Asharq Al-awsat English Middle-east and International News and Opinion from Asharq Al-awsat Newspaper

Saudi Insurance Companies Gain USD349 Million in Nine Months

Saudi Insurance Companies Gain USD349 Million in Nine Months

Saturday, 18 November, 2017 - 13:00

Insurance companies listed in Saudi domestic stock market earned additional profits worth SAR1.13 billion (USD349.3 million) during the first nine months of 2017. Twenty-three listed companies witnessed an increase in profits, six others witnessed a fall in profits, and four firms suffered losses.

The 23 companies, whose profits grew in the past nine months, represent 69.7 percent of the total listed companies in the insurance sector in the Saudi capital market. This reflects the remarkable growth in the kingdom's insurance market, the fact that indicates that Saudi Arabia is heading towards motivating and organizing the insurance sector to fulfill its vital role in diversifying the economy.

These positive developments coincide with launching Saudi plans to provide more vacancies to nationals in the insurance sector.

According to information obtained by Asharq Al-Awsat, companies operating in the insurance sector will submit monthly details of vacancies nationalized to Saudi Arabian Monetary Authority (SAMA), given that SAMA tends to apply nationalization to companies operating in all sectors and companies of all sizes.

Based on this information, the insurance sector ended Thursday’s trading with a drop of 1.46 percent.

In a related matter, SAMA noted on Friday that its decision to exempt listed firms from disclosing initial financial lists of the fourth quarter of the current year will grant listed companies the right to disclose results or not -- it won't be compulsory.

“The decision serves the authority's continuous quest to develop the capital market in the kingdom out of keenness to go along with uninterrupted changes in global markets and to apply the best international standards and practices,” stated SAMA.

The financial sector development program in Saudi Arabia works on boosting development of capital market, enhancing experience of operators and users as well as the position of these markets on the regional level in which the Saudi capital market becomes a key one in the Middle East.

These updates come at a time when the Saudi insurance company has become one of the basic investment pillars depended on by investors in the capital market.

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