New capital rules set for UAE insurers

The resolution applies to all national and foreign insurance companies Fatima Ishaq Al Awadhi, Insurance Authority. (SUPPLIED)

The Cabinet has issued a resolution setting the minimum subscribed or paid up capital of Dh100 million for establishing insurance firm and Dh250 million for re-insurance firm.

According to Fatima Ishaq Al Awadhi, Deputy Director of the Insurance Authority, the Cabinet Resolution No42 for 2009 stipulated that at least 75 per cent of the UAE-established company's capital should be owned by UAE or GCC national individuals or corporate bodies.

She said the resolution applies to all national and foreign insurance companies licensed to operate in the UAE, including companies that are active co-operative and Takaful types of insurance. The insurance companies operating from free zone are exempt from the rules of the resolution.

Al Awadhi said as per the resolution, all insurance companies are asked to work on rectifying their status within three years from the resolution which will go into force from the date of publishing in the official gazette.

Insurance firms willing to reduce their capitals may do so, provided that the reduced capital should not be less than the amount specified in the resolution.

 

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here

 

Print Email