Qatar: Property insurance to reach US$1.8 bln by 2019
Source: Middle East Insurance Review | Jul 2016
Property insurance is expected to remain the largest business in the non-life sector in Qatar over the next couple of years, reaching QAR6.4 billion (US$1.8 billion) by 2019, fuelled by projected infrastructure spending ahead of the 2022 FIFA World Cup and investment in the non-oil sectors in order to diversify the economy, according to a report by Timetric. In the last five years, the segment’s GWP grew from QAR1.8 billion in 2010 to QAR4.3 billion in 2014, at a CAGR of 24%.
The growth of property insurance will be influenced by an increased investment in construction activity, propelled by real estate and infrastructure development in particular, the report said. As Qatar looks to diversify its economy, the government is planning to spend QAR546.1 billion on infrastructure projects, as well as allocating more budget to non-oil sectors.
The successful World Cup bid is accelerating large-scale infrastructure projects such as metro and light rail systems, the construction of roads, ports, stadium and related sporting infrastructure. Qatar’s real GDP is expected to rise from QAR280.9 billion in 2014 to QAR368.3 billion in 2019, at a CAGR of 5.6%.
The Qatari government plans to start investing in the non-oil sectors – an initiative that is also expected to support growth in property insurance. In 2015, India entered into a bilateral agreement with Qatar to invest in the country’s infrastructure and information technology sectors as part of the Qatar 2030 vision initiative.
QAR1 = US$0.27