Standard & Poor’s Credit Ratings Agency (S&P Global Ratings) has forecast a robust growth of 15-20% for the Takaful sector in the UAE in 2024, positioning it as the region's second-largest Takaful market.
The report also anticipates similar growth rates for the broader Islamic insurance sector in the GCC, predicting revenues to exceed $20 billion next year.
Takaful companies in Bahrain, Kuwait, Oman, and Qatar are expected to see growth rates of 5-10%. The GCC Islamic insurance sector has seen significant expansion over the past five years, with particularly strong revenue growth of 20-25% annually during 2022-2023, driven mainly by the Saudi market.
S&P highlighted several positive factors that will continue to benefit GCC Islamic insurers over the next 6-12 months, including favourable economic conditions, increased demand for insurance due to infrastructure investments, population growth, and supportive regulatory initiatives.
The overall credit conditions for Islamic insurers are expected to remain stable, though the potential for mergers persists as smaller insurers struggle with profitability.
News Source: Emirates News Agency
