Islamic Insurance Boom In GCC But Consolidation Needed

BMI View: Demand for Islamic insurance does present opportunities in the UAE, but the overly competitive market currently has too many providers and this is undermining profitability. The consolidation of smaller insurers will accelerate in the short term. Islamic insurance is popular in the region, but it does not allow for much profiteering, restricts flexibility and slows expansion as capital for re-investment is restricted by profit sharing with clients. BMI therefore remains slightly cautious about the market, as Islamic insurers often focus on the top line, but not the bottom

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