JEDDAH, 10 March 2005 — In a significant development for the region’s growing insurance industry, the $1.3 billion Bahrain Financial Harbor (BFH) yesterday announced Saleh Al-Ali Al-Rashed, a Saudi businessman, will invest in the Bahrain International Insurance Center (BIIC), the world-class insurance hub.
The announcement of the partnership with Al-Rashed was made at the foundation stone-laying ceremony of BIIC held on the BFH construction site under the patronage of Rasheed Mohammed Al-Maraj, governor of the BMA. The function was attended by an array of dignitaries including senior officials from the Ministry of Finance, officials from BFH, and insurance industry delegates attending the ongoing Second Middle East Insurance Forum currently being held in Manama.
Terming BIIC as a milestone development for the insurance industry, Esam Janahi, chairman of Bahrain Financial Harbor Holding Company, said: “Insurance is a very vibrant sector and has catalyzed the growth of the financial services industry in Bahrain. There are salient developments taking place in this industry and BIIC, which is a world-class project, should be viewed in this context. We are confident that BIIC will further strengthen the insurance sector and encourage the creation of innovative insurance mechanisms, adding more value to the financial services industry of Bahrain and the region.”
Commenting on the role BIIC will play in bolstering the region’s conventional and Islamic insurance industry, Janahi said: “Bahrain has the traditional advantage of being the insurance and financial hub in the Middle East. Being an integrated and single-largest composite development for the regional insurance industry, BIIC will attract global insurance players to Bahrain and accelerate the industry’s contribution to the GDP.”
Welcoming Al-Rashed as an investor of the BIIC, Janahi said there is widespread enthusiasm among regional investors toward innovative and high-potential projects such as BIIC. Al-Rashed will be investing $50 million initially to construct the purpose-built, world-class insurance facility.
Currently, Al-Rashed is the chairman of the Bahrain-based Trade Union Insurance Company, Universal Corporation for Trade and Industry, Saudi United Co., Al-Rashed and Al-Thunayan Co., Saudi Activities Co., Saudi Logistics Support Installments Co., Animals Product & Feeds Pentagonal Co. and Amlac Hotel Services Co. He is also the deputy chairman of the Kuwait-based Al-Ahlia Investment Company established in 1974.
Janahi further said that BIIC will offer an ideal base and a regional vantage point for insurance industry players who are keen to tap the growth potential of the region. “There is no doubt that the insurance industry in the region is currently limited in its market penetration levels and product range. BIIC will lead to more value addition in the regional insurance industry and bring in innovative products into the market including bancassurance, captive insurance and Takaful and re-Takaful.
Commenting on the development of BIIC, Al-Rashed said: “I am proud to be part of this prestigious project which indeed is a pioneering initiative. The insurance industry in the region has a lot of untapped potential and BIIC will offer an unparalleled opportunity to unlock this potential.”
“It is also an honor for me to be working in close cooperation with BFH, the landmark project which will reinforce the status of Bahrain as the financial capital of the Middle East” he said, adding that piling work for the BIIC has already started last month and the construction of BIIC will be completed by September 2006.
Within the BFH environment, BIIC will come up in close proximity to the financial center. It will be a stand-alone 22-story tower with a net leasable area of around 19,000 square meters.
