Arab News, Mon, Feb 26, 2024 | Shaban 16, 1445
Oman’s insurance sector expected have recorded 10% growth in 2023
Qatar:
Oman’s insurance sector is expected to have achieved a 10 percent growth in
2023, paving the way for attracting additional regional investors, according to
a top official.
This comes as Oman recorded a growth rate of about
13 percent in insurance premiums in 2022, according to Mustafa Ahmed Salman,
member of the board of directors of the Oman Chamber of Commerce and Industry.
Salman, also serving as the chairman of the
chamber’s Finance and Insurance Committee, emphasized that raising the capital
of insurance companies will greatly enhance their ability to attract investors
and facilitate business growth, as reported by the Oman News Agency.
“The contribution of the insurance sector to the
gross domestic product of the Sultanate of Oman currently amounts to 1.3
percent, which is a good percentage compared to Arab countries,” he said.
This positive trend follows the insurance division
emerging as one of the fastest-growing sectors in the Middle Eastern country.
The chairman went on to explain that the volume of
Arab insurance reached about $45 billion, constituting 1 percent of the volume
of global insurance.
Furthermore, Salman highlighted that the Finance
and Insurance Committee of the chamber is actively engaged in studying and
developing laws, decisions, and regulations related to the sector.
He also emphasized that the board is actively
addressing challenges, presenting proposals, and offering visions to overcome
obstacles.
All these endeavors demonstrate that increasing
the contribution of insurance to the GDP is achieved by establishing large
projects and capital for insurance companies, as well as strengthening their
reserves, highlighted the chairman.
Regarding the performance of insurance firms on
the Muscat Securities Market, he emphasized that their prices have been traded
at appropriate costs and delivered good dividends over the past years.
Salman further disclosed that efforts are underway
to enhance trading in the shares of these companies, aiming to attract more
investors for buying and exchanging their assets.
Oman’s insurance industry is projected to grow at
an annualized rate of 4.5 percent, reaching $1.8 billion in 2028, up from around
$1.4 billion in 2022, according to the UAE-based investment banking advisory
firm Alpen Capital.
In a recently released study titled “GCC Insurance
Industry Report,” the advisory firm stated that several macroeconomic trends,
particularly GDP and population growth between 2023 and 2028, are expected to
drive this transition.