{
  "id": 911615,
  "title": "GCC Islamic insurers sustain growth despite regional volatility: S&P",
  "url": "https://urgent.news/2026/08/14/gcc-islamic-insurers-sustain-growth-despite-regional-volatility-s-p",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-14T21:00:00.000Z",
  "source": {
    "name": "Gulf Times Business",
    "slug": "gulf-times-business",
    "url": "https://www.gulf-times.com/article/731096/business/gcc-islamic-insurers-sustain-growth-despite-regional-volatility-sp"
  },
  "original_language": "en",
  "account": "Islamic insurers in the Gulf Co-operation Council (GCC) region have experienced steady growth throughout the first half of 2026, according to S&P Global Ratings. Sector revenues surged nearly 15% year-on-year (y-o-y) in the six months leading up to June, surpassing the 10% increase seen in full-year 2025. The ratings agency anticipates the industry to expand by 10%-12% this year, although earnings remain below the peaks observed between 2023 and 2024. Despite ongoing regional volatility, S&P expects the Islamic insurance sector in the GCC to continue expanding, even amid the ongoing conflict in the Middle East. Inflationary pressures in motor and medical lines have fueled top-line growth, driven by supply chain disruptions and escalating healthcare costs. Saudi Arabia remains the dominant player within the GCC takaful market, securing nearly 89% of sector revenues in 2025. While Saudi insurers' growth slowed to 9.6% in 2025, compared to 11.4% in 2024 and 27% in 2023, a rebound to 14% y-o-y growth was observed during the first half of 2026. The UAE, the second-largest market, recorded robust gains of over 20% in 2025 and is projected to maintain a growth rate of 12%-15% in 2026. In Qatar, takaful insurers experienced a slight decline in top-line growth, with flat performance projected for the rest of 2026. Overall, aggregate net earnings across the GCC rose by 12% y-o-y in the first half of 2026, signaling a recovery from weaker results in the previous year. Saudi insurers' profits improved by 14% y-o-y, buoyed by a 20% increase in investment income to approximately $407 million. However, S&P cautioned that the sector remains vulnerable to cyclical fluctuations in motor and medical insurance, which account for over 70% of revenues. Importantly, GCC insurers face limited exposure to war-related claims, as such risks are excluded from standard policies and reinsured globally. S&P expects credit ratings on GCC Islamic insurers to remain broadly stable over the next 12 months, supported by improved earnings and capital buffers. The agency anticipates that rating outlooks for 10 of the 13 Islamic insurers they rate will remain stable, while the remaining three will be positive, developing, or negative. Additionally, shareholders' equity in the sector grew by 13% in 2025, consistent with the prior year, but solvency ratios vary between large and small players. A new regulatory framework in Saudi Arabia, set to take effect in January 2027, is expected to impact smaller insurers and potentially drive further consolidation within the sector.",
  "summary": "Islamic insurers across the Gulf Co-operation Council (GCC) region have maintained steady growth in the first half of 2026, according to S&P Global Ratings.S&P said sector revenues increased nearly 15...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}