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In effectCabinet Resolution

UAE Insurance LawCabinet Resolution No. (42) of 2009 Regarding Insurance Company Minimum Capital Regulations

UAE Cabinet Resolution·Cabinet Resolution No. (42) of 2009

قرار مجلس الوزراء رقم (42) لسنة 2009 بشأن نظام الحد الأدنى لرأس مال شركات التأمين

Authoritative Arabic version per the official UAE Legislation portal

Issued Date
December 27, 2009
Effective from
January 31, 2010
Articles
9
Last synced
Sep 21, 2026
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Plain-language summary

  • Sets minimum capital requirements that all insurance companies operating in UAE must maintain.
  • Applies to both local and foreign insurance firms licensed to do business in the UAE.
  • Establishes different capital thresholds based on the type of insurance business offered.
  • Requires companies to report and maintain compliance with capital rules regularly.
  • Protects policyholders by ensuring insurers have sufficient funds to pay claims.

Synced from the official UAE Legislation portal · Plain-language summary by LEXAI

Article-level text

Key Articles

9 articles

  1. 1

    Article 1

    Article (1) Definitions For the purposes of implementing the provisions of this Resolution, the following terms and expressions shall have the meanings assigned to each of them, unless the context requires otherwise: State : The United Arab Emirates. Law : Federal Law No. (6) of 2007 Regarding the Establishment of the Insurance Authority and the Regulation of its Operations. Companies Law : Federal Law No. (8) of 1984 Regarding Commercial Companies, as amended, or any law superseding it.

    -- 1 of 5 --

    Cabinet Resolution of 2009 Regarding Insurance Company Minimum Capital Regulations 2 Authority : The Insurance Authority. Board : The Board of Directors of the Authority. Company : An insurance company established in the State and a foreign insurance company licensed to conduct business in the State, either through a branch or an insurance agent, including companies conducting cooperative and Takaful insurance operations, as well as reinsurance companies.

  2. 2

    Article 2

    Article (2) Scope of Application of the Resolution The provisions of this Resolution shall apply to all Companies, with the exception of companies operating in the free zones in the State.

  3. 3

    Article 3

    Article (3) Minimum Capital of the Company The minimum subscribed and paid-up capital of the Company shall not be less than AED 100,000,000 (one hundred million UAE dirhams), provided that the minimum subscribed and paid-up capital of a reinsurance company shall not be less than AED 250,000,000 (two hundred and fifty million UAE dirhams).

  4. 4

    Article 4

    Article (4) a. At least (51%) of the capital of a Company established in the State shall be owned by natural persons who are nationals of the State or nationals of the Gulf Cooperation Council (GCC) countries, or by legal persons wholly owned by nationals of the State or nationals of the Gulf Cooperation Council (GCC) countries. b. The Board shall issue a resolution specifying the controls and conditions required for the admission of natural or legal persons as shareholders in the Company.

    -- 2 of 5 --

    Cabinet Resolution of 2009 Regarding Insurance Company Minimum Capital Regulations 3

  5. 5

    Article 5

    Article (5) Increase of the Company's Capital Subject to the provisions of the Companies Law, the capital of the Company may be increased by a decision of the Authority, based on a request submitted by the Company in this regard and in accordance with the form prepared by the Authority for this purpose.

  6. 6

    Article 6

    Article (6) Reduction of the Company's Capital Subject to the provisions of the Companies Law and Article (3) of this Resolution, the capital of the Company may be reduced by a decision of the Authority, based on a request submitted by the Company in this regard and in accordance with the form prepared by the Authority for this purpose. The request shall include a statement of the reasons justifying the Company's request for the reduction of its capital, and such reduction shall not prejudice the Company’s current or future obligations. The Board may approve or reject the reduction in accordance with the requirements of the public interest.

  7. 7

    Article 7

    Article (7) Final Provisions All existing Companies shall, upon the entry into force of the provisions of this Resolution, regularize their status in accordance with its provisions within a period of three years from the date of its entry into force.

  8. 8

    Article 8

    Article (8) The Board shall issue the necessary instructions and systems for the implementation of the provisions of this Resolution.

    -- 3 of 5 --

    Cabinet Resolution of 2009 Regarding Insurance Company Minimum Capital Regulations 4

  9. 9

    Article 9

    Article (9) This Resolution shall be published in the Official Gazette and shall enter into force as of the date of its publication. Mohammed bin Rashid Al Maktoum Prime Minister Issued by Us: On: 10 Muharram 1431 A.H. Corresponding to: 27 December 2009 A.D.

    -- 4 of 5 --

    Cabinet Resolution of 2009 Regarding Insurance Company Minimum Capital Regulations 5 Notice of Amendment of Designations Article Two of Federal Decree by Law No. (24) of 2020 stipulates the following: 1. The term "Authority" shall be replaced by "the Central Bank", wherever it appears in the aforementioned Federal Law No. (6) of 2007. 2. The term "the Minister" shall be replaced by " Chairman", wherever it appears in the aforementioned Federal Law No. (6) of 2007, and in the regulations, systems, and resolutions issued in implementation thereof. 3. The term "Director General" shall be replaced by" Governor of the Central Bank", wherever it appears in the aforementioned Federal Law No. (6) of 2007, and in the regulations, systems, and resolutions issued in implementation thereof.

    -- 5 of 5 --

Note: The Arabic text of this legislation is the authoritative version as per the official UAE Legislation portal.

Articles in this law(9)
  1. 1Article (1) Definitions For the purposes of implementing the provisions of this
  2. 2Article (2) Scope of Application of the Resolution The provisions of this Resolu
  3. 3Article (3) Minimum Capital of the Company The minimum subscribed and paid-up ca
  4. 4Article (4) a. At least (51%) of the capital of a Company established in the Sta
  5. 5Article (5) Increase of the Company's Capital Subject to the provisions of the C
  6. 6Article (6) Reduction of the Company's Capital Subject to the provisions of the
  7. 7Article (7) Final Provisions All existing Companies shall, upon the entry into f
  8. 8Article (8) The Board shall issue the necessary instructions and systems for the
  9. 9Article (9) This Resolution shall be published in the Official Gazette and shall
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