Saudi Arabia: Country's share of GCC insurance market projected to expand in next five years
Source: Middle East Insurance Review | Mar 2024
Saudi Arabia is projected to continue to be the largest insurance market in the GCC by GWP, reaching a market share of 42.6% by 2028, according to UAE-based investment banking advisory firm, Alpen Capital, in its latest “GCC Insurance Industry” report.
The UAE insurance market is forecast to follow closely with a projected market share of 40.3% in 2028.
Between 2023 and 2028, the insurance markets in Saudi Arabia and the UAE are expected to grow at a CAGR of 5.8% and 4.9%, respectively, the report says.
Saudi Arabia’s insurance market is expected to benefit from consolidation that will potentially improve market profitability and reduce price competition.
The UAE insurance industry is experiencing sustained growth and expansion, driven by rising insurance demand, effective risk management and overall economic growth. The ongoing UAE Vision 2031 initiatives, focusing on economic diversification in service sectors are expected to propel the demand for commercial insurance further.
Kuwait’s insurance industry is projected to witness the highest growth rate in the GCC at a CAGR of 6.4%, attributed to steady population growth between 2023 and 2028 and increased government investments in infrastructure.
For the GCC insurance market as a whole, gross written premium (GWP) is projected to grow at a CAGR of 5.3% reaching $44.4bn by 2028.
Saudi Arabia surpassed the UAE to become the largest insurance market in the GCC in 2022. M