RIYADH: Saudi Arabia, which represents between 50 percent and 60 percent of the gross domestic product (GDP) of the Middle East and North Africa (MENA) region and 70 percent of the GDP among Gulf Cooperation Council (GCC) member states, will witness strong growth in its insurance sector over the next five years. The estimated per capita premium in the Kingdom is expected to reach $220 during this period compared to $53 until recently.
A report prepared by the Oxford Business Group (OBG) in partnership with the Saudi Arabian General Investment Authority (SAGIA) revealed these facts.
The 218-page document, which gives an overview of the Saudi economy and its different sectors, was released at a press conference here yesterday. “The Report: Saudi Arabia 2008” is rated as the premier guide for foreign direct investment into the country’s vibrant economy.
The press briefing was attended by Fahd Hamidaddin, SAGIA’s general director for marketing and corporate communication; Oliver Cornock, OBG regional editor; Timothy Gray of HSBC; Moahmmed Al-Jadaan, chief executive officer of Al-Jadaan & Partners Law Firm and Elly Kusters, OBG country director for Saudi Arabia.
The report has been published with capital markets partner HSBC Investment Bank, the Kingdom’s first global investment bank, accountancy partner KPMG Saudi Arabia and law partner Al-Jadaan.
The report features a series of exclusive interviews with leading political and economic figures conducted by a team of analysts, who have been based in Saudi Arabia for six months, and a range of selections, focusing on economy, banking, capital markets, Islamic financial services and insurance.
The report has in-depth information and analysis about different sectors including energy, transport, tourism, real estate and construction, telecoms and IT, industry, retail, media and advertising, health and life services and education.
Referring to the insurance industry, the report said that this sector has been hampered by the lack of awareness about the benefits of insurance in Saudi Arabia. “Competition is tough and companies are jockeying for position, not with the expectation of immediate windfall, but hoping for gains in the future once the market has grown,” said the report.
