Market Overview

The UAE cyber insurance market size was valued at USD 83.74 Million in 2025 and is projected to reach USD 350.24 Million by 2034, growing at a compound annual growth rate of 17.23% from 2026-2034. This expansion is driven by the increasing frequency of cyber threats, stricter data protection regulations, and rising investments in digital infrastructure. Demand for customized risk coverage is growing across key sectors such as finance, healthcare, and technology.

How AI is Reshaping the Future of UAE Cyber Insurance Market

• AI enhances real-time threat intelligence, allowing insurers to improve risk models and underwriting processes accurately.
• AI-driven assessments help businesses of all sizes tailor cyber insurance policies to their specific risk profiles, fostering personalized coverage.
• Government initiatives focusing on AI and smart city projects increase enterprise exposure to cyber risks, expanding insurance demand.
• AI technologies are integrated into incident response planning and post-breach recovery support, offering advanced service-driven insurance products.
• Collaborations between insurers and cybersecurity firms leverage AI for monitoring, forensics, and proactive cyber threat management.
• Companies tested with AI insights are increasingly embedding cyber insurance into business continuity strategies, enhancing operational resilience.

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Market Growth Factors

Increased targeted cyber attacks against businesses in the UAE, including ransomware, data breach, business email compromise and phishing attacks have led to a growing demand for specialized cyber risk coverage products in the public and private sectors. In addition, information assurance and other regulations are leading to more stringent requirements on incident response and cybersecurity in the UAE, driving demand and market penetration. Cloud computing and digital payment systems have increased the attack surface of organizations. The entry of startups and SMEs, often uninsured or under-insured, has increased the market. The increased demand for data loss, business interruption and other legal liability coverage has led to dedicated cyber insurers creating specialized insurance products for particular industries and sectors.

The UAE cyber insurance market has been further encouraged by national strategies for artificial intelligence, smart cities and digital banking, all of which stress technology adoption and create exposure to new cyber risks. Broadening investment in digital infrastructure across external and internal domains also supports cover for many different forms of technology such as IoT (Internet of Things) networks, remote workers, and dynamic systems. Policy modularity is increasing in response to requests for cover that matches the risk, and because of pressure from cyber insurance that is bundled into vendor contracts, mergers, and client compliance schemes. Machine learning and other artificial intelligence-based techniques can further improve risk models and enable insurers to manage risk more interactively, for example, through real-time threat analysis or adjusting their products to include new or emerging risks.

The UAE's Vision 2031 was one of the major drivers behind the cyber insurance market growth, as it wants to create a futuristic digital economy. Cyber insurance has become a key component of operational resilience, as corporates in the UAE have started including cyber insurance in their BCP frameworks. There is growing demand by brokers and insurers for service-based, interactive responses to breaches, such as incident response planning and post-breach recovery. In many local markets, insurers bundle products from cyber security companies with their products. The cyber insurance market in the UAE is rapidly evolving as a result of increasing regulation, digital transformation initiatives, greater consumer sophistication and more innovative regional insurers.

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Market Segmentation

Component Insights:

• Solution
• Services

Insurance Type Insights:

• Packaged
• Stand-alone

Organization Size Insights:

• Small and Medium Enterprises
• Large Enterprises

End-Use Industry Insights:

• BFSI
• Healthcare
• IT and Telecom
• Retail
• Others

Regional Insights:

• Dubai
• Abu Dhabi
• Sharjah
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent Development & News

• February 2025: UAE's National Cyber Security Council partnered with leading international insurers to launch a specialized cyber insurance framework for critical infrastructure, offering coverage up to AED 500 million for sectors like energy and transportation to mitigate rising digital threats amid rapid regional digitization.
• January 2025: Oman Insurance rebranded to Sukoon Insurance, enhancing its portfolio with modernized cyber risk covers integrated into property and casualty policies, aligning with UAE's growing demand for comprehensive digital protection as cyber premiums surge by over 20% annually.
• October 2024: The UAE Cybersecurity Council initiated the National Campaign for Cybersecurity Awareness, boosting adoption of cyber insurance products among businesses and government entities, with projections indicating a 25.6% CAGR for the market through 2028 driven by ransomware incidents affecting 73% of organizations.
• May 2024: CyberHive introduced advanced threat protection modules tailored for UAE networks, expanding cyber insurance offerings for BFSI and telecom sectors and reflecting heightened insurer focus on AI-enhanced policies amid a 3.6% annual growth in overall cybersecurity spending.

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