In the United Arab Emirates, takaful is regulated by the Central Bank (CBUAE), which licenses ten local companies including SALAMA and Abu Dhabi National Takaful. Since 14 September 2026 it has required a wakala model with a participants' fund holding its own legal personality.
The Central Bank as sole insurance supervisor
The Central Bank of the UAE oversees the federation's insurers and devotes an Islamic Insurance page to the subject within its Islamic Finance section. There it publishes the official list of takaful companies and a sharia governance standard specific to them.
The 2022 takaful regulation and what it introduced
In force from 30 December 2022, the first CBUAE takaful regulation was based on Federal Law No. 6 of 2007 and Decree-Law No. 14 of 2018. It has since been repealed, but it laid the foundations of today's governance arrangements.
The Higher Shari'ah Authority and internal committees
That regulation required every operator to have an internal sharia supervisory committee of at least three members, under the Higher Shari'ah Authority, which sets national standards. Our page on an insurer's sharia board explains how these bodies work.
Qard hasan and zakat funds
The 2022 regulation also made several safeguards mandatory: separate accounts for participants, an interest-free loan from the operator if the fund ran a deficit, and a distinct zakat fund. Together they formed protections specific to the Emirati model.
September 2026: wakala becomes the rule
According to Pinsent Masons, the new regulation in force since 14 September 2026 makes the wakala model, with the operator paid as agent compulsory. The combined wakala and mudaraba structure, previously permitted, is no longer accepted by the regulator.
A participants' fund with legal personality
The 2026 text gives the takaful fund its own legal personality, segregated from the operating company. Policyholders' contributions are thus legally ring-fenced from shareholders' assets, which strengthens the protection of participants if the operator runs into difficulty.
Conventional insurers allowed to open takaful windows
Conventional insurers may now open a takaful window under four conditions: CBUAE approval, an internal sharia committee, a dedicated manager and separate accounts. Customers should therefore check whether they are dealing with a takaful company or with a window.
Ten takaful companies on the official list
The CBUAE lists ten companies: SALAMA, ASCANA Insurance (Takaful), Takaful Emarat, Abu Dhabi National Takaful, YAS Takaful, Orient Takaful, Aman (Dubai Islamic Insurance & Reinsurance), Methaq Takaful, Watania Takaful General and Watania Takaful Family. Any takaful offer comes from one of them or a window.
SALAMA and Abu Dhabi National Takaful, two listed pioneers
SALAMA, founded in 1979 and listed on the DFM, reports paid-up capital of AED 939 million. Abu Dhabi National Takaful, established in 2003 and listed on ADX under the ticker TKFL, was the first takaful operator licensed in Abu Dhabi.
A sanction that underlines solvency requirements
On 2 October 2024, the CBUAE barred an unnamed takaful insurer from issuing or renewing motor and health policies because it failed to meet the minimum capital set by Article 33 of Federal Decree-Law No. 48 of 2023.
A stable but minority market share
According to Badri Management Consultancy, listed takaful insurers accounted for 9 percent of the business of listed insurers in the first half of 2025, down from 11 percent a year earlier. Unlike Saudi Arabia, the Emirati market remains dominated by conventional insurance.
Digital distribution and a regional comparison
In July 2025, SALAMA partnered with Policybazaar.ae to sell its Life Takaful products online. For local detail see takaful in Dubai, and for the Saudi neighbour see the Saudi cooperative model.
Taking out takaful cover in the UAE, step by step
- Check that the company appears on the CBUAE list of ten takaful companies or is an approved takaful window.
- Ask for the names of the internal sharia committee members and the reference to Higher Shari'ah Authority standards.
- Read the wakala fee rate in the contract, since wakala has been the only permitted model since September 2026.
- Compare the surplus distribution rules and the qard hasan policy in case the fund falls into deficit.
- Review the exclusions, particularly for health and motor cover, before signing.
- Report any claim promptly and keep police reports, medical invoices and written exchanges with the operator.
Breakdown of an Emirati takaful contribution
| Component | Purpose | What makes it vary |
|---|---|---|
| Tabarru contribution | Funds the participants' pool, which now has its own legal personality | Risk profile, chosen cover, vehicle or state of health |
| Wakala fee | Remunerates the operator acting as agent | Company fee scale and product type |
| Qard hasan | Interest-free loan from the operator if the fund is in deficit | Fund claims experience, repaid from future surpluses |
| Surplus | Excess possibly returned to participants | Annual underwriting result and contract terms |
| Deductible | Share of the loss borne by the insured | Level chosen when the policy is taken out |
Documents requested by a takaful operator in the UAE
- Emirates ID card and passport with residence visa
- Proof of address in the UAE, such as a registered tenancy contract
- Vehicle registration card (mulkiya) and UAE driving licence
- Title deed or lease for home insurance
- Medical questionnaire for a Life Takaful or health policy
- Islamic financing contract (murabaha, ijara) where cover is linked to a loan
Frequent missteps in the Emirates
- Assuming that a takaful product bought before September 2026 follows the new rules without rereading the contract and any endorsements.
- Confusing a takaful window run by a conventional insurer with one of the ten takaful companies listed by the CBUAE.
- Choosing an operator on price alone without checking its strength, even though the CBUAE has already suspended a takaful insurer for insufficient capital.
- Believing a surplus will necessarily be paid out, when distribution depends on the fund's result and the written terms.
- Buying online through a comparison site without confirming that the underlying operator is licensed by the CBUAE.
Key questions on Emirati Islamic insurance
Which takaful model is permitted in the UAE since 2026?
The new CBUAE regulation, in force since 14 September 2026, mandates the wakala model. The operator acts as an agent paid by a fee, while the legally separate participants' fund bears the claims.
How many takaful companies are licensed in the UAE?
The Central Bank's official list contains ten local companies, from SALAMA to Watania Takaful Family. Conventional insurers may also offer a takaful window after CBUAE approval, with a sharia committee and separate accounts.
What happens if the participants' fund is in deficit?
The 2022 regulation already provided for qard hasan, meaning an interest-free loan granted by the operator to the fund. That loan is later repaid from future surpluses, with no return for the shareholder.
Does takaful hold a majority of the Emirati market?
No. Listed takaful insurers represented about 9 percent of the business of listed insurers in the first half of 2025, according to Badri Management Consultancy. The UAE market remains mostly conventional, unlike the Saudi market.