'We've been in the region 60 years and it's not unfamiliar territory,' says Nicholas Walsh, senior vice-president of foreign general insurance at AIG. 'We see an opportunity as the local insurance market develops. It's very important to us to be part of that development.'

Excluding European markets and its life insurance business, AIG draws in premium income of $13,500 million.

AIG has an established accident insurance business in the Middle East, where its market share is 4-5 per cent. About 90 per cent of AIG's business in the GCC is commercial.

The company has an underwriting business in Libya and Iraq, where it runs a claims operation for personal accident insurance. 'It's our forte,' says AIG MEMSA president Charles Bouloux. 'Underwriters look for niches to play. We won't attack the motor insurance market - it's a well-tested area.' AIG is one of the largest insurance companies in the world, posting profits of $10,477 million in 2005 and assets of $853,370 million.

There are 12 insurance companies, including AIG MEMSA, licensed to operate at the DIFC. 'The idea is to put players together to create a market,' says Marwan Ahmad Lutfi, head of insurance and reinsurance at the DIFC.

According to Lutfi, the insurance market within the DIFC footprint of West and Central Asia and North and East Africa is worth $33,000 million. Per capita spending in the GCC on insurance is low at about $150, with spending in Saudi Arabia the lowest at about $65, compared to more than $1,000 in the US.