Is business insurance mandatory in the UAE?
Federal and emirate texts do not set one insurance duty for every UAE business. Duties attach to a fact about the business: a vehicle, staff, a named licence or permit, or a free-zone licence or unit.
Does every UAE business have to buy insurance?
Federal and emirate texts do not set one insurance duty for every UAE business.
| The fact | What the text says | Text | Kind of text |
|---|---|---|---|
| Owns or licenses a vehicle | To be licensed or renewed, the vehicle is insured by an insurer licensed in the State. | Decree-Law 14 of 2024, Art 19(1) | Federal decree-law |
| Has workers under the federal Labour Law | Bank guarantee of AED 3,000 per worker, or insurance for each worker. A choice of two. | Cabinet Resolution 18 of 2022, Art 8(1) | Cabinet resolution |
| Classed high-risk by MOHRE | Each worker is insured. The guarantee option is not given. Ask MOHRE for the criteria for the class. | Cabinet Resolution 18 of 2022, Art 8(2) | Cabinet resolution |
| Has employees in Dubai, free zones included | Employer enrols employees in health insurance and bears the cost. | Dubai Law 11 of 2013, Art 4 and Art 10 | Emirate law |
| Has employees in Abu Dhabi | Employer provides health cover for employees and family members. Art 3 lists exemptions. | Abu Dhabi Law 23 of 2005, Art 5 | Emirate law |
| Has employees needing a residency permit in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah or Fujairah | The government portal says employers buy a health policy as a prerequisite from 1 January 2025. It says work permits issued before 1 January 2024 that remain valid are outside this until the residency permit is due for renewal. | u.ae health insurance page | Government guidance |
| Has staff in the private sector | The worker subscribes to unemployment insurance. The text puts the duty on the worker, not the company. | Cabinet Resolution 97 of 2022, Art 2 | Cabinet resolution |
| Practises a regulated health profession, or owns a health facility | Practice without civil liability insurance for medical errors is barred. The facility owner insures its practitioners and pays the premiums. | Decree-Law 4 of 2016, Art 25 and Art 26 | Federal decree-law |
| Registers as a lawyer, auditor, court expert, private notary or translator, or holds a CBUAE broker or consultant licence | A professional liability or indemnity policy is a condition of registration or licence. | Rules by profession | Decree-laws, Cabinet and regulator texts |
| Holds a VARA licence | Professional indemnity, directors and officers, and commercial crime cover for hot wallet assets, plus anything VARA adds. | VARA Company Rulebook, Rule VI.D | Regulator rulebook |
| Is a contractor applying for a Dubai construction permit | A policy covering the works and civil liability to third parties is submitted to get the permit, for the works listed in Art 4(b). Art 2 reaches free zones. | Executive Council Resolution 28 of 2022 | Emirate legislation |
| Holds a Dubai licence or permit for a vessel, tours, a sports establishment or event, driving instruction, vehicle inspection or timeshare, or manages jointly owned property | Each instrument has its own insurance term. | Dubai permit table | Emirate legislation |
| Runs international land transport | Operations are covered by insurance from the start of the trip to its end. Other haulage is not named. | Federal Law 9 of 2011, Art 19 | Federal law |
| Applies for an Abu Dhabi event permit with rides and games, or a consumer exhibition permit | The application carries insurance for the event or exhibition. | DCT Abu Dhabi Event Licensing Manual | Authority manual, not legislation |
The rules come from the traffic decree-law,1 Cabinet Resolution 18 of 2022,2 the Dubai3 and Abu Dhabi4 health laws, the government health page,5 Cabinet Resolution 97 of 2022,6 the medical liability law,7 the VARA rulebook,8 the Dubai construction resolution,9 the land transport law10 and the DCT manual.11
Staff rows are set out in the employer guide, with separate pages on WPP and ILOE.
Can you buy cover from an insurer abroad?
Not where Art 82 of Decree-Law 6 of 2025 applies. Where cover is bought for funds or property in the State or liabilities arising there, Art 82 bars concluding the policy with a foreign insurer outside the State or in a financial free zone, subject to exceptions in Art 82(4).12 It sets where cover is placed. It is not a duty to buy.
Do free zones set their own insurance terms?
Some do. The terms below come from the zone authority, in documents of different kinds. DMCC’s Licensing Rules 2024 do not mention insurance.13 Its terms sit in an FAQ14 and an application guideline,15 enforced at renewal.
| Zone | Term | Trigger on the face of the text | Document |
|---|---|---|---|
| DMCC | Third party liability, minimum AED 1,000,000. Workmen's compensation. Employee Protection Insurance, which replaced an AED 3,000 per employee bank guarantee, with premiums from AED 85 for a one-year visa. | Liability: a unit other than business centre or flexi desk. Compensation: active employees. Employee Protection Insurance: each employee visa. | Authority FAQ and guideline, press release and schedule of charges. Not in the regulations. The FAQ words both covers as a requirement for all member companies. The guideline gives the exceptions. |
| Jafza | Premises all risks. Third party liability: AED 500,000 for up to 19 employees, AED 1,000,000 for 20 or more. Workmen's compensation. Jafza Workforce Protection Programme or a guarantee. | Premises. Employees under a personnel secondment agreement with Jafza (see the small print). | Jafza Rules, Ninth Edition (22 March 2023), Rules 10.1, 10.2 and 11.1.3. Authority service guide. |
| DWTC | Third party liability: AED 500,000 for up to 19 employees, AED 1,000,000 for 20 or more. Workmen's compensation. | Holds a DWTCA free zone licence. No employee trigger on the face of the compensation rule. | Authority rules, V15. |
| RAKEZ | Worker's compensation. Construction and liability cover before building works. Contents on issue of the Operation Fitness Certificate. | Has employees. Building works. Occupation. | Authority Operating Rules of 2023. |
| Shams | Health insurance. Third party liability and worker's compensation. | Every employer, meaning a company or branch that employs employees. | Authority Employment Regulations 2023, Reg 31. |
| Masdar City | Third party liability and worker's compensation. DoH health card for sponsored employees, which the text does not call insurance. | Licensed. Sponsored employee. | Authority regulations, March 2026. |
| DIFC | Employee health cover as required by other law. Auditor cover, and indemnity cover for named DFSA firm categories. No third party liability or compensation policy term found for ordinary companies. | Has employees. Named regulated activity. | DIFC law and regulator rules. |
| ADGM | Employee health cover. Indemnity cover for named FSRA firm categories and for licensed company and tax service providers. No third party liability or compensation policy term found for ordinary companies. | Has employees. Named regulated activity. | ADGM regulations and rules. |
| Dubai South | All risks per lease, third party liability, workmen's compensation, medical, Employee Protection Insurance. | Physical premises. Has employees. | Zone rules file on third-party storage. |
| Dubai Technology and Media Free Zone | Third party liability and worker's compensation per the employee sponsorship agreement. | Licensee. | 2004 text, current status not confirmed. |
The terms come from DMCC’s press release16 and schedule of charges,17 the Jafza Rules18 and guide,19 DWTC’s rules,20 RAKEZ’s rules,21 the Shams22 and Masdar City23 regulations, DIFC’s Employment Law,24 ADGM’s regulations,25 the Dubai South file26 and the DDA regulations.27 DFSA, FSRA and DIFC auditor terms are in the profession guide.
For IFZA, Meydan, DIEZ, SAIF Zone, Ajman Free Zone, SRTIP, Creative City, Fujairah Free Zone, twofour54 and RAK ICC, ask the authority which terms apply. The free zones hub keeps the zone-by-zone position. DAFZ, KEZAD and Hamriyah show insurance terms in leases, not in zone rules: see insurance terms in published contracts.
Do any texts require these covers?
No text found sets an insurance duty for these covers. Some set a liability without a policy.
- General public liability, mainland. No federal or emirate text found. The Civil Transactions Law sets liability for a harmful act, not a duty to insure it.
- Workmen’s compensation policy, mainland. Labour Law Art 37 puts liability on the employer. Art 13(9) has the employer bear insurances set by other legislation and names no policy. Ask MOHRE whether Ministerial Resolution 657 of 2022 adds one.
- Cyber. Decree-Law 45 of 2021 has no insurance duty.
- Directors and officers, outside VARA. Decree-Law 32 of 2021 has no such term.
- Cargo. Maritime Law Art 202(7) says a freight forwarder has no duty to insure without a special agreement. No duty on cargo owners found.
- Business interruption. No duty found.
- Decennial liability. One law firm says the UAE Insurance Authority signalled an intention to require it. No instrument found.
These come from the Labour Law,28 the Civil Transactions Law,29 the data protection decree-law,30 the companies decree-law,31 the Maritime Law32 and one law firm’s commentary.33
Can regulators, emirates and contracts add terms?
Yes.
- Art 79 of Decree-Law 6 of 2025 lets the Central Bank’s Board of Directors impose compulsory insurance against some risks by regulation.12 Ask the Central Bank whether any such regulation exists.
- For Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah, ask each economic department and municipality which business insurance rules apply.
- Ask DET or ADRA whether they check any policy when a licence is issued.
- A lease, supply contract or tender can ask for cover no law asks for.
The small print
- “Ensure”. The English text of Cabinet Resolution 18 Art 8(2) says “ensure” where Art 8(1) says insurance. The table reads it as insure.2
- Abu Dhabi health law. The text is a compilation that includes amendments to 2010.4
- DMCC. The FAQ and the guideline differ on shareholders for workmen’s compensation. The FAQ says a policy is not required for shareholders, and the guideline says it is required where the company has an active employee.1415 The press release on Employee Protection Insurance carries no year.16
- Jafza. Rule 10.1.1 has premises insured against all risks including fire and perils. The service guide lists fire and peril for plots only.1819 On third party liability, Rule 10.2.1 reads “for its Employees pursuant to the PSA” and does not say whether that qualifier applies to third party liability as well as workmen’s compensation. The guide ties third party liability to the premises type.
- Shams. The 2017 regulations, Reg 21, applied to every company or branch with no employee trigger.34 The 2023 regulations apply to every employer.22
- Dubai South and DDA. The Dubai South file is not matched to an official Dubai South host.26 The DDA text is from 2004.27
- Dubai construction resolution. It was issued on 23 April 2022 and is in force 90 days after gazette publication.9
- An insurer’s SME page. It says business insurance is mandatory and required for visa and licence compliance, varying by location and business activity. The point about location and activity fits the table. No text in the table sets a duty on every business.
- Workmen’s compensation on the mainland. Some market pages call the policy mandatory under labour law. Another market page says it is not required federally and that free zones often impose it. The Labour Law puts liability on the employer, sets no federal policy term, and named zone authorities set a policy condition.
- Flood cover. A reinsurance broker’s May 2025 report says several free-zone authorities mandated flood cover for mortgages and commercial licences, without naming a zone.35 No zone text in the table sets such a term.
Sources
35
1UAE Federal Government, Federal Decree-Law No. 14 of 2024 on Traffic Regulation. Art 19. Effective 29 Mar 2025. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. 14 of 2024 on Traffic Regulation
2UAE Federal Government, Cabinet Resolution No. 18 of 2022 Concerning the Classification of Private Sector Establishments. Art 8. Effective 1 Jun 2022. Last checked 4 Nov 2026. Source document: Cabinet Resolution No. 18 of 2022 Concerning the Classification of Private Sector Establishments
3Dubai Government, hosted by DHA ISAHD, Law No. 11 of 2013 Concerning Health Insurance in the Emirate of Dubai. Art 4, Art 10. Last checked 4 Nov 2026. Source document: Law No. 11 of 2013 Concerning Health Insurance in the Emirate of Dubai
4Department of Health Abu Dhabi, Law No. 23 of 2005 Concerning Health Insurance in the Emirate of Abu Dhabi (compilation). Art 5. Last checked 4 Nov 2026. Source document: Law No. 23 of 2005 Concerning Health Insurance in the Emirate of Abu Dhabi (compilation)
5UAE Government portal, Getting a health insurance, Page updated 8 September 2026. Last checked 4 Nov 2026. Source document: Getting a health insurance
6UAE Federal Government, Cabinet Resolution No. 97 of 2022 on the Unemployment Insurance Scheme. Art 2. Last checked 4 Nov 2026. Source document: Cabinet Resolution No. 97 of 2022 on the Unemployment Insurance Scheme
7UAE Federal Government, Federal Decree-Law No. 4 of 2016 Concerning Medical Liability. Art 25, Art 26. Effective 15 Aug 2016. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. 4 of 2016 Concerning Medical Liability
8Virtual Assets Regulatory Authority, VARA Company Rulebook. Rule VI.D. Last checked 4 Nov 2026. Source document: VARA Company Rulebook
9Supreme Legislation Committee, Dubai Legal Portal, Executive Council Resolution No. 28 of 2022 Concerning the Insurance Policy Required for Licensing Construction Works. Art 2, Art 4, Art 6. Last checked 4 Nov 2026. Source document: Executive Council Resolution No. 28 of 2022 Concerning the Insurance Policy Required for Licensing Construction Works
10UAE Federal Government, Federal Law No. (9) of 2011 regarding the Land Transportation. Art 19. Effective 6 Jul 2011. Last checked 4 Nov 2026. Source document: Federal Law No. (9) of 2011 regarding the Land Transportation
11Department of Culture and Tourism Abu Dhabi, Licensing Manual, User Guidelines, Version 1, Version 1, 2024. Last checked 4 Nov 2026. Source document: Licensing Manual, User Guidelines, Version 1
12Central Bank of the UAE Rulebook, Federal Decree-Law No. 6 of 2025 Regarding the Central Bank, Regulation of Financial Institutions and Activities and Insurance Business. Art 79, Art 82. Effective 16 Sept 2025. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. 6 of 2025 Regarding the Central Bank, Regulation of Financial Institutions and Activities and Insurance Business
13DMCC, Licensing Rules 2024. Last checked 4 Nov 2026. Source document: Licensing Rules 2024
14DMCC, Licence Renewal FAQs. Q28 to Q35. Last checked 4 Nov 2026. Source document: Licence Renewal FAQs
15DMCC, Apply for Insurance Application Guideline, Version 1, Issued 9 May 2023. Last checked 4 Nov 2026. Source document: Apply for Insurance Application Guideline, Version 1
16DMCC, DMCC to Boost Ease of Doing Business and Increase Employee Protection. Last checked 12 Nov 2026. Source document: DMCC to Boost Ease of Doing Business and Increase Employee Protection
17DMCC, DMCC Schedule of Charges. Employee Protection Insurance Premium for 1 Year Visa. Last checked 12 Nov 2026. Source document: DMCC Schedule of Charges
18Jafza, Jebel Ali Free Zone Rules, Ninth Edition, Ninth Edition. Rules 10.1, 10.2 and 11.1.3. Effective 22 Mar 2023. Last checked 12 Nov 2026. Source document: Jebel Ali Free Zone Rules, Ninth Edition
19Jafza, Insurance Document Update, Jafza services guide. Last checked 4 Nov 2026. Source document: Insurance Document Update, Jafza services guide
20Dubai World Trade Centre Authority, Free Zone Rules and Regulations, V15. Rule 10.2, Rule 10.3. Last checked 4 Nov 2026. Source document: Free Zone Rules and Regulations, V15
21RAKEZ Authority, RAKEZ Authority Operating Rules of 2023. Rule 14.4, Rule 15. Last checked 4 Nov 2026. Source document: RAKEZ Authority Operating Rules of 2023
22Sharjah Media City Free Zone Authority, Employment Regulations 2023. Reg 31. Last checked 12 Nov 2026. Source document: Employment Regulations 2023
23Masdar City Free Zone, Employment Regulations, Version 2.0, March 2026. Reg 9, Reg 11. Last checked 4 Nov 2026. Source document: Employment Regulations, Version 2.0
24DIFC Authority, DIFC Law No. 2 of 2019, Employment Law, Consolidated Version No. 5, July 2025. Art 55, Art 56, Schedule 2. Last checked 4 Nov 2026. Source document: DIFC Law No. 2 of 2019, Employment Law, Consolidated Version No. 5
25ADGM, Employment Regulations 2024, section 49. Last checked 4 Nov 2026. Source document: Employment Regulations 2024, section 49
26Dubai South (file on a third-party storage host), Dubai South Free Zone Rules, Second Edition. Last checked 4 Nov 2026. Source document: Dubai South Free Zone Rules, Second Edition
27Dubai Development Authority host, DTMFZA Employment Regulations 2004. Last checked 4 Nov 2026. Source document: DTMFZA Employment Regulations 2004
28UAE Federal Government, Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationship. Art 13, Art 37. Effective 2 Feb 2022. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationship
29UAE Federal Government, Federal Decree-Law No. 25 of 2025, Civil Transactions Law. Art 245 to Art 271. Effective 1 Jun 2026. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. 25 of 2025, Civil Transactions Law
30UAE Federal Government, Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data
31UAE Federal Government, Federal Decree-Law No. 32 of 2021 on Commercial Companies. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. 32 of 2021 on Commercial Companies
32UAE Federal Government, Federal Decree-Law No. 43 of 2023, Maritime Law. Art 202(7). Last checked 4 Nov 2026. Source document: Federal Decree-Law No. 43 of 2023, Maritime Law
33Kayrouz and Associates, Construction insurance in the UAE. Last checked 4 Nov 2026. Source document: Construction insurance in the UAE
34Sharjah Media City Free Zone Authority, Employment Regulations 2017. Reg 21. Last checked 4 Nov 2026. Source document: Employment Regulations 2017
35Guy Carpenter, One Year On: Reflections on the Gulf Floods of April 2024, May 2025. Last checked 4 Nov 2026. Source document: One Year On: Reflections on the Gulf Floods of April 2024
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