The UAE insurance industry will witness further growth and development in 2026 and the following years, Mr Khaled Mohammed Al Badi, Chairman of the Emirates Insurance Federation (EIF) and the Gulf Insurance Federation, has said.
In an interview with the newspaper Al Khaleej, he predicted that the industry’s growth would be supported by economic expansion and a significant influx of foreign capital. Aside from a steady population increase, growth is being accelerated by digital transformation, heightened consumer awareness and a strategic pivot back to technical pricing standards from fierce price-cutting policy that prevailed in some of the previous years.
Mr Al Badi said, “UAE insurance companies were able to end the 2024 fiscal year with a strong financial performance, with indications that this good performance will extend to overall financial results for 2025.”
In response to a question about the most significant challenges facing local insurance companies in the UAE, Mr Al Badi stated that competition in the UAE insurance market was not limited to foreign companies, but was, and still is, among the locally-incorporated insurers themselves. This competition has sometimes taken an unfortunate turn, with some companies resorting to price-cutting tactics to attract customers, without considering the damage this inflicts on the market and their own reputation.
Global reinsurance
Mr Al Badi pointed out that the UAE has been, and continues to be, a vital regional reinsurance hub, leveraging its strategic geographic location, robust regulatory environment, and advanced infrastructure.
The relevant authorities in the UAE have been, and continue to be, actively working to attract more global reinsurance companies to the market, encouraging them to establish headquarters in hubs such as the Dubai International Financial Centre (DIFC).
He added, "In Abu Dhabi, International Holding Company (IHC) has officially launched RIQ Re, a new global reinsurance platform headquartered in Abu Dhabi Global Market (ADGM), with financing commitments exceeding $1bn and other insurance commitments exceeding $10bn."
Another favourable development is that the convergence of health technology and insurance will lead to a greater and deeper transformation in the coming years as the UAE seeks to strengthen its healthcare system, he added.
AI systems
Mr Al Badi said, “The sector is witnessing rapid positive developments driven by digital transformation and customer-centric innovations that integrate the latest technologies. There are strong indications that 2026 and the years following will see a wider adoption of AI-powered customer service systems.”
Sustainability
He pointed out that insurers operating in the country are also increasingly focusing on sustainability in their reports, with the emergence of green insurance initiatives such as those for hybrid and electric vehicles. Many are moving towards offering innovative solutions that serve sustainable development goals, both environmental and social.