IslamicFinance.de

The Takaful industry is expected to see rapid growth thanks to consolidation and regulatory improvement. The December 2017 acquisition of Al Hilal Takaful by Takaful Emarat in the UAE has attracted international attention to the market potential of the sector and to the obvious necessity for consolidation. Takaful Emarat managing director Mohammad al-Hawari said that after the merger a combined digital platform would provide more efficient and cost-effective services. In the UAE there are 34 domestic and 27 foreign conventional and Islamic insurance companies. Like in the UAE, Saudi Arabia’s insurance market remains largely fragmented, with 33 listed Takaful operators competing against each other. Saudi Arabia, the UAE, Bahrain, Oman and Qatar have already introduced new regulations specific to the Takaful industry, while Kuwait has a new insurance law draft. The future potential of Takaful in the GCC is driven by the reduction of state benefits.