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UAE Records Biggest Three-Year Takaful Rise

Ernst & Young reveals huge Islamic insurance growth in emirates.

The UAE and India were the biggest growth markets for Islamic insurance during a three-year period, an Ernst & Young report has revealed.

A 135 per cent compound annual growth rate for takaful was registered across the emirates and India between 2005 and 2008 – 100 per cent more than the 35 per cent increase experienced in Indonesia.

Meanwhile, the Gulf recorded 45 per cent growth during the same period.

According to the report, takaful contributions will exceed $8.9bn this year compared to $5.3bn in 2008.

Saudi Arabia and Malaysia were the two biggest takaful markets for revenue in 2008, generating $2.9bn and $900 million respectively.

But despite some markets reporting strong figures two years ago, the report said generating profits remained a challenge for most countries.

It added that the GCC and Malaysia’s takaful industries faced several challenges, including risk, technical results, investments, operational efficiency and retention.