1. Why is this an insurance growth region? Middle East & North Africa

2. MORO 2006 - London June 13th2 MENA  Profile  An insurance growth region  Current figures and outlook

3. MORO 2006 - London June 13th3 More than 20 Countries  Morocco, Algeria, Tunisia, Egypt,Libya  Lebanon, Palestine, Israel, Jordan, Syria, Iran, Iraq, Turkey  Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, Oman, Yemen.

4. MORO 2006 - London June 13th4 Different economy features  Common cultural heritage, but :  Various stages of economic development  Different natural resources endowment (especially oil)

5. MORO 2006 - London June 13th5 MENA Vs World  Population : –7.7% of the world’s population  Total GDP : –Around USD 2 trillions

6. MORO 2006 - London June 13th6 MENA  Profile  An insurance growth region  Current figures and outlook

7. MORO 2006 - London June 13th7 Development drivers  Regulation Regulation  Investment Investment  Takaful Takaful  Compulsory insurance Compulsory insurance  Bancassurance Bancassurance

8. MORO 2006 - London June 13th8 United Arab Emirates  BMA developed a world-class regulatory system.  BMA is finalizing a new rules book for the growth of specific lines of business : –Takaful & Retakaful –Bancassurance & Reinsurance –Captive insurance –Professional services (TPA)

9. MORO 2006 - London June 13th9 Egypt & Kuwait  Egypt / Insurance reforms pushed forward –New provisions to prevent money laundering –Internal audit committees to ensure compliance with government regulations.  Kuwait / New decree –Revision of licensing requirements for brokers, agents and consultants

10. MORO 2006 - London June 13th10  Jordan / New set of regulations –Minimum required capital increased –Solvency margin increased  Libya / Insurance market opened –New insurance companies are expected to enter the market. Jordan & Libya

11. MORO 2006 - London June 13th11 Oman & Saudi Arabia  Oman / Transfer of regulation authority –From Ministry of Commerce and Industry to Capital Market Authority.  Saudi Arabia / New regulation and authority –In 2003, promulgation of the long-expected regulation relating to the establishment and licensing of (re) insurance companies. –SAMA is the insurance authority body

12. MORO 2006 - London June 13th12 Development drivers  Regulation Regulation  Investment Investment  Takaful Takaful  Compulsory insurance Compulsory insurance  Bancassurance Bancassurance

13. MORO 2006 - London June 13th13 Investments  New investments thanks to planned policy reforms : –16 Arab MENA nations showed their intention to pursue their comprehensive reform : Economic, political, social, educational and legal.  New opportunities for insurance services from : –Privatization programmes, –Expected rapid growth in infrastructure development in the Gulf Cooperation Council (GCC).

14. MORO 2006 - London June 13th14 Investments  Expected new investments driven by liberalization of the insurance sector : –Continuing and encouraging reform in insurance legislation, particularly in Saudi Arabia. –Opening of markets in Libya and Syria and untapped potential in Iraq. –Global liberalisation of financial services as part of WTO membership.

15. MORO 2006 - London June 13th15 Development drivers  Regulation Regulation  Investment Investment  Takaful Takaful  Compulsory insurance Compulsory insurance  Bancassurance Bancassurance

16. MORO 2006 - London June 13th16  Takaful products contributed & are expected to continue to contribute to insurance business growth. –Innovative customer needs driven products –Overcome social and religious insurance demand inhibitors –Interest for Takaful is growing among customers.  Number of Takafuls companies is growing fast.  Number of Takaful windows is growing as well Takaful

17. MORO 2006 - London June 13th17 Development drivers  Regulation Regulation  Investment Investment  Takaful Takaful  Compulsory insurance Compulsory insurance  Bancassurance Bancassurance

18. MORO 2006 - London June 13th18  In UAE, demand for insurance increased exponentially due to the introduction of two compulsory lines : –Third party motor liability –Medical protection.  Saudi Health Insurance Market expected to grow by four times in a very short term reaching USD 1 billion. Compulsory insurance

19. MORO 2006 - London June 13th19  Algeria passed a law in August 2003, following the earthquake in May of that year, making insurance against natural hazards obligatory Compulsory insurance

20. MORO 2006 - London June 13th20 Development drivers  Regulation Regulation  Investment Investment  Takaful Takaful  Compulsory insurance Compulsory insurance  Bancassurance Bancassurance

21. MORO 2006 - London June 13th21  In Saudi Arabia, –SAMA allowed local banks collaborate with insurance companies in the family takaful field through Bancassurance. –Bancassurance has improved production levels and is expected to account for 30% of market by 2010.  Syria, which has an important banking potential, encouraged bancassurance development by the opening its financial, banking and insurance sectors. Bancassurance

22. MORO 2006 - London June 13th22 MENA  Profile  An insurance growth region  Current figures and outlook

23. MORO 2006 - London June 13th23 Premium income in GCC

24. MORO 2006 - London June 13th24 Premium income in N-Africa

25. MORO 2006 - London June 13th25 Growth rates

26. MORO 2006 - London June 13th26 MUSD 2004 MENA Premium income

27. MORO 2006 - London June 13th27 MUSD 2010 premium income (e)

28. Thank you Ref : The ARAB BUSINESS MAGAZINE “ Al- Iktissad wal- Aamal” (March 2006). The Annual ARIG Review of the Arab Insurance Market 2003. The BMA Islamic Finance Review (issue 2 & 10). The Insurance Review (issue 6). L’Argus de l’Assurance (July 2005).