According to S&P Global, Saudi Arabia is expected to be the leader in the expansion of Islamic insurance in the Gulf Cooperation Council, with revenues predicted to surpass $20 billion in 2024. The industry is expected to grow by 15 to 20 percent the following year, with the Kingdom playing a pivotal role. This comes after the report from S&P Global that showed Saudi Arabia’s insurance market saw notable growth of 27 percent in 2022 and 23 percent in 2023, improving the overall performance of the region.
“We expect the Saudi market, similar to the past two years, will be the main driver of topline growth in the GCC region. This is because Saudi Arabia, the GCC region’s largest Islamic insurance market, continues to benefit from higher economic growth,” said the US-based credit rating agency.
The research emphasizes that Saudi authorities are aggressively striving to reduce the number of uninsured vehicles and implement new mandatory medical cover, which is predicted to further drive insurance demand and enhance premium income.
According to a different analysis, the insurance market in Saudi Arabia is expected to grow at a compound annual rate of 5.2 percent through 2028, reaching $22.3 billion, up from $18.19 billion in 2024. The major drivers of this growth are expected to be the health and motor segments, which account for 86 percent of total gross written premiums. The analysis was conducted by UK-based consultancy GlobalData.
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