- Cyber insurance uptake is rising across the UAE as organisations respond to increasingly hostile threats
- A recent cybersecurity survey by Horizon3.ai found that 39 per cent of organisations in the UAE have comprehensive cyber insurance in place
- 18 per cent indicated they have no cyber insurance and no plans to obtain it
Cyber insurance uptake is rising across the UAE as organisations respond to increasingly hostile threats, though new research suggests many remain underprotected against the financial impact of cyberattacks.
A recent cybersecurity survey by Horizon3.ai found that 39 per cent of organisations in the UAE have comprehensive cyber insurance in place. A further 19 per cent reported partial coverage, while 24 per cent said they are considering taking out a policy.
However, 18 per cent indicated they have no cyber insurance and no plans to obtain it, or declined to respond, pointing to a continued gap between risk exposure and financial protection.
The findings come despite a high level of cyber incidents. Of the 66 per cent of respondents who experienced a cyberattack in the past two years, 41 per cent reported receiving ransom demands.
Businesses also cited data theft, operational disruption and legal consequences among the impacts of attacks.
The scale of the threat in the UAE is significant. The country faces more than 200,000 cyberattacks each day, according to the UAE Cyber Security Council, with many targeting critical infrastructure and strategic sectors.
These attacks are often launched from multiple countries and are designed to disrupt systems and compromise sensitive information.
As a result, cyber insurance is becoming an increasingly important part of risk management.
The UAE market is currently valued at around USD $83 million, with projections suggesting it could grow to approximately USD $350 million by 2034 as digital transformation accelerates and regulatory requirements tighten.
Legislation such as Federal Decree-Law No. 34 of 2021 has also pushed organisations to improve their cybersecurity measures and reporting practices. However, experts warn that both companies and insurers still face challenges in accurately assessing cyber risk.
“Cyber insurance is becoming an increasingly important component of enterprise risk management,” said Tamer Odeh, Middle East and Africa regional lead at Horizon3.ai. “But both organisations and insurers need better visibility into which weaknesses can actually be exploited in their IT environments.”
He added that organisations must move beyond compliance and focus on proving their resilience. “Organisations able to show clear visibility into their cyber risk exposure and prove the effectiveness of their security controls may ultimately be better positioned to secure more competitive cyber-insurance premiums and stronger policy coverage,” he said.
“Continuous testing is key for organisations to gain clear insight into what attack paths could affect their business and what their impact could be.”
As cyber threats evolve and become more sophisticated, strengthening both technical defences and financial safeguards is expected to remain a priority for organisations operating in the UAE.
