Saudi Re, the sole reinsurance company in Saudi Arabia, has received a Shariah certificate for its offerings from the Shariyah Review Bureau (SRB).
With a solid financial base of total assets SAR2.9bn ($773m) and an A3 rating by Moody's, Saudi Re is eyeing opportunities in its target markets in the kingdom, the Middle East, Asia, Africa and Lloyd’s.
Mr Fahad Al-Hesni, managing director and CEO of Saudi Re, said in a statement, “We are progressing well in our international diversification strategy, and the Shariah certificate provides additional reassurance to an important segment of our clients. Demonstrating our Shariah compliance will complement our value proposition to our clients especially in the takaful and cooperative reinsurance market.”
He added that Saudi Re has identified Environmental, Social and Governance (ESG) objectives from investors' perspective, among which Shariah compliance is emphasised as a key factor in reflecting responsible conduct.
Mr Yasser S Dahlawi, founder and CEO of SRB, said, “Cooperative insurance and reinsurance companies that deal with significant, complex risk-based transactions are actively embracing our Shariah advisory services. By helping Saudi Re attain Shariah certification by reviewing its processes, we’re supporting them to gather meaningful insights by staying focused on their business-critical functions while we cater to all their Shariah compliance needs.”
The SRB's scope of the engagement includes reviewing reinsurance, claims, financial and investment transactions of Saudi Re and ensuring compliance with Shariah standards as set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).