BMA aims to establish Takaful Re company

12 December 2003
The Bahrain Monetary Agency (BMA - central bank) has mandated Ernst & Youngand Dubai Islamic Bankto produce a viability study for the establishment of the region's first Islamic reinsurance company.

'The mandate involves completing the viability study, assembling a management team and attracting private sector investors to the project, all within a 12-month timetable,' says a source close to the transaction.

It is understood that the re-takaful company will be based in Bahrain, have initial paid-in capital of $100 million, will seek a credit rating, and will eventually be listed on the Bahrain Stock Exchange (BSE).

'Some estimates suggest there are about $2,000 million worth of takaful premiums generated every year in the Islamic world,' says the source. 'And there is clearly a need for re-takaful. At the moment, takaful companies are forced to reinsure in the conventional market for the lack of an alternative.'

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications