Dubai’s robust financial infrastructure and investor-friendly ecosystem make it one of the best places in the Middle East to launch a regulated financial business. Among its many high-potential sectors, the insurance industry in the UAE has seen consistent growth, driven by a thriving economy, mandatory coverage laws, and increasing demand across health, life, auto, and commercial segments.
If you’re considering entering the market, this guide will walk you through how to start an insurance business in Dubai, including the legal structure, licensing requirements, capital regulations, and benefits of doing business in this dynamic sector.
What is Insurance Business
An insurance business is a financial enterprise that provides risk coverage services in return for periodic premium payments. These services are offered through insurance policies, which legally bind the insurer to compensate clients for specified losses, damages, or life events.
In Dubai and the UAE, all insurance businesses are regulated under Federal Law No. 6 of 2007, supervised by the Central Bank of the UAE, which acts as the insurance authority responsible for issuing and monitoring all forms of insurance licenses in Dubai and across the Emirates.
An insurance business in Dubai may engage in:
- Issuing insurance policies (life, health, auto, property, etc.)
- Underwriting risks
- Reinsurance operations
- Managing claims and policyholder funds
- Operating as a broker or agent between insurers and clients
To operate legally, entities must obtain an insurance license in Dubai, either through a local entity, free zone, or branch of a foreign company.
Types of Insurers in Dubai
The UAE’s insurance sector consists of a wide array of licensed entities that serve different functions. Before launching your company, it’s essential to understand the various types of insurers and intermediaries allowed under UAE law.
National Insurers
These are companies incorporated in the UAE and licensed to carry out insurance activities. They enjoy full operational rights across life and general insurance segments.
Foreign Insurance Companies
International firms can operate in Dubai by establishing a branch office and securing the relevant insurance license in Dubai. They are subject to the same regulations as local companies.
Reinsurance Companies
These are firms that insure other insurance companies to spread risk. A separate reinsurance license is required.
Insurance Agents
They act as authorized representatives of one or more insurance companies to sell and promote policies. Agents must register with the Central Bank of the UAE.
Insurance Brokers
Licensed intermediaries who connect clients with insurers. Brokers must meet specific capital, solvency, and operational requirements set by regulators.
Insurance Consultants
Offer specialized advice and consultancy services related to insurance products and strategy. This activity also requires licensing.
Each of these roles must operate under strict guidelines and maintain transparency, solvency margins, and compliance documentation.
How to Start an Insurance Business in Dubai, UAE: Step-by-step
Starting an insurance business in Dubai involves regulatory approvals, financial investment, and a well-prepared business plan. Here’s a clear, step-by-step breakdown.
Step 1 – Define Your Business Activity
Decide whether you will:
- Operate as a life insurer, general insurer, or composite insurer
- Enter the market as an agent, broker, consultant, or reinsurer
Your chosen activity determines your licensing path, capital requirement, and operational obligations.
Step 2 – Prepare a Business Plan
The Central Bank of the UAE requires a detailed business plan that includes:
- Organizational structure
- Target market and strategy
- Risk management framework
- Product offerings
- Investment policy
- Financial projections
Step 3 – Choose the Legal Structure
Common legal forms include:
- Private Joint Stock Company (PJSC)
- Limited Liability Company (LLC)
- Branch of a Foreign Company
- Free Zone Company (only for support services—not for underwriting policies)
Note: Only PJSCs with minimum share capital can carry out underwriting.
Step 4 – Obtain Initial Approval from Central Bank
Submit your initial application with supporting documents to the Insurance Department of the Central Bank of the UAE. Required documents include:
- Feasibility study
- Capital proof
- Board member details
- Articles of association
- Directors’ qualifications and experience
Step 5 – Reserve Trade Name and Register Company
Reserve your trade name with the Dubai Department of Economic Development (DED) and proceed with legal incorporation.
Step 6 – Meet Capital Deposit and Guarantee Requirements
Open a UAE bank account to deposit the required paid-up capital. A bank guarantee may also be required depending on your activity type.
Step 7 – Office Setup and IT Infrastructure
You must have a physical office in Dubai with suitable IT systems, claims processing, and customer service infrastructure in place.
Step 8 – Final Licensing Approval
After final evaluation, the Central Bank will issue your insurance license in Dubai, allowing you to legally commence operations.
Benefits of Starting an Insurance Business in Dubai, UAE
Dubai’s business climate and regulatory support offer unmatched advantages for new insurance firms.
Strong Regulatory Framework
The Central Bank of the UAE provides robust supervision, ensuring trust, transparency, and protection for policyholders and insurers.
Booming Insurance Market
Driven by mandatory health insurance, vehicle insurance laws, and a growing expat population, the insurance market continues to expand.
Strategic Location
Dubai serves as a gateway to GCC, Asia, and Africa, making it an ideal hub for regional insurance and reinsurance operations.
Tax Benefits
There is no corporate or personal income tax in most sectors. Free zones also offer 100% profit repatriation.
Investor-Friendly Environment
Dubai offers 100% foreign ownership, zero import/export duties in free zones, and state-of-the-art infrastructure.
Technological Advancement
Dubai is investing heavily in InsurTech and digital transformation, giving new entrants a competitive edge through innovation.
Insurance Activities Allowed in the UAE
The Central Bank of the UAE, as the official insurance regulator, classifies insurance activities into the following:
Life Insurance
Covers life events, mortality, disability, and investment-linked policies.
General Insurance
Includes:
- Motor insurance
- Property and fire insurance
- Marine cargo and aviation
- Travel insurance
- Engineering and liability insurance
Health Insurance
Mandatory for all UAE residents. Private insurers provide basic and enhanced health plans approved by DHA (Dubai Health Authority).
Reinsurance
Offered by specialized reinsurance providers for risk distribution and capital protection.
All these activities require a license and must adhere to the Central Bank’s prudential regulations, solvency requirements, and reporting standards.
What are the Capital Requirements for Insurance Companies in the UAE?
Capital requirements vary based on the type of insurance activity:
For Insurance Companies:
- Life or General Insurance Company: Minimum AED 100 million
- Composite Insurer: Minimum AED 250 million
- Reinsurance Company: Minimum AED 250 million
For Brokers and Agents:
- Insurance Broker: Minimum AED 3 million
- Insurance Agent: Must represent a licensed insurer and meet solvency margins
Additional Financial Conditions:
- Paid-up capital must be deposited in a UAE bank account
- Maintain a solvency margin as per regulatory calculations
- Annual submission of audited financial statements
These capital thresholds ensure that only financially stable companies operate within the UAE’s regulated insurance environment.
Conclusion
Starting an insurance business in Dubai offers a high-potential opportunity backed by world-class infrastructure, growing market demand, and a transparent regulatory system. Whether you aim to launch a full-scale underwriting company or work as an intermediary like a broker or consultant, you must comply with UAE’s insurance laws and obtain an official insurance license in Dubai.
The setup process can be complex, involving multiple approvals, financial requirements, and compliance checks. That’s why working with professionals in Business Setup in Dubai is the smartest way to navigate licensing, incorporation, and market entry.
With the right strategy, partnerships, and local guidance, your insurance business can thrive in one of the Middle East’s most advanced financial ecosystems.
FAQs
How long does it take to get an insurance license in Dubai?
It usually takes 3 to 6 months depending on the completeness of your application, approvals from the Central Bank, and capital verification.
Can foreign investors start an insurance business in Dubai?
Yes. Foreign investors can open branches, or establish LLCs or PJSCs with 100% foreign ownership in approved free zones or under specific mainland provisions.
Is insurance regulated in Dubai?
Yes. All insurance activities in the UAE are regulated by the Central Bank of the UAE, which supervises licensing, compliance, and operations.
Do I need a local partner to start an insurance company?
Not necessarily. Many activities now allow 100% foreign ownership, especially in Free Zones. However, for mainland underwriting companies, local regulatory approval is still required.
What are the most in-demand insurance services in Dubai?
Currently, health insurance, motor insurance, and life insurance are the highest in demand, especially with government mandates for healthcare coverage.
