Arif Amiri, Chief Executive Officer of DIFC Authority, said, “With over 125 insurance and reinsurance entities having their operations in DIFC , it is well positioned to broaden and deepen its role as the region’s leading insurance hub. With its progressive and proportionate laws and regulations, DIFC has a proven and stable environment for financial services firms. The UAE’s visionary leadership have further helped Dubai position itself as a strong base for insurance firms.”
Dubai: Dubai International Financial Centre (DIFC), the leading global financial hub in the Middle East, Africa and South Asia (MEASA) region, has recorded a 35 per cent leap in gross written premiums from USD 2.6bn to USD 3.5bn during 2024.
Arif Amiri, Chief Executive Officer of DIFC Authority, said, “With over 125 insurance and reinsurance entities having their operations in DIFC , it is well positioned to broaden and deepen its role as the region’s leading insurance hub. With its progressive and proportionate laws and regulations, DIFC has a proven and stable environment for financial services firms. The UAE’s visionary leadership have further helped Dubai position itself as a strong base for insurance firms.”
DIFC is attracting more captive insurers, InsurTechs, and building on its role as a global hub for managing general agents (MGAs). More MGAs will strengthen the local insurance market, increase choice of products, and widen the use of insurance.
Insurers are exploring how artificial intelligence (AI) can streamline claims processing, customisation and distributing products and services. InsurTechs, once seen as a potential competitor, are shifting to collaboration with incumbents to mitigate regulatory and investment costs. Web3 and crypto assets, meanwhile, offer insurance growth opportunities as decentralised finance emerges as a key global finance trend.
DIFC strives to fortify the insurance ecosystem through continuous engagement, transparent communications, access to timely data and scope to nurture talent and provide education.
The Middle East insurance sector is thriving and well-positioned to continue expanding on the back of heavy regional investment in mega tourism, retail and infrastructure projects aimed at diversifying economies away from fossil fuel production. Dubai, for example, was ranked first globally for greenfield foreign direct investment (FDI) projects in tourism in the first half of 2024.
The USD 8trn global insurance industry is growing, spurred on by strong demand for its capacity to make economies and businesses more resilient to extreme weather events and cyberattacks, both of which are growing infrequency and severity. This boom is echoed in the Middle East, where the sector has been buoyed by a need for insurance to safeguard capital flows into the region’s growing construction and energy mega-projects.