Saudi Arabia – Allowing insurers to invest in Sukuks
Friday, 05 05 2017, Category: Insurance and Reinsurance, Country: Saudi Arabia
Mr. David Anthony, manager at the Standard & Poor’s rating agency said that Saudi insurance companies have a good opportunity if they are allowed in invest in the Sukuks issued by the government, which seeks to finance its deficit. This will reflect positively on the investments of insurers and the returns achieved on these Sukuks.
Saudi Arabia issued in the last month of April Sukuks amounting to SAR 33.75 billion noting that the demand on these Sukuks exceeded SAR 123.75 billion.
Moreover, he expects the insurance premiums in KSA to increase by 5% during the current year and to increase by 10% to 15% in year 2018. Therefore, growth will depend on the actions of government in enforcing motor insurance on uninsured vehicles as well as controlling companies that do not provide health insurance to their employees.