What is the corporate tax rate in the UAE?

UAE corporate tax is 9% on taxable income above AED 375,000. Income below this threshold is taxed at 0%. Freezone companies can qualify for 0% corporate tax on qualifying income if they meet substance requirements and don't elect for standard tax.

Do I need to register for VAT in the UAE?

VAT registration is mandatory if your taxable supplies exceed AED 375,000 annually. Voluntary registration is available at AED 187,500. The standard VAT rate is 5% on most goods and services.

How much does it cost to hire employees in the UAE?

Beyond salary, employers pay visa costs (AED 3,000-7,000 per employee), health insurance (AED 600-2,500/year), and end-of-service gratuity (21 days' salary per year for first 5 years). WPS compliance and payroll processing adds AED 50-200/employee/month.

What is WPS in the UAE?

The Wage Protection System (WPS) requires employers to pay salaries through approved UAE banks or exchange houses. It ensures timely payment and compliance with UAE labour law. Non-compliance can result in fines and visa processing blocks.

UAE Health Insurance Guide 2026: What's Required and What It Costs

Quick Answer: Health insurance is mandatory in Dubai and Abu Dhabi. This guide covers the rules, costs, best providers, and what employers and self-employed residents need to know.

Health insurance is not optional in the UAE. Dubai and Abu Dhabi both have mandatory health insurance laws, and if you’re employing staff or setting up residency, you need to understand how it works before you get started.

This guide covers the rules, what it costs, which providers are worth considering, and what you need to do as an employer or self-employed resident.

Is Health Insurance Mandatory in the UAE?

Yes, but the rules differ slightly by emirate.

Dubai: The Dubai Health Authority (DHA) requires all residents to have health insurance. Employers must provide health insurance for all employees and their dependants (spouses and up to three children under 18). Freelancers and self-employed individuals must arrange their own cover.

Abu Dhabi: The Department of Health (DOH) has required health insurance for residents since 2006 — one of the earliest mandatory schemes in the region. Employers cover employees; individuals on investor or freelance visas must self-insure.

Other emirates (Sharjah, Ras Al Khaimah, Ajman, etc.): No mandatory scheme currently, though this may change. Health insurance is still strongly recommended.

If you’re applying for a UAE residence visa, you’ll typically need active health insurance before the visa is processed. The immigration process has become closely linked to insurance status.

Employer Responsibilities

If you’re running a company in the UAE and hiring employees, health insurance is your responsibility. The rules in Dubai:

Employers must provide health insurance to all employees regardless of salary level
The employer must also cover the employee’s spouse and up to three children under 18, or pay a contribution toward their coverage
Failure to provide insurance can result in fines from DHA (up to AED 500 per employee per month)

For companies with fewer than 100 employees in Dubai, the standard offering is the Essential Benefits Plan (more on this below). Larger companies typically offer richer plans.

If you’re planning to hire staff in the UAE, factor health insurance into your cost planning from day one. See our How to Hire Employees in UAE guide for the broader employment picture.

Types of Health Insurance Plans

Essential Benefits Plan (EBP) — Dubai

The EBP is a baseline plan mandated by Dubai for employees earning under AED 4,000/month. It’s designed to ensure basic coverage is affordable for lower-income workers.

Key features:

Coverage limit: AED 150,000 per year per person
Covers emergency and inpatient treatment, basic outpatient, maternity (up to AED 10,000 per pregnancy), and diagnostics
Network: a defined network of clinics and hospitals (not all private hospitals are included)
Cost to employer: typically AED 550-700 per person per year

The EBP is the floor, not the ceiling. It covers essentials but has gaps — notably limited specialist access and a restricted network. Many employees on EBP pay co-payments at the point of care.

Enhanced Plans

For employees earning above AED 4,000/month, or for companies wanting to offer better benefits, enhanced plans provide:

Higher coverage limits (AED 500,000 to AED 1,000,000+ per year)
Broader hospital networks including major private hospitals
Lower or zero co-payments
Dental and optical add-ons available
International coverage options

Cost range: AED 1,500-5,000 per person per year for a standard enhanced plan. Senior staff, older employees, or plans with higher limits can reach AED 8,000-15,000+.

Individual Plans (Self-Employed / Investors)

If you’re on an investor visa, freelance visa, or golden visa and not employed by a company, you need to source your own plan.

Good options for individuals:

Entry-level individual plan: AED 1,200-2,500/year. Basic coverage, limited network. Fine for healthy individuals who want to meet the residency requirement.
Mid-range individual plan: AED 2,500-6,000/year. Broader network, better outpatient coverage. Suitable for most self-employed residents.
Comprehensive plan: AED 6,000-15,000+/year. High limits, wide network, dental/optical included. Worth considering if you have a family or specific health needs.

If you’re bringing family members to the UAE, you’ll need to cover them too. See our How to Sponsor Family in UAE guide for the visa side of this.

Costs: What to Budget

Here’s a practical cost summary for common scenarios:

Scenario	Annual Cost Per Person (AED)
Employee on EBP (basic)	550-700
Employee on standard enhanced plan	1,500-3,500
Senior employee / premium plan	5,000-15,000+
Self-employed individual (basic)	1,200-2,500
Self-employed individual (mid-range)	2,500-6,000
Family plan (2 adults + 2 children)	8,000-20,000+

For small businesses budgeting staff costs: add AED 2,000-4,000 per employee per year as a rough health insurance estimate, depending on what plan tier you offer.

Best Health Insurance Providers in UAE

Several insurance companies operate in the UAE. The main ones:

Daman (National Health Insurance Company): Largest health insurer in Abu Dhabi. Administers the Thiqa programme for UAE nationals in Abu Dhabi. Good network in Abu Dhabi; available across UAE. Strong for Abu Dhabi-based businesses.

GIG Gulf (formerly AXA Gulf): One of the largest private health insurers in the UAE. Wide hospital network across all emirates, competitive pricing for group plans, solid individual and SME options.

Bupa Global: International provider with UAE presence. Good for individuals or families who travel frequently and want international coverage. Premium pricing.

Cigna: International coverage focused. Popular with multinationals and expats who want seamless coverage across countries. Higher cost.

Orient Insurance: UAE-based insurer with competitive group plan pricing. Popular with SMEs. Good option for small business owners looking for straightforward group plans.

NAS (National Insurance Company): Mid-market option, often used by smaller employers. Competitive on price.

MetLife: Established provider, popular for group plans with life insurance bundled.

For most small UAE businesses, GIG Gulf, Orient Insurance, or NAS offer the best balance of price and network. Get quotes from at least 3 providers — rates vary significantly.

How to Get Quotes and Set Up Cover

For Employers

Contact 2-3 insurance providers directly or use a UAE-based insurance broker
Provide employee headcount, age range, and desired coverage tier
Compare quotes on: premium cost, hospital network, co-payment structure, claims process
Once chosen, each employee completes an enrolment form
Insurance cards are issued (usually within 1-2 weeks)
Register with DHA (Dubai) to confirm compliance

Using an insurance broker saves time — they compare multiple insurers on your behalf and often negotiate group rates. Brokers are free to use (they earn commission from the insurer).

For Individuals

Go directly to an insurer’s website or use a comparison site
Provide your age, nationality, desired coverage level, and any pre-existing conditions
Compare network hospitals, annual limit, and co-payment terms
Purchase online or via a broker
Start immediately or with a short waiting period (typically 30 days for non-emergency claims)

Pre-existing conditions are often excluded for the first 6-12 months on new plans, or result in premium loadings. Disclose accurately — non-disclosure can invalidate claims.

What Isn’t Covered

UAE health insurance plans commonly exclude:

Cosmetic procedures
Pre-existing conditions (often for the first year)
Fertility treatment (unless specifically added)
Dental (unless you have dental add-on)
Optical / spectacles (unless included in plan)
Mental health treatment (improving, but still limited on many plans)
Treatment outside the UAE on standard plans (international plans cover this)

Read the exclusions section carefully before buying. The cheapest plan is rarely the cheapest plan when you factor in what it won’t pay for.

Fines for Non-Compliance in Dubai

DHA actively monitors insurance compliance. Consequences for employers without valid coverage:

Fine of AED 500 per uninsured employee per month
Visa renewal blocks for employees without active coverage
Potential issues with trade licence renewal

Don’t leave this to the last minute. If you’re hiring, get insurance sorted before the employee starts.

Health Insurance and Visa Applications

From a practical standpoint, health insurance is required at several points in the UAE residency process:

New residence visa: You need active insurance before the visa can be issued in Dubai
Visa renewal: DHA checks insurance status at renewal
Employee onboarding: Your employee’s visa process requires insurance documentation

Your agent or PRO service typically coordinates this. If you’re self-managing visas, make sure insurance is in place before you submit.

For more on the visa process, see UAE Visa Types Explained.

Quick Summary

Health insurance is mandatory in Dubai and Abu Dhabi for all residents
Employers must cover employees and their immediate family
The Essential Benefits Plan (EBP) is the minimum baseline in Dubai, costing AED 550-700/year per person
Individual plans for self-employed or investors start around AED 1,200/year
Main providers: Daman, GIG Gulf, Orient Insurance, NAS, Bupa, Cigna
Get at least 3 quotes before buying — prices vary significantly
Non-compliance in Dubai means fines of AED 500 per person per month

Getting this sorted early saves headaches. Whether you’re setting up a company and hiring staff or just arranging your own residency, health insurance is one of those things that’s much easier to set up at the start than to fix later.

For businesses managing health insurance across a team, Horilla HRM via WireApps tracks employee insurance policy details, renewal dates, and dependant coverage alongside payroll and visa records — all in one system.