Doctors at the Musaffah camp tackle illnesses that fall through the cracks of basic health insurance plans provided by businesses. Galen Clarke / The National nanthapuram District Expatriates Association came together to provide free healthcare services in Musaffah.
Doctors at the Musaffah camp tackle illnesses that fall through the cracks of basic health insurance plans provided by businesses. Galen Clarke / The National nanthapuram District Expatriates Association came together to provide free healthcare services in Musaffah.
Doctors at the Musaffah camp tackle illnesses that fall through the cracks of basic health insurance plans provided by businesses. Galen Clarke / The National nanthapuram District Expatriates Association came together to provide free healthcare services in Musaffah.
Doctors at the Musaffah camp tackle illnesses that fall through the cracks of basic health insurance plans provided by businesses. Galen Clarke / The National nanthapuram District Expatriates Associat

In tough times, health is a casualty


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As one looks further down the income scale, the gap becomes clear - people who earn the least are most likely to have stopped or cut back on spending on their own health care. For workers earning less than Dh45,000 (US$12,000) a year, more than half (51 per cent) are in that position, cutting back or stopping spending on both prescription and over-the-counter medicines.

Meanwhile, of those in the top income bracket, earning more than Dh250,000 a year, just 23 per cent say they have cut or stopped their spending on prescription medicines, and 26 per cent on over-the-counter drugs. Ruch de Silva, a health care consulting analyst with Datamonitor, which conducted a study of 305 men and women across the country, says that the high price of drugs in the UAE. The World Health Organisation found last year that medicines cost 23 times more than the international recommended prices.

"During a recession like this, people would tighten their belts in general and cut down on some components of their lifestyle," said Mr de Silva. "But the worrying thing for everyone, not just the country but to employers as well, is that people are making cutbacks on their health care, which means, if they get really ill in the long run, someone will end up having to pay, because they will either not turn up for work, or their family will suffer, or complications will set in as in the case of diabetic patients."

At Sahar Pharmacy in Dubai's Al Baraha area, however, pharmacist Unni Krishnan, from India, said that the effects of the recession could be clearly felt. "We are definitely selling much less than usual," said Mr Krishnan. "This area is a poorer area, there are a lot of workers here, and they buy over the counter medicines for things like cold, fever, headaches, cheap solutions for their health problems, but sales are still less," he said.

Mr Krishnan also said that the number of patients coming in with prescriptions had declined. "Everyone wants to save money now, we can see that definitely. People even ask us for a cheaper alternative to whatever medicine they need." Ahmad Yehia, a pharmacist from Egypt working in Al Yamama pharmacy in Sharjah, also painted a bleak picture. "Some regulars who have been coming here for years to get their medication - like diabetics who use Glucophage or patients with high blood pressure who buy Atacand, or even the cholesterol patients who need Lipitor - are not coming as often," said Mr Yehia. "Maybe they are not taking their medication daily to make it last."

Mr de Silva said pharmaceutical companies should acknowledge that they had a social responsibility to improve the accessibility of drugs to people of different incomes. "Sanofi Aventis, for example, have spoken about a pricing policy for different income levels," said Mr de Silva. "How they will execute this remains to be seen, but having certain types of drugs cheaper in certain countries and maybe to certain people as well could be a solution."

This would require guidance from regulators like the Ministry of Health and the health authorities, Mr de Silva said. Otherwise, people would continue to look into other ways of cutting costs, either through splitting their pills, missing their medication, avoiding physicians, or relying on the internet and alternative medicine. Dr Khaliq Raza Khan, a general surgeon from Pakistan in the Ismail Medical Centre in Dubai, usually treats low-income patients. He was recently treating workers at a labourers' clinic in Al Quoz industrial area.

"The workers ask me to prescribe them cheap medicine, some beg me not to take money from them because they cannot afford the Dh20 or Dh30 of the consultation anymore," said Dr Khan. "Some even share the same antibiotic for different infections in order to save money." Omeir Ahmed, 43, a taxi driver in Dubai, said although he had basic insurance, he would still rather spend money on food and rent, or send it to his family in Pakistan, than on medication or doctor visits.

Lydia Peridakis from Australia, 35, is a mother of two whose husband was laid off last September. She said that until her husband found employment in November, finances were tight for her family, who live in Sharjah. "Of course we automatically started thinking of ways to save money," she said. "We did big things like cancel a family holiday and put off purchasing a second car, but we also did little things like cut back on some pharmaceutical expenses, at least for myself and my husband.

"Even if we had stayed unemployed and didn't have insurance, we would still pay to see a doctor if the kids needed it," she said. @Email:hkhalaf@thenational.ae

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer