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The 2025 Healthcare Odyssey
Welcome to the first edition of Law Update for 2025. As we begin this exciting year, we are pleased to turn our attention to one of the most dynamic sectors in the UAE and the broader GCC region – healthcare. Over the past several years, the region has seen unprecedented growth in this sector, driven by legislative advancements, technological innovations, and the increasing focus on sustainability and AI. As such, healthcare is set to be one of the most important sectors in the coming decade.
In this issue, we explore key themes that are significantly shaping the future of healthcare in the UAE, such as recent changes in foreign ownership laws. These reforms present a major opportunity for foreign investors, opening up new avenues for international collaborations and improving the overall healthcare infrastructure. The changes in ownership laws are an important milestone, and we provide an analysis of what this means for the industry and the various players involved.
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New Minimum Capital Requirements for Egyptian Companies operating in the Insurance Sector
On January 19, 2025, the Board of Directors of the Financial Regulatory Authority (“FRA”) has issued Decree No. 196 of 2024, establishing new minimum capital requirements for companies operating in the insurance sector in line with the Unified Insurance Law No. 155 enacted in July 2024 (the “Decision”).
Highlights of the Decision:
The minimum issued and paid-up capital for companies operating in the insurance sector shall be as follows:
| Activity | Minimum Capital | Reconciliation Grace Period | |||
| First: Insurance and reinsurance companies | |||||
| 1. | Life insurance and money formation companies & Property and Liability insurance companies | First Phase
EGP 400 million |
Second Phase
EGP 600 million |
One year for the first phase
& Two years for the second phase |
|
| 2. | Non-life and liability insurance companies that practice any of the branched of petroleum, aviation or energy insurance | First Phase
EGP 450 million |
Second Phase
650 million |
One year for the first phase
& Two years for the second phase |
|
| 3. | Micro insurance companies | EGP 40 million | One year | ||
| 4. | Insurance companies specializing in one of the insurance branches & specialised medical insurance companies | EGP 75 million | One year | ||
| 5. | Re-insurance companies | EGP 1 billion | One year | ||
| Second: Companies Practicing Insurance Related Activities | |||||
| 6. | Medical insurance program management companies | EGP 20 million | One year | ||
| 7. | Insurance brokerage companies & Reinsurance brokerage companies | EGP 5 million | One year | ||
| 8. | Risk Assessment specialised companies & companies with expertise in inspection and damage assessment & companies specialised in insurance consulting & actuarial expertise companies | EGP 3 million | One year | ||
Finally, companies must submit a timetable outlining their capital increase plans within one month of the Decision’s effective date. They are also prohibited from distributing cash dividends to their shareholders before meeting the minimum capital requirements, unless the FRA’s prior non-objection to such distribution has been obtained.
For more information, please contact Ali El Hawary, Partner, Head of Banking & Finance, Egypt Office Yasmeen Qotbi, Senior Associate, at the Banking and Finance department, Egypt office.
Key Contacts
a.elhawary@tamimi.com Spread the news
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