Dubai’s Insurance Market Boom: What It Means for Investors and Businesses

The UAE’s insurance industry is entering a new era of expansion and maturity. Recent figures show that gross written premiums grew by 14.5 percent in the first half of 2025, reaching AED 40.9 billion, or about 11.1 billion US dollars. Property and liability insurance rose by 17.8 percent, health insurance by 12.7 percent, and life and savings products by 11.2 percent. This presents a huge opportunity for investors looking to set up insurance companies in Dubai or Abu Dhabi, here in the UAE. 

This growth reflects a structural shift in how people view financial security and long-term planning. According to Khaleej Times, 70 percent of UAE residents now plan to retire in the country. The introduction of the Golden Visa, Retirement Visa, and other long-term residency options has encouraged many to settle permanently, while a growing number of mid to high-income expatriates aged between 35 and 50 are seeking life insurance as part of their financial strategy.

Together, these trends are driving a market expected to exceed 20 billion US dollars by 2029. This rise is supported by mandatory health insurance, demand for property and motor cover, and a more financially aware population, combined with the insurance company payouts which reached an all-time high during the April 2024 floods in Dubai, where many were claiming for healthcare and vehicle repair costs.

Licensing Landscape in Dubai

For investors and businesses, the sector offers significant opportunity. However, entering the UAE insurance market requires careful navigation of the regulatory landscape. The Central Bank of the UAE oversees all insurance, reinsurance, and brokerage activities on the mainland. Companies can also establish operations within financial free zones such as the Dubai International Financial Centre or the Abu Dhabi Global Market, which are regulated by the Dubai Financial Services Authority and the Financial Services Regulatory Authority respectively.

Insurance activities may include brokerage, consultancy, agency, or reinsurance, each requiring specific regulatory approval. Identifying the right framework is crucial to ensure compliance and long-term operational success.

How Sovereign PPG Can Help

At Sovereign PPG, we support clients throughout the entire process. Our team helps identify the most suitable jurisdiction, prepare and submit applications to the relevant authorities, and structure entities that meet tax, compliance, and operational requirements. We also provide ongoing governance and reporting support to ensure continued regulatory alignment.

Conclusion

Dubai’s insurance landscape is becoming increasingly sophisticated, creating exciting opportunities for investors, entrepreneurs, and established providers alike. Success in this environment depends on the right structure and regulatory approval from the outset.

If you are exploring opportunities in the UAE’s growing insurance sector, Sovereign PPG can help you navigate the process confidently and efficiently.