UAE floods caused widespread damage but the financial cost had just been revealed.
With torrential rains and deadly flooding impacting many Arabian Gulf countries between 13 to 17 April 2024, Gallagher Re estimates the market loss for UAE property to be in the range of $1.8bn to $2.3bn.
Hundreds of flights were cancelled and roads were flooded after heavy thunderstorms caused 5.6 inches of rain to soak Dubai in one day.
The storm first hit Oman before pounding the UAE with its heaviest rains since records began in 1949.
Outlining the particulars of the event, Gallagher Re explained that a strengthening area of low pressure and multiple rounds of thunderstorms, aided by warm waters in the Arabian Gulf, resulted in periods of heavy rainfall, frequent lightning, hail, and strong winds during April.
Gallagher Re said that its $1.8bn to $2.3bn loss figure for the UAE includes facultative risks and is subject to change given the uncertainties surrounding the estimate.
“The UAE had the highest rainfall in 75 years. Considering the rapid urbanisation that has occurred in major cities over the past few years, this leads to increased rainfall runoff, which increases flooding. Hence, these losses equate to an industry loss return period of at least 100 YRP.”
Gallagher Re
Meanwhile, the firm’s UAE Motor figure of $350m to $650m includes comprehensive only, since third-party liability motor policies would not be covered. Gallagher Re added that due to the mobile nature of motors as well, there are additional uncertainties associated with this figure.
