Today's Edition
Khaled Al Khawaldeh (Abu Dhabi)
The UAE is ushering in 2025 with landmark legislation aimed at addressing healthcare inequalities, environmental concerns, and economic challenges. The reforms, which include new cooperate taxes as well as genomic testing, are expected to be amongst the most disruptive reforms in recent years.
Mandatory Healthcare Across the UAE
Starting January 1, basic health insurance will be mandatory for all private sector and domestic workers across the UAE. Already in place in Abu Dhabi and Dubai, the new year will see the programme expand to Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah.
Employers must provide the coverage as a condition for issuing or renewing residency permits. Policies, priced at Dh320 ($87) per year, will cover individuals up to the age of 64, ensuring no waiting period for those with chronic illnesses.
Corporate Tax Overhaul
On the economic front, 2025 will see a significant overhaul of corporate tax laws, committing large multinational cooperations with global revenues of $793 million or more to paying a minimum 15% tax on UAE profits. The new rate, effective for financial years starting January 1, 2025, replaces the previous 9% corporate tax.
Further details on this legislation will be issued by the Ministry of Finance in due course and are expected to include tax incentives to support growth and innovation.
Dubai Strengthens Plastic Ban
Dubai is intensifying its efforts to reduce plastic waste with a ban on Styrofoam containers, cups, and a range of plastic products including straws, stirrers, and table covers. This follows the emirate's ban on single-use bags in 2024.
The phased initiative will culminate in January 2026 with restrictions on plastic cups, lids, and cutlery. The move aligns with Abu Dhabi's successful ban on single-use plastic, which has eliminated 360 million bags - equivalent to 2,400 tonnes of waste - since 2022 according to the Environment Agency Abu Dhabi.
Higher Emiratisation Targets
From January, private companies with 50 or more employees must increase Emiratisation to 7% by June 2025 and 8% by the end of the year. Firms failing to meet these goals face fines of Dh96,000 for each unfilled Emirati position. The initiative is part of a broader push for Emiratis to make up 10% of the skilled private workforce by 2026.
Mandatory Genetic Testing for Emirati Couples
In a globally unprecedented move, all Emirati couples marrying from January onwards will undergo mandatory premarital genetic testing. This measure aims to reduce the prevalence of genetic diseases, particularly those linked to consanguineous marriages, and promote informed family planning.
