Saudi Arabia leads global Takaful growth

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Islamic insurance, known as Takaful, grew 19 per cent globally in 2010 and is expected to continue its fast-paced penetration into Muslim-dominated countries in the future, according to an Ernst & Young (E&Y) report.

The report said Takaful around the world was worth US$8.3 billion in 2010 with Saudi Arabia contributing more than half to the industry. The GCC countries overall – Saudi Arabia, UAE, Qatar, Bahrain, Oman and Kuwait – earned $5.68 billion while Southeast Asia contributed $2 billion.

Ashar Nazim, E&Y’s head of Islamic financial services for the Middle East and North Africa, was quoted by Bloomberg as saying the Takaful figures were outstanding given the global economic downturn.

“With the current growth trends, and the addition of new fringe markets such as Indonesia and Bangladesh, we expect gross contributions of $12.4 billion by 2012,” he said.

Bloomberg also reported that the Islamic finance industry will grow to $2.8 trillion by 2015 from $1 trillion, according to estimates from the Kuala Lumpur-based Islamic Financial Services Board. Its figures show that Islamic finance represents 25 per cent of business in GCC and 22 per cent in Malaysia.

Takaful enjoys a 15 per cent share in the GCC and 10 per cent in Malaysia, says E&Y.

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Reading Time: 1 minute

Islamic insurance, known as Takaful, grew 19 per cent globally in 2010 and is expected to continue its fast-paced penetration into Muslim-dominated countries in the future, according to an Ernst & Young (E&Y) report.

Reading Time: 1 minute

Islamic insurance, known as Takaful, grew 19 per cent globally in 2010 and is expected to continue its fast-paced penetration into Muslim-dominated countries in the future, according to an Ernst & Young (E&Y) report.

The report said Takaful around the world was worth US$8.3 billion in 2010 with Saudi Arabia contributing more than half to the industry. The GCC countries overall – Saudi Arabia, UAE, Qatar, Bahrain, Oman and Kuwait – earned $5.68 billion while Southeast Asia contributed $2 billion.

Ashar Nazim, E&Y’s head of Islamic financial services for the Middle East and North Africa, was quoted by Bloomberg as saying the Takaful figures were outstanding given the global economic downturn.

“With the current growth trends, and the addition of new fringe markets such as Indonesia and Bangladesh, we expect gross contributions of $12.4 billion by 2012,” he said.

Bloomberg also reported that the Islamic finance industry will grow to $2.8 trillion by 2015 from $1 trillion, according to estimates from the Kuala Lumpur-based Islamic Financial Services Board. Its figures show that Islamic finance represents 25 per cent of business in GCC and 22 per cent in Malaysia.

Takaful enjoys a 15 per cent share in the GCC and 10 per cent in Malaysia, says E&Y.

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