Standard & Poor’s Credit Ratings Agency (S&P Global Ratings) today forecast that the Takaful sector in the UAE, the region’s second-largest Takaful market, will grow by 15-20 percent in 2024.
The report, released today, also predicts that the Islamic insurance sector in the GCC region will grow by 15-20 percent in 2024, with revenues exceeding US$20 billion.
Takaful companies in Bahrain, Kuwait, Oman and Qatar are expected to register growth rates of 5-10 percent.
The GCC Islamic insurance sector has witnessed significant expansion over the past five years, and revenue growth was particularly strong during 2022-2023, when the sector grew 20-25 percent annually, with the Saudi market being the main driver of this growth.
GCC Islamic insurers will continue to benefit from several positive factors over the next 6-12 months, including continued favourable economic conditions leading to increased demand for insurance, thanks to ongoing investments in infrastructure projects, population growth and regulatory initiatives.
Overall credit conditions for Islamic insurers are expected to remain stable over the next 6-12 months and mergers remain a possibility as many small and medium-sized Islamic insurers continue to generate relatively weak profits.
Source: Wam.ae
