Logistics and freight insurance rules in the UAE
Rules attach to an international land route, a vehicle or a vessel. We found no duty on cargo owners to insure, and the Maritime Law says a freight forwarder has none without a special agreement.
Which insurance rules apply to freight, cargo handling and logistics?
These rules name this kind of business or the work it does.
- Dubai. Your vessel must be insured to be licensed in Dubai, and the policy must stay valid for the licence term plus 30 days. No licence is issued or renewed if the policy has any term that limits or excludes the full civil liability of the insured and the insurer for death, bodily injury or material damage the vessel may cause.3
- Dubai. If you own, operate or act as maritime agent for a vessel used for commercial maritime work in Dubai waters under a Dubai Maritime Authority permit, such as salvage, diving or excavation, you must provide appropriate third party liability insurance covering damage that may result from using the vessel for that work.4
- Federal. If you run international land transport, your operations must be insured from the start of each trip to its end.1
- Federal. Your vehicle must be insured with an insurance company licensed in the UAE before it can be licensed or its licence renewed, under Federal Decree-Law No. 14 of 2024 on Traffic Regulation.5
- Dubai. To hold a customs broker licence in Dubai, you must submit a bank guarantee of AED 50,000 in favour of Dubai Customs to cover contingent liabilities it may sustain, and it is refunded only one calendar year after you stop renewing or leave the profession.11
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.13
- 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.14
- 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.15
- 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.16
- 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.17
Each emirate page sets out the rule and the authority. Dubai and Abu Dhabi.
How many freight, cargo handling and logistics are licensed?
| Emirate | Licences | Counted from | As of |
|---|---|---|---|
| Abu Dhabi | 3,609 | Abu Dhabi Department of Economic Development open data | 6 October 2026 |
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 |
|---|---|---|
| 5229 | Other transportation support activities | 1,080 |
| 5224 | Cargo handling | 1,465 |
| 5221 | Service activities incidental to land transportation | 1,514 |
| 5222 | Service activities incidental to water transportation | 367 |
Which types of cover should freight, cargo handling and logistics read about?
How much insurance is written for this kind of work?
The Central Bank reports marine and aviation for all customers, not for freight, cargo handling and logistics alone.
Do free zones set their own insurance rules for this work?
| Free zone | What the rule says |
|---|---|
| RAK Maritime City | Under the RAK Ports Marine Guidelines, every vessel entering RAK Ports must have proper insurance that sufficiently covers any third party liability, including liability from dangerous goods, oil spills and spills of chemicals or other toxic or hazardous materials, with written proof on board. |
| RAK Maritime City | Under the RAK Ports Marine Guidelines, a vessel entering RAK Ports must also have valid liability insurance for seafarers. |
Art 19 names international land transport and no other haulage
Federal Law No. (9) of 2011 defines land transport as international carriage, or carriage between the emirates, of people or goods for a fee. Art 19 then names international operations only. It says the executive bylaw sets the terms of the insurance. The law defines an insurance policy as a contract between carrier and insurer that compensates the passenger for death or injury, or compensates other damage from the carriage.1 The portal shows 2 amendments.
Whether a forwarder insures cargo depends on the agreement
Art 202(7) of the Maritime Law says a freight forwarder has no obligation to insure the cargo it undertakes to transport, except by special agreement with the consignor. The same paragraph lets the forwarder declare the shipment under a subscription policy, unless the consignor gives written instructions that a separate policy is needed.2
Its status also turns on the contract. Under Art 199, a forwarder that undertakes to provide the carriage counts as a carrier contracting with the consignor. Where the contract of carriage is made in the consignor’s name and for its account, the forwarder counts as the consignor’s representative.
Vessels carrying goods fall under Dubai’s licensing bylaw
The bylaw defines a vessel as any vessel operated on Dubai’s waters to transport passengers or goods for personal, commercial, sports or tourism purposes. Art 20 leaves the “relevant insurance” to the authority. Art 22 refuses a licence or renewal if the policy limits or excludes full civil liability for death, bodily injury or material damage caused by the vessel.3 Vessels registered and licensed outside Dubai and authorised to enter are exempt from the licensing provisions, under Art 2.
The commercial maritime rule attaches to the work on the vessel, not to a logistics licence.4 The vehicle rule attaches to each vehicle.5 A lease is a separate document again: clause 21.1 of the filed KIZAD lease sets its tenant’s cover.6
Trade rose and marine premium fell in 2025
| Measure | 2025 | Change on 2024 | Source |
|---|---|---|---|
| Non-oil foreign trade | About AED 3.8 trillion | +27% | Ministry of Foreign Trade |
| Marine and aviation gross written premium | AED 2.26 billion | -2.5% | CBUAE 2025 report |
Sources
Ministry of Foreign Trade data, checked 4 November 2026.7
Dividing one number by the other gives no penetration rate. The class includes aviation and hull. The trade total includes gold.
| Measure | Value |
|---|---|
| Gross written premium, 2024 | AED 2,317.6 million |
| Paid claims | AED 1,221.0 million |
| Incurred claims | AED 1,053.7 million |
| Gross loss ratio | 51.8% paid, 44.7% incurred |
| Retention | 24.0% |
| Policies | 252,826 |
The CBUAE report says marine insurance claims paid rose 34.7% in 2025.8
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)16 |
| 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)16 |
| 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 217 |
| 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)13 |
| 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 514 |
Free zone rules that name this work
| Rule | Zone | Where it comes from |
|---|---|---|
| Under the RAK Ports Marine Guidelines, every vessel entering RAK Ports must have proper insurance that sufficiently covers any third party liability, including liability from dangerous goods, oil spills and spills of chemicals or other toxic or hazardous materials, with written proof on board. | RAK Maritime City | RAK Ports Marine Guidelines, issue 21-11-2019, Vessel Insurance, para 24, 2512 |
| Under the RAK Ports Marine Guidelines, a vessel entering RAK Ports must also have valid liability insurance for seafarers. | RAK Maritime City | RAK Ports Marine Guidelines, issue 21-11-2019, Vessel Insurance, para 2612 |
Key facts
- Marine and aviation premium, 20258All insurers. Down 2.5% on 2024. Includes aviation and hull.
- AED 2,258.6 million
- UAE non-oil foreign trade, 20257Up 27% on 2024. Data period 2025, checked 4 November 2026.
- About AED 3.8 trillion
- Carrier liability cap for sea cargo2Whichever is higher. A liability cap, not an insured value.
- 835 SDR per package or 2.5 SDR per kilogram
What the evidence supports
- Running international land transport1Federal Law No. (9) of 2011 Art 19 says these operations are covered by insurance from the start of the trip to its end.Last checked 4 Nov 2026
- Licensing or renewing a vehicle5The vehicle must be insured by a company licensed in the State. The trigger is the vehicle, not the type of business.Last checked 4 Nov 2026
- Licensing a vessel in Dubai3Covers vessels carrying passengers or goods. The policy must run for the licence term plus 30 days.Last checked 4 Nov 2026
- Commercial maritime work on a vessel in Dubai waters4The owner, operator or maritime agent provides third party liability insurance. Listed work includes towing and carrying sand, rocks, debris and construction materials that may cause marine pollution. "Appropriate" is not defined and no limit is stated.Last checked 4 Nov 2026
- Buying cover for property in the UAE or liabilities arising there9Art 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
- Warehouse or plot tenant at KIZAD Logistics Park6One lease filed with the US SEC has the tenant insure the premises, contents, civil liability, business interruption where available for two years, workers' compensation and employer's liability. One contract.Last checked 4 Nov 2026
- Marine cargo policy2Art 325 of the Maritime Law allows a single voyage policy or a subscription policy for several voyages or a period. Art 326(2) brings complementary land, sea or air transport under marine insurance rules unless otherwise agreed.Last checked 4 Nov 2026
- A duty to insure cargo2We found no duty on cargo owners. Art 202(7) says a forwarder has none without a special agreement with the consignor.Last checked 4 Nov 2026
- Domestic haulage and transport licences from RTA or ITC1Art 19 names international operations. Ask the licensing authority.Last checked 4 Nov 2026
- Cover required by letters of credit or CIF terms9Ask the Central Bank whether Art 82(3) reaches cargo cover an overseas seller buys on CIF terms.Last checked 4 Nov 2026
Risks in this sector
- Loss of or damage to cargo a forwarder carriesArt 202(3) of the Maritime Law makes the forwarder liable, under Art 175 to 178.
- Damage to cargo stacked in a forwarder's containersArt 202(4) makes the forwarder liable where the cause is the poor condition of the container or its unsuitability for the shipment.
- Sea carrier limitArt 177 caps carrier liability for cargo at 835 Special Drawing Rights per package or unit or 2.5 per kilogram, whichever is higher.
Sources
17
1UAE Federal Government, Federal Law No. (9) of 2011 regarding the Land Transportation. Art 1, 19. Effective 6 Jul 2011. Last checked 4 Nov 2026. Source document: Federal Law No. (9) of 2011 regarding the Land Transportation
2UAE Federal Government, Federal Decree-Law No. (43) of 2023 Concerning the Maritime Law. Art 177, 199, 202, 325, 326. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. (43) of 2023 Concerning the Maritime Law
3Supreme Legislation Committee, Dubai Legal Portal, Executive Council Resolution No. (11) of 2013 Issuing the Implementing Bylaw of Law No. (11) of 2010 Concerning the Licensing of Vessels in the Emirate of Dubai. Art 1, 20 to 22. Last checked 4 Nov 2026. Source document: Executive Council Resolution No. (11) of 2013 Issuing the Implementing Bylaw of Law No. (11) of 2010 Concerning the Licensing of Vessels in the Emirate of Dubai
4Dubai Maritime Authority, via Dubai Legal Portal, Administrative Resolution No. (1) of 2025 Regulating the Conduct of Commercial Maritime Activities on Vessels in the Emirate of Dubai. Art 1, 5(7). Last checked 4 Nov 2026. Source document: Administrative Resolution No. (1) of 2025 Regulating the Conduct of Commercial Maritime Activities on Vessels in the Emirate of Dubai
5UAE 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
6Abu Dhabi Ports Company PJSC, via US SEC EDGAR, Warehouse and Plot Lease, KIZAD Logistics Park. Clause 21.1. Last checked 4 Nov 2026. Source document: Warehouse and Plot Lease, KIZAD Logistics Park
7Ministry of Foreign Trade, Trade Data. Last checked 4 Nov 2026. Source document: Trade Data
8Central Bank of the UAE, Annual Statistical Report for the Insurance Sector of the UAE 2025. Section 3.3, Tables 2A, 4A, 7, 12A, 14A. Last checked 4 Nov 2026. Source document: Annual Statistical Report for the Insurance Sector of the UAE 2025
9Central 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
10Abu 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)
11dubaicustoms.gov.ae, Dubai Customs Policy DCP (17) Customs Broker Policy. Art 2(2). Last checked 12 Nov 2026. Source document: Dubai Customs Policy DCP (17) Customs Broker Policy
12RAK Ports (Government of Ras Al Khaimah), RAK Ports Marine Guidelines, issue 21-11-2019. Vessel Insurance, para 24, 25. Last checked 12 Nov 2026. Source document: RAK Ports Marine Guidelines, issue 21-11-2019
13isahd.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
14doh.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
15u.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.
16UAE 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
17UAE 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
- Owner
- Quotes.ae research team
- Last review
- Next review due
- 2 Feb 2027
- Status
- Published