UAE Law and Practice Contributed by: Raghad Hammad and Huda Al Zein, BLK Partners
Promotion of ILS and Alternative Risk Transfer (ADGM) The ADGM has taken a leading role in promoting inno- vative risk transfer structures. • ILS Framework: In late 2025, the FSRA launched consultations to develop a dedicated framework for ILS and “synthetic sidecars”. • Reinsurance Innovation: The move aims to attract global capital markets by allowing insur- ers to transfer risk to investors through catastro- phe bonds and other capital market instruments directly from Abu Dhabi.
ance across all seven emirates. Previously mandatory only in Dubai and Abu Dhabi, health insurance is now a prerequisite for issuing or renewing residency per- mits in the Northern Emirates (Sharjah, Ajman, RAK, etc). New Insolvency and Resolution Framework The 2025 Law introduced an international-standard Resolution Authority established by the CBUAE, spe- cifically for financial institutions and insurers. The CBUAE can now intervene well before an insurer fails, using tools such as bridge institutions, asset transfers and “bail-ins” to protect policyholders. Additionally, insurance claims are afforded high priority in the event of an insurer’s insolvency, ensuring policyholders are protected ahead of general creditors.
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