Insurance rules at Jafza

Who runs Jafza?

What insurance and guarantees do companies in Jafza need?

Property all risks

• If your company in Jafza has premises, they must be insured against all risks, including fire and perils, with Jafza insuring any premises it built in return for an annual contribution from you, and insuring your contents is at your discretion.³
• If you erect your own premises in Jafza, you are responsible for arranging the insurance in the joint names of your company and Jafza, covering clearance and replacement costs, before the completion certificate is issued.³
• Jafza's service guide lists fire and peril insurance as required for plot facilities, and lists fire insurance for all risk-related activities as applicable to plots only.¹
• Under Jafza's land lease terms, as a tenant you must insure the improvements at full reinstatement value with an insurer the landlord has approved in writing, naming the landlord as a beneficiary, and hold property owner liability insurance.⁴

Third party liability

• Each year you must take out third party liability or public liability insurance and workmen's compensation insurance for your employees under the employee sponsorship agreement with Jafza.³
• Jafza requires third party liability cover of AED 500,000 if you have up to 19 employees and AED 1,000,000 if you have 20 employees or more, per occurrence with no limit on the number of occurrences, and Jafza may revise these values by notification.³
• Jafza's service guide lists third party liability insurance as applicable to offices, plots, warehouses, showrooms and workstations.¹
• Under Jafza's land lease terms, as a tenant you must maintain the insurance the landlord requires for running your business, including third party liability insurance and environmental liability insurance.⁴

Workmen's compensation

• If you have employees in Jafza, your workmen's compensation insurance must include cover for injury and disability compensation and related medical expenses in line with Federal Decree Law 33 of 2021 on the organisation of labour relations and Cabinet Resolution 1 of 2022, and you must give Jafza copies of the policies and the insurer's certificate each year.³
• Jafza's service guide lists a workmen's compensation policy as a required insurance document for Jafza-sponsored employees only.¹

Employee protection scheme

• For employees Jafza sponsors under the employee sponsorship agreement, you are required first to apply for Jafza's Workforce Protection Programme, an insurance scheme to secure employees' rights in the free zone, at the premium the programme sets. If you are not eligible or are in default, you must provide a bank or cash guarantee instead.³
• A Jafza press release says the Workforce Protection Programme with Dubai Insurance Company replaces the bank guarantee system for companies in Jafza, National Industries Park and Dubai Auto Zone, gives companies insurance cover that will help protect their workers if their employer defaults on wages, and applies to Jafza-sponsored employees as their visas come up for renewal.⁵

Bank guarantee

• Where Jafza requires a guarantee, it must be at least one and a half months' basic salary plus a one-way air fare from Dubai to the employee's home country for each employee Jafza sponsors, from a UAE bank and in UAE dirhams.³

Do you need health insurance for your staff in Jafza?

• Jafza's rules state that all employees of companies in the zone are to be insured as the health competent authority's requirements and regulations set out, and list health insurance among the costs a recruiting company bears.³

The rule for employers across Dubai is on the Dubai page.