Restrictions on Insurance Investments
In 2015, the Abu Dhabi Insurance Authority introduced investment restrictions that limit the allocations insurance companies can make to various asset classes.
Insurers can invest a maximum of 30 per cent in domestic equity instruments, including both listed and unlisted companies in the United Arab Emirates (UAE). There is also a maximum of 10 per cent per single stock, fund or instrument.
Insurance companies can invest a maximum of 20 per cent of their funds in foreign equity investments, again with a maximum of 10 per cent exposure to a single counterparty.
They can allocate up to 100 per cent to government securities or instruments issued by the UAE, with a maximum of 25 per cent per security.
They can also invest in loans secured by life policies issued by the company to a maximum of 30 per cent and up to 30 per cent in secured loans and deposits with non-lenders.
Insurers can invest a maximum of 30 per cent of their assets in real estate, while they can allocate only 1 per cent to financial derivatives.
For the full regulations, please see: http://www.ia.gov.ae