Dubai is failing to keep pace with neighbouring Abu Dhabi on healthcare reform, leaving its low-wage expatriates struggling to access basic medical treatment, a new report has found.
The gap in the emirates’ healthcare systems is also impacting the businesses of key stakeholders such as insurance and pharmaceutical firms, said analysts at Datamonitor International.
In 2006, Abu Dhabi introduced compulsory health insurance for all residents, a move Dubai planned to copy last year with the roll-out of its own health plan. However the scheme was suspended amid the credit crunch and no new timeline has been established.
“For [Dubai] expatriates, especially those on very low wages, the postponement of the health insurance reforms will mean that access to healthcare will remain patchy, since they will have to pay out-of-pocket for treatment or depend on the goodwill of their employers,” said Ruch de Silva, healthcare consulting analyst, MENA region.
A “huge percentage” of Dubai’s foreign workers are unable to afford treatment, he added.
“The residents of Abu Dhabi, whether national or expatriate, are going to enjoy a much better healthcare system because even low-wage workers are able to access basic healthcare.”
Datamonitor believes health reform in Dubai could be suspended until January 2011.
The split in healthcare delivery between Abu Dhabi and Dubai may also deter insurance firms from operating in the UAE, as each emirate sets different legal requirements.
“The different reforms have meant your insurance pools are much smaller than anticipated,” said de Silva. “Multinationals think they have access to a four million population. In fact, it’s slightly more than one million in Abu Dhabi and Dubai and because the health systems are so different.
“If the reforms were similar and insurers in Abu Dhabi and Dubai were able to combine the insurance pools, it would be a much bigger and more appealing insurance market.
If Dubai is to remain an attractive destination for expatriate workers, it must iron out the inequalities in access to medical care, de Silva said.
“The grassroots of healthcare need to be addressed now. Dubai and Abu Dhabi are both expat-centric emirates and healthcare is fundamental to building a sustainable region. Look at Hong Kong, look at Singapore. They have successfully developed good healthcare systems where expat residents can seek treatment. Abu Dhabi is addressing it, and Dubai needs to.”
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