DMCC Issues a Notification to Members Practicing Insurance Related Activities to Obtain the Necessary Approvals from the Central Bank of the UAE

On 1 July 2025, the Dubai Multi Commodities Centre (DMCC) issued a notification to members informing them that all companies engaging in certain “insurance related activities” would, order to continue their business legally, be required to obtain “the necessary approvals” from the Central Bank of the UAE (CBUAE) in (the Circular). The listed activities included:

• Insurance consultancy
• Insurance Brokers
• Reinsurance
• Insurance claims consultancy

The Circular applies to all current and future operations involving insurance services. Failure to comply would be considered a violation of federal regulatory requirements.

Why has the Circular been necessary? In recent years there has been some uncertainty regarding the activities which DMCC insurance entities could carry out. Certain entities have proceeded on the basis that they are licenced to carry out the activity specified on their trade licence, even though CBUAE (or DFSA/FSRA) authorisation had not been obtained.

The UAE Insurance Law 2023 and the Brokers Regulations 2024 make clear that any entity carrying out an insurance related activity in the UAE needs to be licenced by the CBUAE. The DIFC and ADGM are subject to different regulatory regimes and this note is not intended to apply to those entities on these platforms.

According to the Circular, in order to avoid potential sanctions or fines from the UAE Central Bank or suspension of the DMCC licence, relevant entities must:

1. Approach the Central Bank and initiate the application process for the No Objection Certificate (NOC) within 30 days from the date of this notice.
2. Submit proof of application to DMCC within the same 30-day period.
3. Ensure NOC approval by no later than 31st December 2025, or the relevant expiry date in the DMCC licence– whichever comes first.

The Circular concludes by urging relevant entities to begin the application process immediately to ensure full regulatory compliance.

These are early days, and it remains to be seen how the process will unfold. For instance, will DMCC applicants who have been practicing insurance activities to date be subject to the same licencing requirements as new applicants? Or will a more streamlined application process be applied for such entities.

If you have any questions on the above, please contact the authors below.