The UAE financial system remained resilient in 2025, with improvements across most financial soundness indicators, the Central Bank of the UAE (CBUAE) has said.
In its Annual Report 2025, released recently, the CBUAE said it also assessed emerging global, regional, and domestic risks to evaluate their potential implications for financial stability. Guided by the Financial Stability Policy Committee, these efforts support forward-looking monitoring and strengthen preparedness to mitigate systemic risks.
Insurance
The insurance sector continued to expand in 2025. Gross Written Premiums (GWP) increased by 15.5% Y-o-Y, amounting to ~AED75.2bn ($20.4bn), while Gross Paid Claims rose by 11.0% Y-o-Y to ~AED46.2bn.
The retention ratio improved to 56.6%, and technical provisions reached ~AED99.2bn, reflecting higher underwriting activity and balance sheet strength.
Total assets of insurance companies increased to ~AED166.7bn at the end of 2025, compared with ~AED155.5bn at the end of 2024, reflecting continued balance sheet expansion and higher investable assets across the sector.
Takaful
Gross written contributions of takaful insurance reached ~AED6.4bn in 2025, representing an 18.5% increase compared to 2024. The takaful segment accounted for 8.5% of the UAE’s total insurance market. These developments indicate continued depth and scale within the Islamic financial services segment of the UAE’s broader financial system, said the central bank.
New licences
The number of licensed insurance entities increased by 2.5% from 560 in 2024 to 574 in 2025.
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Metrics
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2025
|
2024
|
|
GWP (AED bn)
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75.2
|
65.1
|
|
Gross Paid Claims (AED bn)
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46.2
|
41.6
|
|
Total assets at 31 December (AED bn)
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166.7
|
155.5
|
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Licensed Insurance Companies @31 Dec
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58
|
59
|
|
Related insurance professions @ 31 Dec
|
516
|
501
|
|
Total
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574
|
560
|
|
Source: CBUAE Annual Report 2025
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Strengthened supervision
The CBUAE continued to develop the regulatory framework for the insurance sector in 2025.
A key component is the Enterprise Risk Management (ERM) framework, which requires insurance companies to identify, assess and manage material risks. Another milestone was the issuance of the Insurance Group Supervision Regulation, reinforcing supervision of insurance groups at the consolidated level, according to the annual report.
Climate-related financial risk management
To support national climate commitments, the CBUAE introduced requirements for insurers and banks to integrate climate-related financial risks into governance, strategy, and capital planning. Boards and senior management must ensure these risks are addressed within risk management frameworks.