UAE sets minimum capital norms for insurance companies

At least 75 per cent of the UAE-established company's capital should be owned by UAE or GCC national individuals or corporate bodies.

Published: 19:36 January 2, 2010

Image Credit: Gulf News

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

According to Fatima Ishaq Al Awadi, Deputy Director of the Insurance Authority, the cabinet resolution no. 42 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 added that the resolution applies to all national and foreign insurance companies licensed to operate in the UAE, including companies that are active, cooperative and Takaful types of insurance. The insurance companies operating from free zone are exempt from the rules of the resolution.

Al Awadi indicated that 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 capital may do so, provided that the reduced capital should not be less than the amount specified in the resolution.