RIYADH: The Gulf Cooperation Council’s Islamic insurance sector is set to maintain around 10 percent annual growth in 2025 and 2026, buoyed by population expansion, infrastructure spending, and regulatory reforms, according to S&P Global Ratings.
Saudi Arabia, the region’s largest Islamic insurance market, will continue to drive growth as Vision 2030 megaprojects fuel demand for coverage, S&P said in its latest white paper.
Islamic insurance, or Takaful, has expanded rapidly across the GCC in recent years, logging 24 percent to 28 percent growth in 2022 and 2023. Strong government backing, mandatory health insurance regulations, and a rising awareness of Sharia-compliant financial products have supported the sector’s expansion.
“Islamic and Takaful insurers in the GCC region continue to benefit from favorable growth prospects, and we therefore expect 2025 to be another year with solid top-line growth,” S&P said.
However, the agency cautioned that “heightened competition in motor and medical lines, primarily in Saudi Arabia, the largest Islamic insurance market in the region, will likely weigh on overall earnings in 2025.”
