Middle East Insurance: Optimism Tempered by Caution?
Type
E-journal
Date
10 Apr 2013
Jurisdiction
Bahrain, Egypt, Iran, Iraq, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, United Arab Emirates
Taxonomy
Companies & Corporate Bodies, General Insurance Law
Copyright
LexisNexis
Relevant company
Clyde & Co
Analysis
Plans were recently announced to construct the world's biggest Ferris wheel in Dubai, where the world's tallest hotel has just opened. The world's biggest mall announced, trumping the existing biggest, also in Dubai. Looking towards the Qatar World Cup in 2022, one estimate puts the number of additional hotel rooms required at 80,000. A return to the vibrant growth and prestige projects of the pre-2008 years? With the developed world experiencing near saturation in some insurance sectors, hopeful eyes have continued to be focussed on the Middle East as a source of potential growth, with its rates of low penetration for both short and long term retail products, and for more complex commercial covers.
Growth prospects
It is predicted that the insurance markets of the Gulf Cooperation Council (GCC)-will grow 20% annually over the next five years. The anticipation is that growth will be partly driven by regulators introducing new compulsory lines of insurance in the motor and health sectors. But there are also signs that as business continues to develop across the region, so more sophisticated covers are required.