Gulf businesses buy up political violence insurance as conflict spreads

March 8, 2026 - 05:36

As geopolitical tensions and regional conflicts show signs of spreading, a significant shift is occurring in corporate boardrooms across the Gulf. Businesses, particularly those in critical infrastructure and tourism, are proactively moving to limit potential financial losses by purchasing specialized political violence insurance.

This surge in demand is notably driven by sectors with high-value, fixed assets. Major data centres, large-scale energy projects, and luxury hotel groups are at the forefront, seeking coverage for risks ranging from war and terrorism to civil unrest and sabotage. The insurance is designed to protect against physical damage to property, business interruption losses, and even ransom payments in kidnap scenarios.

Brokers and underwriters report a marked increase in inquiries and policy uptake over recent months. The trend underscores a growing recognition that traditional property insurance is insufficient in a volatile regional landscape. Companies are now conducting extensive risk assessments, with political instability becoming a primary factor in investment and operational planning.

This move towards specialized risk mitigation reflects a pragmatic approach to doing business in a complex environment. By transferring a portion of the financial risk, Gulf-based firms aim to ensure continuity and protect their substantial investments, even as the shadow of conflict lingers on the horizon. The market for such niche insurance products is expected to expand further as businesses prioritize resilience.