March 2014

Spotlight – In international business, almost every market around the world does things in a different way. This often leads to misunderstandings and unfulfilled expectations. However, different does not need to mean difficult and knowledge of the needs and characteristics of specific geographic markets is an advantage to those who are active in the global economy. These articles help you understand different aspects of the insurance industry around the world, enabling those who do business there to feel more “at home, abroad.”

New requirements on capital and bank guarantees have come into force for the UAE’s insurance brokers. There are also stricter guidelines on brokers opening new branches as well as governing who can practise insurance brokerage services in this market. Paid-up capital for local brokers has been raised from Dh1,000,000 (US$272,250) to Dh3,000,000 (US$816,750). Foreign brokerage firms need to have a capital base of Dh10 million (US$2,722,500).

There are about a dozen leading brokerage firms, including subsidiaries of foreign operators. But the number of smaller brokerage firms, even one- or two-man entities, is many and this is where the higher capital mandated in the regulations will really be felt. Clyde & Co has written an authoritative article on the impact of these new regulations and this can be found at

We are grateful to Clyde & Co for being able to publish this report. Any comments or questions should be directed to Sheetal Bhatia at