On the occasion of the international show on property investment, Cityscape, held in Dubai from October 6 to 9, 2008, business leaders have underscored the role of insurance in the promotion of this sector of activities.
The estate property sector is witnessing an unprecedented boom in the United Arab Emirates, where new projects worth more than 100 billion USD are announced. According to the Insurance Authority (TIA), the premium amounts generated by the sector have risen from 8.7 billion AED (2.4 billion USD) in 2006 to 11.9 billion AED (3.2 billion USD) in 2007, that is, a 38% increase.
Within this mood of overheated markets, operators are resorting more and more to a product called “Owner Controlled Insurance Programs” which provides a large insurance cover to the entire stakeholders involved (owners, contractors and subcontractors) against delay risks and faulty project workmanship.
