Saudi Arabia: SAMA issues draft rules to attract foreign takaful operators
Source: Middle East Insurance Review | Jun 2018
The Saudi Arabian Monetary Authority (SAMA) has published draft rules of licensing and operation of branches for foreign insurers and reinsurers wanting to set up business in the kingdom.
Licences from the central bank for specific insurance lines would be dependent on foreign applicants having approval from their local regulators for the same activities for at least the last five years, according to the draft rules.
To open a branch, insurers would have to place a deposit ranging from $16m to $200m in a local bank. Reinsurers are required to pay a higher deposit.
Currently, there are no foreign branches of foreign insurers in the kingdom, with foreign companies instead having to establish fully capitalised subsidiaries or own a limited share of local insurance businesses.
At present, there are more than 30 insurers in operation serving a population of more than 30 million people. Industry sources said allowing more foreign entrants would help to boost competitiveness. M