package for their staff. This will be valid for two years, will cover people up to the age of 64 and will include the policyholder’s dependents. Treatment costs will be reduced and co-payments for medicines will capped at 30 per cent, with an annual cap of Dh1,500.

It is an important moment for the welfare of millions. Often, discussions about working life focus too much on white-collar jobs, the kind of positions that frequently come with health insurance as standard. The many millions more whose jobs demand that they turn up in person and perform manual labour also deserve to know that any medical problems they encounter can be treated quickly and affordably.

This contributes not only to the UAE’s competitiveness as an economy and as a work destination, but further challenges outdated assumptions about the Emirates being a transitory place with limited welfare provisions for all those working here. On the contrary, the country has been working for years to put together a comprehensive social safety net.

By establishing a nationwide standard of healthcare and placing the onus on employers to make sure their staff are insured, thousands of lives will be changed for the better

In 2018, Dubai replaced a requirement for employers to provide a Dh3,000 bank guarantee for each worker they hired with a labour insurance system. In Abu Dhabi, a mandate issued by the UAE’s Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan, ensures that Emiratis and residents of the capital unable to afford care for rare or life-threatening diseases receive free treatment at government hospitals. And in May 2022, the UAE introduced a mandatory social support programme so that citizens and expatriate workers in the public and private sectors who lose their jobs will receive a basic cash payment each month.

These are just a few examples of the steps taken by a modern state to manage a dynamic, growing and rapidly changing society. More newcomers to the UAE are staying longer thanks to its stability, opportunities, attractive salaries, flexible visa system and the ability to buy property. Establishing a comprehensive health insurance system is a responsible move towards embedding humane and compassionate principles in UAE society. Having insurance does not prevent a health problem from arising, but it can help to stop it becoming a crisis. That is good for individuals, the companies they work for and the country as whole.