GCC insurers brace for geopolitical risks as UAE market powers regional growth

Despite geopolitical volatility, the GCC insurance sector is expanding, with the UAE leading the growth. For industrial procurement and logistics managers, this trend indicates a potential rise in premiums for cargo and transit insurance, especially for high-value machinery moving through regional trade routes. Rising claims costs and volatile oil prices are prompting insurers to tighten risk assessments for large-scale industrial assets.

Procurement professionals must account for these fluctuating insurance costs when calculating the landed cost of industrial equipment. It is advisable to review existing coverage for industrial facilities and warehouses against emerging risks. However, the robust growth of the UAE market also means more specialized industrial insurance products are becoming available, providing better protection for capital-intensive equipment and construction projects.