News Middle East25 Nov 2019

GCC:Region's biggest 2 insurance markets to see steady growth from 2019 to 2024

25 Nov 2019

Between 2019 and 2024, the two largest insurance markets in the GCC, namely, the UAE and Saudi Arabia, are anticipated to grow at a CAGR of 4.2% and 5.0% respectively, says Alpen Capital (ME), a Dubai-headquartered investment banking advisory firm.

In UAE, infrastructure spending and phased introduction of mandatory health insurance across its remaining Emirates will drive overall growth in the sector.

Saudi Arabia is expected to benefit from the significant infrastructural developments, coupled with new business and a reformed tourism program. Furthermore, a rapid increase in the number of women drivers, which is likely to grow by 3m in 2020, is expected to facilitate growth of Saudi’s insurance segment.

Across the GCC, Kuwait is anticipated to grow at the fastest annualized average pace of 8.2%. The market share of each GCC country is expected to remain constant through 2024.

Exposure to risky assets

Insurance firms in UAE, Qatar and Saudi Arabia have relatively higher exposure to capital markets making them prone to volatility in equity markets and susceptible to market and economic surprises, the report adds.


 


 

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