RIYADH, 18 October 2003 — A Pakistani company, Adamjee Insurance Company Limited (AICL), is winding up its operations in Saudi Arabia owing to its inability to meet the newly enacted capital adequacy requirement.
“The new rules and regulations for insurance companies operating in Saudi Arabia require a minimum paid-up capital of SR100 million, a condition this company can’t fulfill”, said an official statement. The board of directors of Adamjee Insurance — the largest but financially troubled insurance company in Pakistan — facing takeover threats by an industrial conglomerate.
A recently convened board meeting felt that the company was unable to meet the minimum capital requirement enacted in Saudi Arabia. “Though the Saudi business made up for a small portion of the company’s revenue, it would hurt its future potential, as it is a forced disclosure,” according to Kashif Artani, an investment analyst.
