Cyber Insurance: Risks and trends for UAE companies
Cybersecurity attacks are becoming more and more sophisticated. As digitization initiatives continue to expand, exposure to cyber-attacks increases with it. Businesses must ensure that their data, operations, and systems are protected from these threats.
Cybersecurity continues to evolve as well, and what worked a few years ago might no longer work today. In this Pacific Prime Dubai article, we take a closer look at cyber insurance, including risks and trends for UAE companies.
Why UAE Companies Are Investing in Cybersecurity
The rapid growth of digital technologies has been the key factor in driving the cybersecurity market in the UAE. Since more confidential information is being stored digitally, organizations need cybersecurity safeguards to reduce risk.
The UAE faced 23 million malware and 1.1 million phishing attacks in just the first three months of 2019. These alarming figures highlight the growing cyber threats in the region and the urgent need for stronger digital protection across all sectors.
As a result, cybersecurity spending has surged. The Middle East and Africa’s cybersecurity market is expected to reach USD $66.5 billion by 2025, reflecting increased awareness and investment in advanced defense systems to counter rising cyber threats.
Saudi Arabia, in particular, is looking to enhance its cybersecurity capabilities by getting its government agencies to legislate and enforce cybersecurity. The country is anticipated to receive sizable investments to enhance its cybersecurity framework.
Cyber Risk Management for UAE Companies in 2025
In 2025, the DFSA continues to boost cyber resilience in the DIFC. The Cyber Threat Intelligence Platform (CTIP), active since 2020, enables real-time threat sharing between regulated and non-regulated firms across the UAE and with top cybersecurity partners.
CTIP has evolved into a key tool for early warnings and response. It reflects the UAE’s push for cooperation between firms and regulators to defend against rising cyber threats, in line with global cybersecurity trends and local business risks.
The DFSA’s 2025–2026 Business Plan highlights cyber resilience as a core focus. The authority aims to strengthen risk-based regulation, support innovation, and ensure firms are well-equipped to handle modern cyber threats and financial crime.
Global threats are growing, with cybercrime costs expected to reach USD 10.5 trillion in 2025. As the UAE expands its digital infrastructure, efforts like CTIP and strong DFSA policies help companies stay secure and resilient amid evolving risks.
Why Cybersecurity is a Serious Issue for Regulated Firms
At worst, cyber attacks can destroy a business or lead it to bankruptcy. Even though it’s common to view companies that have been cyber-attacked as victims, cyber attacks on regulated firms do more than just damage their reputation.
If there are failures, the regulator may call for an investigation or enforcement action. Additionally, firms may be required to notify regulatory bodies like the DIFC and DFSA Commission for Data Protection if a cyber breach occurs.
The introduction of the CTIP scheme offers DFSA-regulated firms a key chance to assess their operational resilience and readiness to face cyberattacks. It encourages firms to examine their current systems and identify any vulnerabilities that could pose serious risks.
To stay protected, firms must have strong controls and systems in place to manage potential threats. Failing to build operational resilience can lead to significant disruptions and reputational damage, especially in today’s rapidly evolving cyber threat landscape.
Best Practices to Raise an Organization’s Cyber Safety
Operational resilience in cyber risk starts at the top, with board-level commitment and proper allocation of human and financial resources. Leadership plays a vital role in setting the tone and ensuring that cybersecurity is a core part of the firm’s strategic priorities.
Boards must also promote a culture that values cyber resilience throughout the organization. DFSA-regulated firms are strongly encouraged to address key cyber risk areas without delay to protect operations and maintain regulatory compliance.
Board Buy-in
- Has the board allocated enough financial and human resources committed to cyber risk?
- Is cyber risk a common topic of discussion at senior management or board meetings?
- Is a committee or senior manager responsible for managing cyber risk?
Resources
- Is the firm receiving expert guidance?
- Does the firm’s IT function have sufficient resources or access to expert advice?
Evaluating Vulnerabilities and Security Risks
- Has an external audit of cyber-attack vulnerabilities been performed or have its systems been stress tested?
- Are the firm’s software and hardware regularly updated?
- Does the firm have cyber insurance or an insurance policy that covers cyber risk?
Training
- Have all staff been properly trained to identify and mitigate cyber risks?
- Does the training match their role/level in the company?
- Does the firm regularly raise awareness and inform employees of threats or risks?
Readiness for the Worst-case Scenario
To prepare for the worst, it’s important to know whether the firm has the following:
- A detailed cybersecurity plan that outlines the response to a cyber attack
- Performed a cyber attack simulation
- A business continuity (BC) and disaster recovery (DR) plan to help business recovery as in the shortest amount of time
- A secure backup of all its data that is regularly updated
- An emergency contact list for experts such as legal advice and IT forensic service providers
- Cyber insurance or an insurance plan that covers cyber risks
UAE Cyber Risk Trends for 2025
Cyber threats in the UAE have become more advanced in 2025. Financial firms, cloud services, and telecom operators remain top targets. Ransomware, AI-powered attacks, and phishing scams are growing threats, prompting stricter defenses and incident reporting.
Ransomware attacks in the UAE’s finance sector rose from 27 in 2023 to 34 in 2024. Threat actors like APT39 continue cyber espionage campaigns in the region. Many smaller attacks remain unreported, obscuring the full scale of cyber risk exposure.
The most common cyber threats in the UAE this year include:
- AI-driven phishing and malware
- Cloud misconfigurations
- Business email compromise (BEC)
- Ransomware-as-a-service (RaaS)
- Machine identity exploitation
Cybercrime is becoming faster and more efficient thanks to AI and automation. Supply chains are also more exposed, especially as firms adopt third-party services without robust vetting or controls.
Global and regional trends impacting the UAE in 2025 include:
- Technology improving cybercrime capabilities
- Remote work creating new access points
- A rise in cyber regulations and audits
- Growing awareness of digital risk
- Demand surge in cyber insurance
The UAE’s National Cybersecurity Strategy now focuses on AI-powered defenses, improved cloud security, and better threat-sharing networks. Public-private initiatives like Cyber Pulse and the Quantum Innovation Summit support this shift.
The UAE cyber insurance market is booming. It’s forecasted to grow at a CAGR of 25.6% through 2028. More SMEs are adopting standalone cyber policies to safeguard against data loss, downtime, and regulatory penalties.
Cyber insurance in 2025 typically covers:
- Ransomware recovery and crypto payments
- Data breach response and legal fees
- Regulatory fines and business interruption
- Reputation repair and customer notification
With global cybercrime costs expected to hit USD 10.5 trillion this year, UAE companies must act now. Whether through insurance, cloud hardening, or policy reviews, cyber resilience is no longer optional—it’s essential.
Cyber Risk & Corporate Insurance Protection in the UAE
In a rapidly evolving threat landscape, businesses in the UAE must go beyond cybersecurity and address wider organizational risks. Pacific Prime helps firms take a holistic approach by combining cyber protection with full-spectrum corporate insurance solutions.
With over two decades of global experience, Pacific Prime has earned the trust of clients in sectors like oil & gas, retail, education, professional services, and more. Our role goes beyond that of a traditional broker—we serve as long-term risk advisors for companies in the UAE and across the globe.
We support businesses with risk identification, policy benchmarking, and tailored insurance solutions that evolve with your business needs. Our clients benefit from local service with global reach, thanks to our membership in global broker networks like WBN.
Industry-Specific Insurance Expertise
Pacific Prime has deep experience serving businesses in:
- Professional Services
- Oil & Gas
- Pharmaceutical
- Food & Beverage
- Legal and Compliance
- Retail & E-Commerce
- International Schools
- Mining and Logistics
This expertise enables us to tailor policies that align with both regulatory needs and operational realities in the UAE.
Comprehensive Corporate Insurance Solutions
We offer flexible, industry-leading insurance coverage in areas such as:
Business Risk
- Property All Risk
- Fidelity Guarantee
- Money Insurance
Revenue Protection
- Business Interruption
- Loss of Profit
- Trade Credit Insurance
Security Threats
- Political Violence
- Terrorism
- Kidnap & Ransom
People Risk
- Workmen Compensation
- Work-from-Home Insurance
- Group Personal Accident
Liability Coverage
- Public Liability
- Employers Liability
- Directors & Officers (D&O)
- Events Liability
- Product Liability
- Professional Indemnity
Technology Risk
- Cyber Insurance
- Computer Crime
Construction Risk
- Contractors All Risk (CAR)
- Erection All Risk (EAR)
- Plant & Machinery Insurance
Other Classes
- Marine Cargo
- Motor Fleet
- Freight Forwarders Liability
- Jewellers Block
Value-Added Risk Services
Our support goes far beyond policy issuance. We help businesses enhance operational resilience and reduce claims frequency through:
- Risk Engineering & Advisory
- Cybersecurity Penetration Tests
- Regulatory Compliance Guidance
- Claims Concierge Support
- Digital Portals & Admin Tools
- Industry-Specific Reports, Webinars & Newsletters
Total Risk Management Approach
At Pacific Prime, we start by understanding your business model, challenges, and goals. We then evaluate risk exposure and deliver detailed benchmarking reports to help you choose the right provider and policy mix. Our team continuously monitors emerging risks and provides tailored support at every stage.
We’re proud to be the designated WBN broker for the UAE and a trusted advisor for hundreds of corporate clients navigating a fast-changing business environment.
To learn more about our corporate insurance solutions, click here.
Conclusion
While the cost of cyber insurance will vary depending on your policy and provider, Pacific Prime can make sure you’re getting the best insurance plan for your needs. Whether you’re looking for cyber insurance in the UAE or company insurance solutions, we are more than happy to help.
As a reputable insurance broker with over 25 years of experience in the industry, Pacific Prime Dubai makes sure you get the right plan for your requirements and budget. Contact us to receive expert advice or a no-obligation quote today.
For more information on trending insurance-related topics, check out our 2023 State of Health Insurance Report.
Jantra curates and reports on the results of Pacific Prime’s monthly newsletters, as well as manages Pacific Prime’s Deputy Global CEO’s LinkedIn posts. Complemented by her background in business writing, Jantra’s passion for health, insurance, and employee benefits helps her create engaging content - no matter how complex the subject is.
Growing up as a third-culture kid has given her a multicultural perspective that helps her relate to expats and their families while 8 years of working remotely have given her unique insight into hybrid work arrangements and enthusiasm for employee benefits.
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