Islamic insurers in UAE eye mergers

April 14 2015 by InsuranceAsia News Staff

The United Arab Emirates (UAE) Insurance Authority revealed that several insurance companies in the UAE have approached the authority seeking assistance for possible mergers and acquisitions in the sector.

On the sidelines of an Islamic insurance event, UAE Insurance Authority Director-General Ibrahim Al Zaabi revealed that talks are at an early stage although he did not mention the names of the companies that seek M&A.

Analysts believe that the tough new regulations, combined with financial losses and stiff competition in the UAE, one of the Gulf region’s largest takaful market, are pushing insurance providers to consider mergers.

There are more than 50 conventional and Islamic insurers operating in the UAE. The UAE banks on Islamic insurance as one of the eight pillars that will make Dubai the centre of the global Islamic economy.

The UAE Insurance Authority said it will create a committee that will oversee Islamic insurance by the end of this year as part of efforts to standardize the insurance sector.

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