Skandia said the new company was licensed to sell investment – though not insurance – products “to expat and local investors through authorised intermediaries.”
Michelle Andrews, commercial director of Skandia International, said Skandia and Old Mutual had several types of product that might suit clients in the UAE, from non-insurance redemption-based investment plans to mutual funds.
The opening of the new office follows the stalling of a separate Skandia application for a UAE insurance licence.
Royal Skandia, the Isle of Man-domiciled offshore insurance division of Skandia International, lodged an application in 2008. However, it appears to be gathering dust, alongside those of other insurance companies amid a reported moratorium on the granting of new licences.
Andrews said she was still “optimistic” that the licence would be approved in “due course”, adding that she believed the financial crisis had caused the delay.
Another company caught by the hold-up is Royal London 360°.
The company said it was able to write insurance business because it has a representative office licence, issued by the Dubai government, that allows it to distribute to financial advisers.
David Kneeshaw, Royal London 360°chief executive, added: "We remain sanguine about the current moratorium and completely understand the Dubai government’s stance on this matter.
"Given the recent global economic turmoil it clearly makes sense for the authorities to take a considered view on how they wish the industry to develop and the organisations they wish to attract."
Generali International, which also has no direct insurance licence, recently completed a deal with its licensed parent company through which it will be able to distribute its products in Dubai.
