Saudi Insurance Market to Reach SR 15 Billion Annually
The Saudi Capital Markets Authority (CMA) announced its approval to float 40% of Saudi IAIC Co for Cooperative Insurance in an IPO during the period from March 17 to 26, 2007. among a group of five cooperative insurance companies.
On this occasion, Dr. Saleh Malaikah predicted that the volume of the Saudi cooperative insurance market could reach 15 billion riyals a year.. This prediction was made within the context of of Dr. Malaikah’s comments welcoming the CMA announcement. In his capacity as chairman of Saudi IAIC.
Dr. Malaikah indicated that Salama (IAIC) of the UAE had participated with 30% of the Saudi IAIC share capital of 100 million riyals. It is worth noting that Salama (IAIC) is the biggest takaful company in the world whose capital exceeds one billion UAE dirhams. Salama was the first insurance company In the world that practiced Islamic insurance (takaful). The company’s operations in Saudi Arabia extend to more than a quarter of a century.
On his part, Mr. Faisal Al-Kordy, the general manager of Saudi IAIC for Cooperative Insurance, welcomed the CMA approval to offer 40% of the company’s capital in an IPO. He indicated that despite the relatively recent establishment of Saudi IAIC, it is in fact a well founded company as a
continuation of Salama (IAIC) operations in the Kingdom’s markets for over a
quarter of a century.
