Saudi insurance sector net income plummets, as premiums go up

Saudi insurance sector net income plummets, as premiums go up
Protection and saving insurance led the rise in gross written premium (GWP). (Shutterstock)
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Updated 14 September 2021

Saudi insurance sector net income plummets, as premiums go up

Saudi insurance sector net income plummets, as premiums go up
  • New figures from the Saudi Central Bank (SAMA) showed premiums reaching SR9.4 billion or an increase of 8.1 percent during the same period

DUBAI: Net income of Saudi Arabia’s insurance sector fell by 59.2 percent in the second quarter, compared to the same period last year.

This was attributed to a steep drop in operating income from SR709 million ($189 million) to SR74 million.

New figures from the Saudi Central Bank (SAMA) showed premiums reaching SR9.4 billion or an increase of 8.1 percent during the same period.

Protection and saving insurance led the rise in gross written premium (GWP), recording a 34 percent rise to SR436 million.

GWP is used to measure an insurance’s company’s revenue health.

Premiums of health insurance rose by 6.6 percent to SR5.1 billion, and the motor insurance sector fell by 9.9 percent to SR1.7 billion year-on-year.

Both insurance types retained a substantial portion of their business, SAMA showed, with retention ratio reaching 97.6 percent and 94.5 percent, respectively.

 


Industry leaders to attend Riyadh mineral summit in 2022

Industry leaders to attend Riyadh mineral summit in 2022
Updated 15 sec ago

Industry leaders to attend Riyadh mineral summit in 2022

Industry leaders to attend Riyadh mineral summit in 2022

RIYADH: Industry leaders from around the world will attend the Future Minerals Summit, which will be held next year from Jan. 11 to 13 in Riyadh, the Saudi Press Agency reported.

Prominent organizations include ACWA Power, Lucid Motor, Barrick Gold Corp., Ivanhoe Mines, the World Bank, the World Gold Council, and the International Council on Mining and Metals. 

The event aims to showcase investment opportunities in the Kingdom’s mining sector.

More than 50 international speakers will attend the summit. Ministers from over 25 Asian and African countries will also hold a meeting, the Saudi Industry Ministry has confirmed.

Speakers will highlight the existing opportunities in the fast-developing mining sector in Saudi Arabia and the rest of the Middle East, Central Asia and Africa, said Khalid Al-Mudaifer, vice minister for mining affairs at the Saudi Ministry of Industry and Mineral Resources.


UAE’s DEWA selects banks for multi-billion dollar IPO

UAE’s DEWA selects banks for multi-billion dollar IPO
Updated 4 min 35 sec ago

UAE’s DEWA selects banks for multi-billion dollar IPO

UAE’s DEWA selects banks for multi-billion dollar IPO

RIYADH: Dubai’s main supplier of water and electricity, DEWA, has selected Citigroup, HSBC Holdings, Emirates NBD Bank to lead its initial public offering, Bloomberg reported.

The state-owned company is expected to become the biggest listing in the emirate, and is planning to seek a valuation of around $20 billion to $25 billion.

DEWA has also picked other banks for minor roles.

While Dubai requires companies to sell at least 25 percent of their shares in IPO, the state-owned utility may opt for a smaller amount at first.

The company caters to all Dubai residents and operated 12.3 gigawatts of power capacity last year.

 


UAE’s ADNOC to invest $127bn in 2022-26 as oil, gas reserves rise

UAE’s ADNOC to invest $127bn in 2022-26 as oil, gas reserves rise
Image: Shutterstock
Updated 13 min 39 sec ago

UAE’s ADNOC to invest $127bn in 2022-26 as oil, gas reserves rise

UAE’s ADNOC to invest $127bn in 2022-26 as oil, gas reserves rise
  • ADNOC said that reinforced the UAE’s position as number six in the world for oil reserves and number seven for gas reserves

Abu Dhabi National Oil Company announced on Wednesday a $127 billion capital spending plan for 2022-2026, as it reported an increase in the United Arab Emirates’ oil and natural gas reserves.


The state-owned company said national reserves had risen by 4 billion stock tank barrels, stb, of oil and 16 trillion standard cubic feet, scf, of natural gas, taking the totals to 111 billion stb and 289 trillion scf respectively.


ADNOC said that reinforced the UAE’s position as number six in the world for oil reserves and number seven for gas reserves.


Abu Dhabi Crown Prince Sheikh Moahmmed bin Zayed chaired the company’s annual board meeting, which approved capital spending of 466 billion dirhams ($127 billion) for 2022-2026, up from $122 billion for 2021-25.


The investment will expand upstream production capacity, the company’s downstream portfolio, plus low carbon and clean energy businesses, it said, without giving details.


ADNOC said that since the launch of its so-called in-country value program in 2018, it had driven 105 billion dirhams back into the UAE economy and created over 3,000 jobs in the private sector, including over 1,000 this year.


It aims to drive over 160 billion dirhams back into the UAE economy across 2022-2026 through the same program, it added.


The ADNOC board also approved a “New Energies Strategy” aimed at reducing its carbon footprint and capitalizing on opportunities in renewable energy, hydrogen and other lower carbon fuels.


Separately, the government announced a global clean energy powerhouse intended to spearhead the drive to net-zero carbon by 2050.

Consolidating their combined efforts in renewable energy and green hydrogen, Abu Dhabi National Energy Company PJSC (TAQA), Mubadala Investment Co. and ADNOC will partner under the Abu Dhabi Future Energy Company (Masdar) brand.


The partnership will have a combined current, committed, and exclusive capacity of over 23 gigawatts (GW) of renewable energy, with the expectation of reaching well over 50 GW total capacity by 2030, TAQA said in a separate statement.


TAQA will take the leading role with a 43 percent shareholding in Masdar’s renewable energy business, with Mubadala holding 33 percent and ADNOC 24 percent.


Meanwhile, ADNOC will take the leading role with a 43 percent shareholding in Masdar’s green hydrogen business, with Mubadala holding 33 percent and TAQA 24 percent, it said.


Egyptian startup Klickit completes its first funding round 

Egyptian startup Klickit completes its first funding round 
Updated 27 min 55 sec ago

Egyptian startup Klickit completes its first funding round 

Egyptian startup Klickit completes its first funding round 

RIYADH: Egypt-based fintech Klickit has completed its first investment round, led by EFG Finance and Camel Ventures, the venture capital arm of dfin Holdings, Wanda reported. 

The amount of the funding is not disclosed.

The investment seeks to solidify the startup’s technology stack and implement value-added services to sell new services to the company’s wide network of schools and universities. 

Founded in 2017, Klickit is a payment management and digital collection platform that aims to digitize payment services. 

Klickit currently serves over 55,000 Egyptian public schools, and more than 25 million students, under the Ministry of Education.  

It has processed over 500 million Egyptian pounds ($32 million) in different kinds of payment transactions for educational entities since its inception.

 


Egypt aiming to triple exports to Africa by 2025, says minister

Egypt aiming to triple exports to Africa by 2025, says minister
Updated 34 min 34 sec ago

Egypt aiming to triple exports to Africa by 2025, says minister

Egypt aiming to triple exports to Africa by 2025, says minister

RIYADH: Egypt is planning to increase exports to Africa from $5 billion a year to up to $15 billion over the next four years, Egyptian Minister of Planning and Economic Development Hala Al-Saeed has said.

The minister said in an interview with Asharq that Egypt is working on a strategy to increase total global exports to $100 billion annually.

Al-Saeed also said that her country is currently studying the needs of the African markets from outside the continent and focusing on Egypt's export-distinct sectors of engineering, textiles, pharmaceuticals and agricultural crops.

These supported Egypt's export growth during the third quarter of 2021.

Egypt is contributing to promoting commercial ties between Common Market for Eastern and Southern Africa member states.

This requires studying competitive factors for competitive commodity prices, including the cost of transportation and trade-supporting logistics networks, the minister said.