Policy update

Policy & Legal Updates

Dubai Mandates 30-Day Health Insurance Coverage Following Employee Visa Cancellation

Under Dubai regulations, employers must maintain an employee's health insurance coverage for 30 days following visa cancellation or until the individual departs the UAE, whichever occurs first. Outside Dubai, there is no standardized federal rule, leaving coverage duration during residency grace periods subject to employer discretion and policy terms. Dubai law requires all employers, including free zone entities, to secure health coverage through Dubai Health Authority-authorized providers.

Policy & Legal Updates

UAE Simplifies VAT Refund Process for Citizens Building Residences

The UAE Federal Tax Authority has overhauled VAT refund procedures for citizens building new homes under the Zero Government Bureaucracy Programme. The update reduces application data fields by 50% and processing times by 80%. A dedicated smart application called 'Maskan' was also launched to verify claims.

Policy & Legal Updates

UAE Urges Private Sector Firms to Meet 2026 Emiratisation Quotas by December 31

The UAE Ministry of Human Resources and Emiratisation has called on private firms with 50 or more workers to complete their 2026 recruitment quotas before December 31. Covered companies must achieve a 1% increase in Emiratisation across skilled roles in the second half of 2026 to reach a 2% annual target. Employers must recruit via the Nafis platform and comply with anti-fake Emiratisation rules.

Policy & Legal Updates

UAE Enforces Stricter Input VAT Recovery Rules on Employee Benefits

The UAE Federal Tax Authority has enforced Decision No. 17 of 2026, introducing stricter conditions for recovering input VAT on employee benefits. Following amendments to VAT Executive Regulations, employment contracts or HR policies alone are no longer sufficient to claim VAT recovery. Input tax will become an unrecoverable business expense if employers fail to meet detailed requirements across six expense categories.