Standard & Poor’s expects the UAE’s Takaful insurance sector to grow by 20% by 2024

Standard & Poor’s Ratings Agency (S&P) today forecasted that the takaful sector in the United Arab Emirates, the second largest takaful market in the region, will grow by 15% to 20% in 2024..

The report, released today, also expects the Islamic insurance sector in the Gulf region to grow by 15% to 20% in 2024, with revenues exceeding $20 billion..

He explained that it is expected that Takaful companies in Bahrain, Kuwait, Oman and Qatar will record growth rates ranging between 5% and 10%.%.

The agency stated that the Islamic insurance sector in the Gulf region has witnessed significant expansion over the past five years, and revenue growth was particularly strong during 2022-2023, when the sector achieved growth of 20%-25% annually, with the Saudi market being the main driver of this growth..

It is expected that the Gulf Islamic insurance companies will continue to benefit from many positive factors during the next 6-12 months, including the continuation of favorable economic conditions that lead to an increase in demand for insurance, thanks to the ongoing investments in infrastructure projects, population growth and regulatory initiatives..

It also expected that the overall credit conditions of Islamic insurance companies will remain stable over the next 6-12 months, and that mergers will remain a possibility, given that many small and medium-sized Islamic insurance companies continue to achieve relatively weak profits..