JEDDAH, 18 September 2005 — The Dubai-based Islamic Arab Insurance Company (IAIC) has won the approval of Saudi Arabian Monetary Agency to establish a takaful insurance firm in the Kingdom.
This was announced by Sheikh Khaled ibn Zayed ibn Saqer Al-Nahayan, chairman of the company, which has become one of the largest Islamic insurance firms after raising its capital to one billion dirhams. Many foreign companies have already applied for license to operate in the Kingdom. According to SAMA, 19 companies are now under the licensing process while nine others under study.
Dr. Saleh Malaeka, executive vice president of the UAE firm, said his company would have a 49 percent stake in the new insurance company in Saudi Arabia, adding that it would start operation early next year.
According to a study conducted by the company, Saudi Arabia would make a revenue of 33 billion dirhams from takaful service while the UAE and Egypt would make 17 billion dirhams each.
Sheikh Khaled expected that his company would make a profit of 60 million dirhams this year. “Our profit is poised to reach 90 million dirhams next year and 260 million dirhams in 2010,” Sheikh Khaled said.
Sheikh Khaled expected that the international takaful market would grow by 15-20 percent annually, making it one of the largest financial markets in the world.
