Standard & Poor’s Credit Ratings Agency (S&P Global Ratings) has predicted today that the Takaful sector in the UAE, which is the second-largest Takaful market in the region, will see growth of between 15 and 20 per cent in 2024.
The report, issued today, also anticipates that the Islamic insurance sector in the GCC region will expand by 15-20 per cent in 2024, with revenues surpassing $20B.
Takaful companies in Bahrain, Kuwait, Oman, and Qatar are expected to achieve growth rates of 5-10 per cent.
The GCC Islamic insurance sector has experienced notable growth over the past five years, with revenue increases particularly robust during 2022-2023, when the sector grew by 20-25 per cent annually, largely driven by the Saudi market.
Islamic insurers in the GCC are expected to benefit from several positive factors in the next 6-12 months, including continued favourable economic conditions, rising insurance demand due to ongoing infrastructure investments, population growth, and regulatory developments.
Overall credit conditions for Islamic insurers are projected to remain stable over the next 6-12 months, with potential for mergers as many small and medium-sized Islamic insurers continue to see relatively modest profits.
