Standard & Poor’s Credit Ratings Agency (S&P Global Ratings) today forecast that the Takaful sector in the UAE, the region's second-largest Takaful market, will grow by 15-20 percent in 2024.

 

The S&P report, released today, also predicts that the Islamic insurance sector in the GCC region will grow by 15-20% in 2024, with revenues exceeding $20 billion.

 

Takaful companies in Bahrain, Kuwait, Oman and Qatar are expected to register growth rates of 5-10 percent.

 

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

 

GCC Islamic insurers will continue to benefit from several positive factors over the next 6-12 months, including continued favourable economic conditions leading to increased demand for insurance, thanks to ongoing investments in infrastructure projects, population growth and regulatory initiatives, according to S&P.

 

Overall credit conditions for Islamic insurers are expected to remain stable over the next 6-12 months and mergers remain a possibility as many small and medium-sized Islamic insurers continue to generate relatively weak profits, it added.