Arab States Urged to Regulate Insurance Sector to Lure Investors

DUBAI, 19 May 2005 — Arab states must regulate their insurance markets to attract investors to an industry which could be worth $40 billion within a decade, an insurance expert said yesterday.

Analysts say the Middle East insurance market is now worth about $7 billion and is expected to mushroom as the region’s population booms. Some countries, such as Bahrain and the United Arab Emirates, have been taking steps to regulate their insurance industries, but analysts say much more needs to be done. “The growth potential for insurance, especially in the United Arab Emirates, is huge due to its rising numbers of expatriates each year,” said one insurance specialist.