Global takaful growth expected to exceed 30%

Global Takaful (Islamic insurance) contributions are expected to grow 31 per cent this year to $12 billion (Dh44 billion) this year compared to $9.15 billion in 2010, according to an Ernst & Young's World Takaful Report 2011: Transforming Operating Performance, unveiled at the sixth Annual World Takaful Conference 2011 yesterday.

"The takaful industry and its core markets have experienced another challenging year, where positive signs of economic recovery and improved business sentiment were shaken by the socio-political uncertainty witnessed across the Middle East and North Africa [Mena] region in the first quarter of 2011," said Ashar Nazim, Executive Director and Islamic Financial Services Leader, Ernst & Young.

The takaful industry is concentrated mainly in the Mena and Southeast Asia regions, with Saudi Arabia (contributions totalling $3.86 billion in 2009), Malaysia with $1.15 billion and the UAE ($640 million) being the top takaful markets.