Abu Dhabi : The Cabinet has issued a resolution setting minimum subscribed or paid-up capital of Dh100 million for establishing an insurance firm and Dh250 million for a re-insurance firm.
According to Fatima Ishaq Al Awadi, Deputy Director of the Insurance Authority, the resolution has stipulated that at least 75 per cent of the UAE-established company's capital should be owned by UAE or Gulf Cooperation Council nationals or corporate bodies.
She added that the resolution applies to all national and foreign insurance companies licensed to operate in the UAE, including companies that deal in Takaful insurance.
Insurance companies operating in free zones are exempt from the new rules.
Al Awadi indicated that under the resolution, all insurance companies are asked to work to rectify their status within three years from the resolution.
The new laws will go into force from the date of publication in the official gazette.
Insurance firms willing to reduce their capital may do so, provided that the reduced capital should not be less than the amount specified in the resolution.
ESCA approves standards
The board of directors of Emirates Securities and Commodities Authority (Esca) has approved the standards for financial umbrella of brokerages dealing with securities and commodities contracts.
The approval was given during a meeting chaired by Sultan Bin Saeed Al Mansouri, UAE Minister of Economy and Chairman of Esca, to adopt the best relevant practices and standards adopted by global markets.
Present at the meeting were Sultan Bin Nasser Al Suwaidi, Governor of the Central Bank, Abdullah Al Tarifi, , CEO of Esca and Sami Zain Al Qamzi, director of Dubai Department of Economic Development.
