Costs related to the activity of insurance brokerage have also been increased due to changes in legislation whereby minimum capital has been raised from 1 to 3 million AED ( 0.27 to 0.8 million USD) for local brokers and up to 10 million AED (2.7 million USD) for foreign brokers. Levels of bank guarantees for local brokers have also been increased to 3 million AED (0.81 million USD) per company to which 1 million AED (0.27 million USD) per regional office shall be added.
As for foreign brokers, these sums have been raised respectively to 5 and 3 million AED (1.3 to 0.81 million USD). Alongside these measures, each broker is required to hold a professional liability policy amounting to 2 million AED, (0,54 million USD), compared to 1.5 million AED (0.4 million USD) in the past. Finally, the authorities require brokers to have a written mandate from the customer before starting any commercial procedures.