The report says that by 2012 the non-life insurance industry should be worth AED12.28bn ($3.3bn), compared to AED8.5bn in 2007, while life insurance will hit AED2.11bn by 2012.

The report says that while economic growth will continue to tempt foreign companies into the UAE, inflation will be a risk, along with the underdeveloped legal framework for the industry. It added that the level of openness to foreign companies is not high.

The report adds that it expects non-life insurance premiums to rise by 20 per cent by 2012.