Construction insurance rules in the UAE
Dubai ties a policy to the construction permit. RAKEZ ties cover to Building Works. Other cover appears in contracts and leases. Each duty attaches to a permit, works or a signed document.
Which insurance rules apply to building and civil contractors?
These rules name this kind of business or the work it does.
- Dubai. If you are a contractor licensed in Dubai, including its special development zones and free zones such as the Dubai International Financial Centre, and you are appointed for construction of a building, alteration or addition works of 300 square metres or more, demolition of a building, shoring, or other works Dubai Municipality sets, you must submit an insurance policy covering the works and civil liability to third parties to get a construction permit issued after Executive Council Resolution No. 28 of 2022 took effect. For construction, alteration or addition works, the policy must run from the permit date until one year after the competent entity issues the Certificate of Completion, and it replaces security deposits.1
Rules for any employer
- Dubai. Dubai Law No. 11 of 2013 requires employers to enrol employees in health insurance, bear the cost and keep it valid for the whole service period. It applies across the emirate, including special development zones and free zones such as DIFC.19
- Abu Dhabi. Abu Dhabi Law No. 23 of 2005 requires an employer to provide health insurance for its employees and their family members. There is no residence permit, renewal or employment without enrolment.20
- Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. From 1 January 2025 an employer buys a health insurance policy as a condition of the residence permit for private sector employees and domestic workers. The UAE Government portal names the Ministry of Human Resources and Emiratisation as the source and describes the rule as extending to Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah.21
- Every emirate. If your establishment is subject to the federal Labour Law (Federal Decree-Law No. 33 of 2021), you must provide either a bank guarantee of AED 3,000 for each worker or insurance for each worker, under the mechanisms approved by the Ministry of Human Resources and Emiratisation.22
- Every emirate. If you employ staff in the private sector or the federal government, each worker must subscribe to the Unemployment Insurance Scheme by buying a policy that insures them if their service ends in the cases where they are eligible. The duty is on the worker, not on you as the employer, and investors who own and work at the establishment, domestic workers, temporary contract workers, workers under 18 and specified retirees are excluded.23
Each emirate page sets out the rule and the authority. Dubai and Abu Dhabi.
How many building and civil contractors are licensed?
| Emirate | Licences | Counted from | As of |
|---|---|---|---|
| Abu Dhabi | 24,745 | Abu Dhabi Department of Economic Development open data | 6 October 2026 |
| Ajman | 1,264 | Ajman Department of Economic Development open data, activity table | 20 March 2024 |
A licence counts once, however many activities it holds. Abu Dhabi and Ajman publish licence data by activity as open data.
| ISIC class | Class title | Abu Dhabi licences |
|---|---|---|
| 4100 | Construction of buildings | 21,888 |
| 4210 | Construction of roads and railways | 1,540 |
| 4220 | Construction of utility projects | 5,109 |
| 4290 | Construction of other civil engineering projects | 1,041 |
| 4311 | Demolition | 1,036 |
| 4312 | Site preparation | 971 |
Which types of cover should building and civil contractors read about?
How much insurance is written for this kind of work?
The Central Bank reports engineering, construction and energy for all customers, not for building and civil contractors alone.
Do free zones set their own insurance rules for this work?
| Free zone | What the rule says |
|---|---|
| DAFZ | Under the Dubai Airport Free Zone 2025 lease terms, if you or your contractors carry out works on the premises, you must hold contractor's all risks insurance and workmen's compensation insurance in the joint names of the landlord and your company, in line with statutory and regulatory requirements. |
| DAFZ | Under the Dubai Airport Free Zone 2025 lease terms for packages, the landlord insures the building, and if you carry out works you must hold contractor's all risks insurance and your own workmen's compensation insurance in the joint names of the Dubai Airport Free Zone Authority and your company, in line with statutory and regulatory requirements. |
| Dubai Healthcare City | Under the Dubai Healthcare City lease terms, if you or your agents or contractors carry out any work on the premises, you must hold contractor's all risks insurance and workmen's compensation insurance for a reasonable amount per occurrence to the satisfaction of the landlord and Dubai Healthcare City, in line with the authority's and the landlord's requirements. |
| Dubai South | In Dubai South Free Zone, sub-contractors and any other legal or beneficial owners of plots of land under development must hold valid contractor's all risks insurance policies and third party insurance policies. |
| RAKEZ | Before you start building works in RAKEZ, you must insure the works, and the plant, materials and equipment used for them, for at least the full reinstatement cost of the works and the full replacement value of the plant, materials and equipment, plus an extra 10% of that insured amount, until the Operation Fitness Certificate for the works is issued. |
| Shams | In Sharjah Media City Free Zone, sub-developers, contractors and any other legal or beneficial holders of rights in land under development must hold valid contractor's all risks and third party insurance on terms the free zone authority accepts, and give the authority evidence of it on demand. |
| Umm Al Quwain Free Trade Zone | In Umm Al Quwain Free Trade Zone, sub-contractors and any other legal or beneficial owners of plots of land under development must hold valid contractor's all risks and third party insurance on terms the free zone authority accepts, and give the authority a copy on reasonable written notice. |
Dubai and RAKEZ place the duty on different people at different moments
| Point | Dubai, Resolution 28 of 2022 | RAKEZ, Operating Rules rule 15.1 |
|---|---|---|
| Who holds the duty | A contractor licensed to practise contracting in Dubai and appointed to the works | The Licensee, which may have the policies taken out on its behalf |
| Trigger | Applying for a permit | Before starting Building Works |
| Works in scope | Building construction, alteration or addition of 300 square metres or more, demolition, shoring, and works Dubai Municipality adds | Building Works by a contractor on the Approved List, for a new building or alteration of a structure at Leased Premises |
| Cover named | Risks, losses and material damage to the works, and civil liability to third parties | The works with plant, materials and equipment, public and third party liability, and workers' compensation |
| Sums and limits | None in Art 4 to 6. Art 7 leaves the mandatory scope to a standard template | Works at full reinstatement cost and plant, materials and equipment at full replacement value, plus 10% of the insured amount. Liability limits are amounts the Authority prescribes, UNKNOWN |
| Period | Building, alteration and addition: permit date to 1 year after the Certificate of Completion. Demolition and shoring: to the certificate | Works cover to the Operation Fitness Certificate. Liability and workers cover: any occurrence in the 3 years from that certificate |
| If the cover falls short | The permit application may be rejected | The Building Permit may be suspended |
| Changing the policy | No cancellation or change without approval | Terms must be acceptable to the Authority |
Art 10(a) of the Dubai Resolution says the policy replaces any security deposit or financial guarantee collected from a contractor for the permit. Holding a contracting licence does not trigger Art 4 by itself. The text attaches to a permit for the listed works. An alteration under 300 square metres sits outside Art 4(b), unless Dubai Municipality adds that work under Art 4(b)(5).
The Resolution was issued on 23 April 2022 and takes effect 90 days after Official Gazette publication. Decree No. (19) of 2025 cites it in its preamble.3 Dubai Law No. (3) of 2026 on building quality and safety has no insurance term, and it refers to security deposits.4
Contract and lease terms name cover the two rules do not
Fenwick Elliott’s commentary says some covers “may be mandatory for the purposes of obtaining the necessary engineering classifications” or are commonly required under UAE construction contracts. The passage names no instrument. It also says FIDIC forms are the most commonly used in the UAE and their base terms are often heavily amended.5
Both law firm pages used here cite the old Civil Code numbering, Art 880 onward. Since 1 June 2026 the provisions are Art 821 to 824 of Decree-Law 25 of 2025.6 Kayrouz and Associates is also the source for the summary on taking over and defects.7
The nearest premium class includes energy
The CBUAE reports one class for engineering, construction and energy, with no split for contractors’ all risks.
| Measure | Value | Period |
|---|---|---|
| Gross written premium | AED 4,284.1 million | 2025 |
| Gross written premium | AED 4,102.5 million | 2024 |
| Paid claims | AED 1,590.7 million | 2025 |
| Incurred claims | AED 466.2 million, down 82.3% | 2025 |
| Gross loss ratio | 39.8% paid, 11.7% incurred | 2025 |
| Retention | 15.7% | 2025 |
| Policies | 80,446 | 2025 |
Sources
CBUAE 2025 report.8
FCSC’s table for 2024 shows 71,666 policies in the class and an average premium of AED 57,244.9.9 That average mixes all policies in the class, energy with construction. It is not a price.
Fig. 1.Abu Dhabi has the largest allocated share of engineering premium
Gross written premium, engineering, construction and energy, 2025, AED million.
5 categories. Highest: Abu Dhabi, 1,554.4 AED million. Lowest: Other four emirates, 35.6 AED million.
Data and source
Source: Central Bank of the UAE, Annual Statistical Report for the Insurance Sector of the UAE 2025, Table 24A. Accessed 4 Nov 2026.
| Allocation | Gross written premium |
|---|---|
| Abu Dhabi | 1,554.4 AED million |
| Outside UAE | 1,399.4 AED million |
| Dubai | 1,210 AED million |
| Sharjah | 84.7 AED million |
| Other four emirates | 35.6 AED million |
Of the AED 2,884.6 million booked inside the UAE, Abu Dhabi holds 53.9% and Dubai 41.9%. Outside UAE is 32.7% of the whole class. The table does not state its allocation rule, so it does not show where the risk sits.
The rules in full
Rules for any employer
| Rule | Where it comes from |
|---|---|
| If your establishment is subject to the federal Labour Law (Federal Decree-Law No. 33 of 2021), you must provide either a bank guarantee of AED 3,000 for each worker or insurance for each worker, under the mechanisms approved by the Ministry of Human Resources and Emiratisation. | Cabinet Resolution No. (18) of 2022 Concerning the Classification of Private Sector Establishments, Art 8(1)22 |
| If the Ministry of Human Resources and Emiratisation classifies your establishment as high-risk, you must insure each worker under the mechanisms the Ministry approves, and the bank guarantee option does not apply to you. | Cabinet Resolution No. (18) of 2022, Art 8(2)22 |
| For each employee, your establishment must provide either an insurance policy under the Ministry of Human Resources and Emiratisation guide, or a bank guarantee of at least AED 3,000 from a bank operating in the UAE that is valid for one year, renews automatically and is payable on demand. | Ministerial Resolution No. 318 of 2022 Concerning Bank Guarantees and Employees Protection Insurance Scheme, Art 1 |
| If you employ staff in the private sector or the federal government, each worker must subscribe to the Unemployment Insurance Scheme by buying a policy that insures them if their service ends in the cases where they are eligible. The duty is on the worker, not on you as the employer, and investors who own and work at the establishment, domestic workers, temporary contract workers, workers under 18 and specified retirees are excluded. | Cabinet Resolution No. (97) of 2022 Concerning the Mechanisms and Controls of Implementing the Unemployment Insurance Scheme, Art 223 |
| If you employ staff in Dubai, including in its free zones and special development zones, you must enrol your employees in health insurance, pay its cost, keep it valid for their whole period of service, and produce the policy when their residence permits are issued or renewed. | Law No. (11) of 2013 Concerning Health Insurance in the Emirate of Dubai, Art 10(1), (2), (3), (6)19 |
| If you are an employer or sponsor in Dubai and do not enrol your employees or sponsored persons in health insurance with at least the basic cover by the deadline, the fine is AED 500 for each month of delay, with part of a month counted as a full month, and charging the cost to a beneficiary brings a fine of AED 10,000 per beneficiary plus a refund. Fines double for a repeat within one year, up to AED 500,000. | Executive Council Resolution No. (7) of 2016 Approving Health Insurance Fees and Fines in the Emirate of Dubai, Schedule (2), rows 6 and 8 |
| If you employ expatriate residents in Abu Dhabi, you must provide health insurance for all your employees and their family members, including the employee's wife and three children under 18, unless your category is exempt under the law, and a non-UAE national's residence permit and employment depend on that enrolment. | Law No. (23) of 2005 Concerning Health Insurance in the Emirate of Abu Dhabi, Art 520 |
Free zone rules that name this work
| Rule | Zone | Where it comes from |
|---|---|---|
| Under the Dubai Airport Free Zone 2025 lease terms, if you or your contractors carry out works on the premises, you must hold contractor's all risks insurance and workmen's compensation insurance in the joint names of the landlord and your company, in line with statutory and regulatory requirements. | DAFZ | DAFZ Standard Leasing Terms and Conditions 2025, Section 2, clause 5.6.1(iii)10 |
| Under the Dubai Airport Free Zone 2025 lease terms for packages, the landlord insures the building, and if you carry out works you must hold contractor's all risks insurance and your own workmen's compensation insurance in the joint names of the Dubai Airport Free Zone Authority and your company, in line with statutory and regulatory requirements. | DAFZ | DAFZ Standard Leasing Terms and Conditions 2025, Section 6, clause 6.4.310 |
| Under the Dubai Healthcare City lease terms, if you or your agents or contractors carry out any work on the premises, you must hold contractor's all risks insurance and workmen's compensation insurance for a reasonable amount per occurrence to the satisfaction of the landlord and Dubai Healthcare City, in line with the authority's and the landlord's requirements. | Dubai Healthcare City | DHCC Lease Terms (Dubai Healthcare City FZ LLC as Landlord), cl 3.20.415 |
| In Dubai South Free Zone, sub-contractors and any other legal or beneficial owners of plots of land under development must hold valid contractor's all risks insurance policies and third party insurance policies. | Dubai South | Dubai South Free Zone Rules 2025, Second Edition, Rule 34.516 |
| Before you start building works in RAKEZ, you must insure the works, and the plant, materials and equipment used for them, for at least the full reinstatement cost of the works and the full replacement value of the plant, materials and equipment, plus an extra 10% of that insured amount, until the Operation Fitness Certificate for the works is issued. | RAKEZ | RAKEZ Operating Rules of 2023, Rule 15.1(b)(i)2 |
| In Sharjah Media City Free Zone, sub-developers, contractors and any other legal or beneficial holders of rights in land under development must hold valid contractor's all risks and third party insurance on terms the free zone authority accepts, and give the authority evidence of it on demand. | Shams | Shams Real Estate Regulations 2017, Part on Insurance17 |
| In Umm Al Quwain Free Trade Zone, sub-contractors and any other legal or beneficial owners of plots of land under development must hold valid contractor's all risks and third party insurance on terms the free zone authority accepts, and give the authority a copy on reasonable written notice. | Umm Al Quwain Free Trade Zone | Umm Al Quwain Free Trade Zone Rules and Regulations, First Edition, Reg 12.418 |
Key facts
- Dubai alteration or addition threshold1Smaller alteration or addition works fall outside Art 4(b) unless Dubai Municipality adds them.
- 300 square metres
- Dubai policy period, building works1Demolition and shoring run to the Certificate of Completion.
- Permit date to 1 year after completion
- Engineering, construction and energy premium, 20258All insurers. The class includes energy, so it is not construction alone.
- AED 4,284.1 million
What the evidence supports
- Contractor applying for a construction permit in Dubai1The policy goes in with the permit application and must come from a UAE-licensed insurer. It applies across Dubai, including special development zones and free zones such as DIFC.Last checked 4 Nov 2026
- RAKEZ Licensee starting Building Works2Construction, public and third party liability and workers' compensation insurance are due before the works begin.Last checked 4 Nov 2026
- RAKEZ Licensee holding an Operation Fitness Certificate2Contents insurance at full replacement value, for the length of the lease.Last checked 4 Nov 2026
- Buying cover for property in the UAE or liabilities arising there12Art 82 places this with licensed insurers and bars buying it from a foreign insurer outside the State or in a financial free zone. Art 82(4) gives exceptions, including cover not available in the State.Last checked 4 Nov 2026
- Construction contract terms5Law firm commentary lists all risks, professional indemnity, third party liability, workmen's compensation and decennial liability among covers available to contractors.Last checked 4 Nov 2026
- Tenant or its contractor working on DAFZ premises10The DAFZ 2025 standard lease asks for contractor's all risks and worker's compensation insurance in the joint names of landlord and tenant. One landlord's form.Last checked 4 Nov 2026
- RAKEZ lease insurance obligations2Rule 15.1(a) points to the lease, leasehold, sub-lease or musataha agreement.Last checked 4 Nov 2026
Nothing recorded here yet. That does not settle the question.
- Decennial liability insurance as a legal duty7One law firm page says the Insurance Authority signalled an intention to mandate it. Dubai's permit policy ends one year after completion, not ten.Last checked 4 Nov 2026
- An insurance term in Dubai Law No. (7) of 2025 on contracting7One law firm page says contractors must keep appropriate insurance as part of registration with Dubai Municipality. Ask Dubai Municipality.Last checked 4 Nov 2026
- A workmen's compensation policy on the mainland11One law firm page says it is mandatory under labour law for all employers. The Labour Law articles set employer liability and name no policy. Ask MOHRE whether Ministerial Resolution 657 of 2022 adds one.Last checked 4 Nov 2026
Risks in this sector
- Damage from the contractor's own workArt 819 of the Civil Transactions Law makes a contractor liable for damage or loss from its act or workmanship, except an unavoidable event.
- Ten-year structural liabilityFor buildings or fixed installations the engineer designed and the contractor built under the engineer's supervision, Art 821 makes both jointly liable for 10 years for total or partial collapse and for defects threatening structural integrity and safety, unless the parties intended a life shorter than 10 years. The period starts on delivery. Art 823 voids clauses that exempt or limit this liability. Art 824 bars a warranty claim 3 years after collapse or discovery.
- Damage to third parties during the worksDubai's permit policy and RAKEZ's public and third party liability cover both name this exposure.
- The period after taking overOne law firm's summary says that under FIDIC forms, contractors' all risks obligations generally cease on taking over and the employer insures the completed works. The same summary says defects themselves are typically excluded from that cover.
Sources
23
1Supreme Legislation Committee, Dubai Legal Portal, Executive Council Resolution No. (28) of 2022 Concerning the Insurance Policy Required for Licensing Construction Works in the Emirate of Dubai. Art 2, 4 to 10, 12. Last checked 4 Nov 2026. Source document: Executive Council Resolution No. (28) of 2022 Concerning the Insurance Policy Required for Licensing Construction Works in the Emirate of Dubai
2RAKEZ Authority, RAKEZ Operating Rules of 2023. Rule 15.1. Last checked 4 Nov 2026. Source document: RAKEZ Operating Rules of 2023
3Supreme Legislation Committee, Dubai Legal Portal, Decree No. (19) of 2025 Concerning Safety in Construction Work. Preamble. Last checked 4 Nov 2026. Source document: Decree No. (19) of 2025 Concerning Safety in Construction Work
4Supreme Legislation Committee, Dubai Legal Portal, Law No. (3) of 2026 Concerning the Quality and Safety of Buildings. Last checked 4 Nov 2026. Source document: Law No. (3) of 2026 Concerning the Quality and Safety of Buildings
5Fenwick Elliott LLP via Lexology, At a glance, construction contracts and insurance in United Arab Emirates. Last checked 4 Nov 2026. Source document: At a glance, construction contracts and insurance in United Arab Emirates
6UAE Federal Government, Federal Decree-Law No. (25) of 2025 (Civil Transactions Law). Art 819, 821, 823, 824. Effective 1 Jun 2026. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. (25) of 2025 (Civil Transactions Law)
7Kayrouz and Associates, Construction Insurance in the UAE, Policy Types and Clauses. Last checked 4 Nov 2026. Source document: Construction Insurance in the UAE, Policy Types and Clauses
8Central Bank of the UAE, Annual Statistical Report for the Insurance Sector of the UAE 2025. Tables 2A, 4A, 7, 12A, 14A, 24A. Last checked 4 Nov 2026. Source document: Annual Statistical Report for the Insurance Sector of the UAE 2025
9Federal Competitiveness and Statistics Centre, Insurance Indicators 2021 to 2024. Table 1.03.01. Last checked 4 Nov 2026. Source document: Insurance Indicators 2021 to 2024
10Dubai Airport Freezone, DAFZ Standard Leasing Terms and Conditions 2025. Section 2, clause 5.6.1. Last checked 4 Nov 2026. Source document: DAFZ Standard Leasing Terms and Conditions 2025
11UAE Federal Government, Federal Decree-Law No. (33) of 2021 Regulating Labour Relations. Art 37. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. (33) of 2021 Regulating Labour Relations
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 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
13Abu Dhabi Department of Economic Development, Economic Activities Dataset with Licensing Information (DL00-Activities.xlsx). Last checked 6 Oct 2026. Source document: Economic Activities Dataset with Licensing Information (DL00-Activities.xlsx)
14Ajman Department of Economic Development, License in Ajman (Activities), data.ajman.ae. Last checked 20 Mar 2024. Source document: License in Ajman (Activities), data.ajman.ae
15Dubai Healthcare City (dhcc.ae), DHCC Lease Terms (Dubai Healthcare City FZ LLC as Landlord). cl 3.20.4. Last checked 12 Nov 2026. Source document: DHCC Lease Terms (Dubai Healthcare City FZ LLC as Landlord)
16Dubai South, Dubai South Free Zone Rules 2025, Second Edition. Rule 34.5. Last checked 12 Nov 2026. Source document: Dubai South Free Zone Rules 2025, Second Edition
17Sharjah Media City Free Zone Authority (Shams), Shams Real Estate Regulations 2017. Part on Insurance. Last checked 12 Nov 2026. Source document: Shams Real Estate Regulations 2017
18Umm Al Quwain Free Trade Zone Authority, Umm Al Quwain Free Trade Zone Rules and Regulations, First Edition. Reg 12.4. Last checked 12 Nov 2026. Source document: Umm Al Quwain Free Trade Zone Rules and Regulations, First Edition
19isahd.ae, Dubai Law No. 11 of 2013, Articles 4 and 10, and Executive Council Resolution No. 7 of 2016, Schedule 2. Last checked 4 Nov 2026. Source document: Dubai Law No. 11 of 2013, Articles 4 and 10, and Executive Council Resolution No. 7 of 2016, Schedule 2
20doh.gov.ae, Abu Dhabi Law No. 23 of 2005, Articles 5 and 24, as compiled by the Department of Health to 2010. Last checked 4 Nov 2026. Source document: Abu Dhabi Law No. 23 of 2005, Articles 5 and 24, as compiled by the Department of Health to 2010
21u.ae, UAE Government portal page on getting health insurance, updated 8 September 2026. Ministerial Resolution 504 of 2026 is listed on the Ministry site.. Last checked 4 Nov 2026. Source document: UAE Government portal page on getting health insurance, updated 8 September 2026. Ministerial Resolution 504 of 2026 is listed on the Ministry site.
22UAE Federal Government (uaelegislation.gov.ae), Cabinet Resolution No. (18) of 2022 Concerning the Classification of Private Sector Establishments. Art 8(1). Last checked 4 Nov 2026. Source document: Cabinet Resolution No. (18) of 2022 Concerning the Classification of Private Sector Establishments
23UAE Federal Government, Cabinet Resolution No. (97) of 2022 Concerning the Mechanisms and Controls of Implementing the Unemployment Insurance Scheme. Art 2. Last checked 4 Nov 2026. Source document: Cabinet Resolution No. (97) of 2022 Concerning the Mechanisms and Controls of Implementing the Unemployment Insurance Scheme
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- Last review
- Next review due
- 2 Feb 2027
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- Published