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Gulf Countries’ Social Insurance Report

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Updated: Apr 29th, 2020

Social Insurance: Social insurance is the type of compensation that is offered and controlled by a government for the people who are aged, handicapped, or unemployed. People who are given facilities as per this insurance, should meet certain requirements.

Financial reimbursement for healthcare is taken as an example of social insurance. Social insurance programs, which include healthcare, consist of the network of doctors and hospitals. These service providers concur in seeing people who are covered under this insurance. These service providers are paid by the government for providing their services (Social Insurance, 2014). Social insurance can be defined in the following manner:

“Social insurance, public insurance program that provides protection against various economic risks (e.g., loss of income due to sickness, old age, or unemployment) and in which participation is compulsory. Social insurance is considered to be a type of social security” (Social Insurance, 2014, Para 1).

In Gulf countries, it is comparatively easy to manage these welfare programs for their people since the population is not very high in such countries, but they have high gross domestic products. Consequently, people are not compelled there to do any kind of payment for such schemes, and at the same time, the government also does not encourage the high costs of managing such schemes.

The nationals of such countries are automatically offered pensions, medical care, sickness and maternity coverage, childcare, and unemployment benefits by their government. In some cases, their government provides them disability and housing benefits (Social Security, 2014).

Social insurance programs are related to GOSI. As GOSI provides people of gulf countries a decent standard of living and takes care of their safety, social insurance also aims to do so by providing various facilities to people. Actually, GOSI puts into practice social insurance rules by collecting contributions from employers, and it pays the benefits to the people who are insured, including their family members.

GOSI was started in 1969.

“The Social Insurance Law was issued under the Royal Decree No. M/22 dated 15/11/1969. The Annuities Branch was implemented on 01/01/1393H and the Occupational Hazards Branch on 01/07/1402H. The Law was amended by the Royal Decree No. M/33 dated 29/11/2000 and implemented as of 01/04/2001” (Brief on the General Organization for Social Insurance, 2012, Para 1).

The initial mission of GOSI was to provide insurance coverage to the people of the gulf. The program aimed to collect contributions from employers. The benefit of this contribution had to be given to appropriate contributors. The families of the contributors were also part of this program.

This scheme is based on the harmony and cooperation of the people of society. The workers from both the fields private as well as the public are offered benefits through this scheme. The aim of this scheme is to provide a stable life for the people who contribute to this scheme. Their families are also covered in this benefit.

When the first law of social insurance was made in 1969, a regulatory structure was also created, which included conditions like old age, disability, and survivors, but it was implemented in 1973. The law related to work injury was also created at the same time, but it was also implemented in 1973 (Saudi Arabia, 2010). The need for this scheme was understood chiefly to provide the people with all the necessary benefits.

GOSI has achieved its goal by providing its contributors to the benefits related to medical care, pensions, any occupational hazards, etc.


Brief on the General Organization for Social Insurance (2012). Web.

(2010). Web.

(2014). Web.

(2014). Web.

(2014). Web.

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