The United Arab Emirates (UAE) has unveiled a revised Emiratisation strategy for the insurance sector, targeting an Emiratisation rate of 50% to 60% by 2030, contingent upon the size of the companies involved.

This initiative mandates the hiring of at least one Emirati annually in businesses with two to 19 employees, as well as establishing a localization requirement of 30% for occupations in companies with 20 or more employees.

For critical roles, the localization rate is set at 45%, and 30% for direct leadership positions such as CEOs and general managers.

This announcement was made by the UAE Minister of State for Financial Affairs, Mohamed Al Husaini, during a Federal National Council (FNC) session.

The minister's statement came in response to inquiries regarding the Central Bank’s role in enforcing Emiratisation compliance within the insurance industry.

As of June 1, 2025, Emiratis comprised 2,159 of a total workforce of 9,773 employees in this sector, translating to an Emiratisation rate of 22.09%, up from 13.34% in 2022 and 21.64% in 2024.

The 2022-2026 Emiratisation strategy aims to boost localization to 30% by 2026, with targeted annual growth of around 3%.

To ensure adherence to these regulations and prevent fraudulent practices, the Central Bank has established a Supervision and Inspection Unit with the authority to impose fines amounting to Dh60,000 on companies that fail to employ Emiratis, with penalties set at Dh20,000 per missing employee.

In addition to regulatory enhancements, the Central Bank has focused on human capital development within the sector.

Approximately 6,138 Emiratis have engaged in advanced training programs in collaboration with international educational institutions.

These training initiatives encompass disciplines such as accounting, finance, auditing, anti-money laundering, artificial intelligence, and data science.

In 2023, a memorandum of understanding was signed between the Ministry of Presidential Affairs and the Emirates Institute of Finance for the provision of 100 annual scholarships in actuarial science.

Currently, nine Emiratis are studying in the United States and Australia under this scholarship scheme.

Further partnerships are being established with national and international universities, including the Higher Colleges of Technology, Zayed University, and the American University in Dubai, to launch a bachelor’s degree program in actuarial science, anticipated to commence in September 2025. This program will receive financial support from insurance companies for the tuition of 25 to 30 students annually.

In a related development, the Central Bank of the UAE (CBUAE) has highlighted the impact of electric vehicles (EVs) on insurance pricing.

The CBUAE noted technical challenges associated with EVs, including high repair costs, limited availability of spare parts, and a shortage of service centers, all of which influence insurance rates.

Insurance companies may offer discounts of up to 25% from the minimum pricing threshold for electric and natural gas-powered vehicles based on their accident histories.

In its report to the FNC, the CBUAE explained that it monitors insurance pricing through a unified policy system, establishing minimum and maximum price limits to ensure transparency.

While acknowledging the challenges facing EV repair logistics, the CBUAE stated its commitment to ensure fair and sustainable coverage for all policyholders while supporting the transition to clean energy alternatives.

Furthermore, the UAE Insurance Federation revealed that some authorized EV dealerships have been declining repair services for vehicles purchased from third-party showrooms, a practice that can negatively impact insurers.

Concerns have been raised by industry leaders regarding this issue, which complicates claims processes for policyholders.

The Vice Chairman of the Supreme Technical Committee at the UAE Insurance Federation noted that customers often experience discrepancies in repair costs and service availability between authorized agencies and the showrooms where the vehicles were originally purchased.

This situation has led to increased complaints from policyholders about agency practices, highlighting a need for improved service continuity across the automotive sector.