UAE insurance market set to grow $3.8bln by 2028, led by non-life segment

UAE insurance market set to grow $3.8bln by 2028, led by non-life segment

The UAE insurance market is projected to grow by Dh14 billion by 2028, driven by the non-life segment, according to a new study published on Wednesday. Released by investment banking advisory firm Alpen Capital, the study said the UAE insurance sector will expand at a compound annual growth rate (CAGR) of 4.9 per cent from $14.1 billion (Dh51.7 billion) in 2023 to $17.9 billion (Dh65.7 billion) in 2028. The study projected that the non-life segment is estimated to grow at a CAGR of 5.2 per cent to $14.4 billion in 2028. “This growth is expected to be driven by improving macro-economic conditions, expansion of mandatory health insurance cover to the Northern Emirates coupled with the development of large-scale infrastructure projects,” Alpen Capital analysts said. Over the next two years, the UAE has an infrastructure project pipeline worth $29 billion, which is expected to amount to $199 billion over the next five years. Additionally, a large pipeline of transportation and road infrastructure projects, such as the $11 billion Etihad Rail, $5.9 billion hyperloop project, and $2.7 billion Sheikh Zayed double-deck road project is expected to boost economic growth, it added. The implementation of the Unemployment Insurance Scheme in the UAE, with