Prevalence of Lifestyle-Related Diseases to Drive UAE Health Insurance Market at a CAGR of Around 6.5%

The UAE Health Insurance Market size was valued at around USD 8.7 billion in 2024 and is projected to reach USD 12.7 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 6.5% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. One of the prime factors driving the UAE Health Insurance Market is the steadily rising prevalence of lifestyle diseases such as diabetes, hypertension, and other cardiovascular conditions. Diabetes continues to be prevalent in the United Arab Emirates with about 1 million cases alongside hypertension, which affects other adults at about 30% due to poor lifestyle choices, stressful living, unhealthy eating habits, and physically inactive lifestyles. It's imperative to mitigate the risk of these diseases that insurance protection be provided along with appropriate financial support. Because of this, the UAE health insurance industry is also gaining height owing to changing consumer demands, new technologies, governmental regulations, rise in costs, and selective coverage by an employer. The demographic switch in UAE healthcare costs is forcing residents to take upon themselves comprehensive insurance plans that protect a wide spectrum of issues in healthcare.

Dubai and Abu Dhabi are cities where the most common is employer-provided health insurance, required by law coverage for expatriates and their dependents. The industry is changing with technological advancement and increasing use of artificial intelligence (AI) for fraud detection and claims processing to improve processing efficiency and transparency. The introduction of AI to health insurance should grow client satisfaction by providing a better claims process.

The rise in false insurance claims which has resulted in the market's poor integrity is one of the main challenges facing the UAE's health insurance sector. In both public and private hospitals fraud involves inflating medical bills, fabricating patients, and creating bills for services that were never rendered. But by utilizing cutting-edge technologies like blockchain and artificial intelligence the UAE Insurance Authority and Dubai Health Authority have strengthened their monitoring protocols to counteract this. Additionally, the market benefits from the growing popularity of value-added services. A growing focus on overall health is reflected in the inclusion of wellness programs gym memberships and mental health coverage as standard features in insurance plans. International health coverage options are also expanding to give the UAE frequent travelers and international workforce constant access to healthcare services worldwide. These factors combined offer lucrative growth opportunities for market players, further states the research report, “UAE Health Insurance Market Analysis, 2025.”

UAE Health Insurance Market Segmentation Analysis

Private Service Providers Capture a Large Market Share

Based on the service provider, the market is further bifurcated into Public and Private. The private sector has about 65% of the entire market of health insurance in the UAE. The factors that led private insurers to meet the diverse range of needs of foreign nationals are maternity, dental, and chronic illness coverage, which are normally not covered under public insurance programs. The private sector has gained further importance through its contracts with some of the best clinics and hospitals that offer policyholders some cutting-edge medical technology and reduce the wait time. The enforcement of mandatory health insurance laws, as is evidenced by the Dubai Health Insurance Law, has helped the private health insurance sector grow. The need for value-added services like wellness programs and rising healthcare costs are also reasons why employers and individuals are selecting private health insurance thereby securing its market dominance.

The Group Segment is the Most Preferred Product Type

The group segment holds around 70% share of the UAE Health Insurance Market. This dominance is primarily due to the country's large expat population and the mandatory health insurance programs for employees and their dependents mainly in Dubai and Abu Dhabi. Group insurance plans are growing in popularity as a result of employers being compelled to provide comprehensive health coverage. The segment's growth is also facilitated by the flexibility to adapt policies to organizational needs. The increasing number of corporate wellness programs and business insurance alliances that include value-added services like; fitness memberships and mental health benefits further bolsters the group policies' market dominance in the UAE health insurance sector.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including AXA Gulf Insurance, DAMAN Health Insurance, Emirates Insurance Company, Abu Dhabi National Insurance Company, Ras Al Khaimah National Insurance Company, Dubai Islamic Insurance and Reinsurance Co, Oman Insurance Company, Alliance Insurance, Orient Insurance, Islamic Arab Insurance Company, Al Ain Al Ahilia Insurance Company, Al Buhaira National Insurance Company, and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report                                  

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & service adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?