Date: 11th July 2017
• Abu Dhabi - UAE Today
The Council of Ministers approved the amendment of the minimum capital regulations of insurance companies established in the State.
Pursuant to the amendment, the text of Article (4) of the Cabinet Resolution No. 42 of 2009 was replaced by a new text that stipulates that at least 51% of the capital of the company incorporated in the State shall be owned by natural persons, GCC nationals or by juridical persons wholly owned by citizens holding UAE or GCC nationality.
The Cabinet shall issue a resolution specifying the regulations and conditions required form the natural and juridical persons to be shareholders of the Company.
The Director General of the Insurance Authority Ibrahim Obaid Al Zaabi, said that the increase in the percentage of foreign ownership in insurance companies under the new amendment will reflect positively on the development of the local insurance market and the growth of the national economy in line with the global economic changes.
"The new amendment will help national insurance companies to establish partnerships with international companies with good financial solvency by entering them as a strategic partner and above the new Companies Law No. (2) of 2015, which will contribute to the development of new insurance products not provided by companies Insurance operating in the local market.", he clarified.
He added that increasing the proportion of foreign ownership in the capital insurance companies will contribute to the development of the insurance sector in the country and thus increase the contribution of the insurance sector in the GDP, in addition to strengthening the position of the state on the map of global competitiveness and achieve the directives of the leadership of the state and its government to reach to the number one in Economic competitiveness.
He pointed out that these changes are in line with the strategic objectives of the Insurance Authority, which aims at the organization and the development of the insurance sector in the state in proportion to the competitive knowledge economy.
He stressed that the new amendment to the minimum capital regulations of insurance companies complies with the insurance principles of The International Association Of Insurance Supervisors (IAIS).
He stated that the UAE is a destination for international companies wishing to expand their presence in the region in general and in the GCC countries specifically.
He pointed out that the State has provided all the needs of investors and international companies in a manner that ensures sustainable economic growth to invest in multiple investment sectors,
Finally, The Director General of the Insurance Authority emphasized that the insurance sector is one of the leading economic sectors that attract many international companies to join the UAE insurance market.