New minimum capital requirements for insurers and reinsurers in the United Arab Emirates

In line with what has been instituted for brokers, the federal authorities have provided insurers and reinsurers with a three-year deadline to meet the new capital requirements. As far as insurers are concerned, the minimum capital has been set at 100 million AED (27 million USD), compared to 50 million AED (13.6 million USD) so far. As to reinsurers, the minimum capital has been set at 250 million AED (68 million USD). Furthermore, 75% of insurers' capital operating in the country must be in the hands of national institutions or originate from the Gulf Cooperation Council countries. The resolution applies to all insurers and reinsurers operating in the country (outside the free zones).