Why Health Insurance Is Now Mandatory for Every UAE Startup — What You Need to Know in 2025
Starting a business in the UAE? Beyond licenses, visas, and office space, there’s one crucial requirement every employer must prioritize in 2025 — health insurance.
From January 1, 2025, new nationwide laws require all employers, including startups and SMEs, to provide a minimum basic health insurance plan for their employees. If you’re setting up a company in Dubai, Abu Dhabi, or any other emirate, understanding this requirement is vital to stay compliant, avoid fines, and ensure smooth visa processing for your team.
What the 2025 UAE Health Insurance Law Means for Employers
The UAE Cabinet recently approved a resolution mandating mandatory basic health insurance for every employee across all emirates. This marks a significant shift from previous rules that applied mainly in Dubai and Abu Dhabi, extending the obligation to every business and employer in the country — regardless of size or free zone.
For startups and new businesses, this means:
You cannot delay or skip arranging health insurance.
Every employee on a residency visa must be covered.
The law also applies to business owners on investor visas and any family members sponsored under your visa.
What Does Basic Health Insurance Cover and How Much Does It Cost?
The new health insurance scheme offers essential medical coverage that includes:
Outpatient consultations and treatments
Emergency care and hospitalization
Maternity care
Chronic disease management
The average cost is around AED 320 per employee per year, making it an affordable but mandatory part of running a compliant business.
This insurance meets the minimum standards set by the Ministry of Health and Prevention (MOHAP) and the Dubai Health Authority (DHA), ensuring visa approval and legal compliance.
The Consequences of Not Complying With the Health Insurance Law
Failing to provide mandatory health insurance can result in:
Monthly fines of AED 500 per uninsured employee
Visa processing or renewal delays for your staff
Potential restrictions from labor and immigration authorities
Non-compliance puts your business at risk of costly penalties and operational disruptions. Health insurance is no longer optional, it’s a LEGAL REQUIREMENT embedded in UAE labor and residency laws.
How Startups Can Include Health Insurance in Their Business Setup Process
The best time to arrange health insurance is during your business setup process. Most PRO service providers and business setup companies, like Bizgate, offer health insurance registration bundled with:
Company registration and licensing
Visa applications and processing
Employee medical insurance arrangements
By integrating insurance early, you avoid last-minute hassles and ensure all residency and labor requirements are met from day one.
Final Tips: Prioritize Health Insurance to Protect Your Startup and Team
Choose DHA-approved insurance providers to guarantee visa compliance.
Budget for health insurance costs as a core part of your employee benefits plan.
Work with your business setup consultant or PRO to get expert advice and smooth onboarding.
Educate your team about the benefits of health insurance to improve retention and satisfaction.
By prioritizing health insurance in 2025, you not only comply with UAE law but also build a solid foundation to attract and retain the best talent in a competitive market.
Ready to set up your business and get compliant with UAE health insurance requirements?
Contact us today for expert guidance on company setup, visa processing, and seamless health insurance registration, all in one place. Don’t risk penalties or visa delays. Let’s get your startup ready for success!
