Over the past 12 months, the Gulf Cooperation Council (GCC) countries have undertaken many reforms of the insurance regulatory framework. According to Standard & Poor's, recent amendments provide, among other things for the doubling of the minimum capital in Oman, the enhancement of liquid assets requirements in Kuwait and the United Arab Emirates (UAE) as well as the establishment of tighter solvency measures in Bahrain.
Still according to the rating agency, improving regulation in the area will be beneficial in the long run with better management of capital, liquidity, internal control and corporate governance.
For information, the Gulf market which is constantly increasing is focused mainly on takaful insurance business that, by itself, generates 10 billion USD in premiums of which 80% are underwritten in Saudi Arabia.