UAE: Strong growth prospects for insurance sector in 2026 and beyond
Source: Middle East Insurance Review | Feb 2026
The UAE insurance industry will witness further growth and development in 2026 and thereafter, Mr Khaled Mohammed Al Badi, Chairman of the Emirates Insurance Federation (EIF) and the Gulf Insurance Federation, has said.
In an interview with the newspaper Al Khaleej, he predicted that the industry’s growth would be supported by economic expansion and a significant influx of foreign capital. Aside from steady population increase, growth is being accelerated by digital transformation, heightened consumer awareness and a strategic pivot back to technical pricing standards from fierce price-cutting policy that prevailed in some of the previous years.
In response to a question about the most significant challenges facing local insurance companies in the UAE, Mr Al Badi stated that competition in the UAE insurance market is not limited to foreign companies, but is fierce among locally-incorporated insurers as well. This competition has sometimes taken an unfortunate turn, with some companies undercutting prices to attract customers, without considering the damage such moves inflict on the market and their own reputation.
Developments
A favourable development in the UAE market is that the ongoing convergence of health technology and insurance will lead to a greater and deeper transformation in the coming years as the UAE seeks to strengthen its healthcare system, he said.
In the overall insurance market, Mr Al Badi said, “The sector is witnessing rapid positive developments driven by digital transformation and customer-centric innovations that integrate the latest technologies. There are strong indications that 2026 and the years following will see a wider adoption of AI-powered customer service systems.”
He pointed out that insurers operating in the country are also increasingly focusing on sustainability, with the emergence of green insurance initiatives such as those for hybrid and electric vehicles. Many are moving towards offering innovative solutions that serve sustainable development goals, both environmental and social. M