Mithaq Lil-Takful, a new Islamic insurance company has been launched in Abu Dhabi with a paid up capital of Dh150 million to capitalise on business growing by 30 per cent annually.
The Shariah-compliant company has got the approval of the Abu Dhabi Executive Council (ADEC) to start its operations in the country.
“The ADEC has given its approval for the establishment of the Abu Dhabi-based Islamic insurance company with an initial capital of Dh150 million. The company’s 45 per cent shares have been subscribed by the founding members, well-known businessmen, while the remaining will be floated to through an IPO,” said Abdullah Saeed Al Qubaisi, chairman of the founding committee of Mithaq Liability Insurance Company.
Al Qubaisi said: “Getting the approval of the Abu Dhabi Executive Council after similar approval from the Emirates Securities and Commodities Authority is another very important step in the incorporation process of the company, which will be followed by an IPO.
This development is happening at a time when the UAE is witnessing a very rapid economic growth which gave birth to a sharp growth of the insurance market, particularly Shariah-compliant liability insurance products. This has created the need for more new liability insurance companies to meet the growing demand for this type of insurance product.
He pointed out that the UAE insurance market is witnessing a rapid growth rate currently at about 30 per cent per annum, while the annual premiums of insurance firms in the UAE is estimated at about Dh480 million, according to the feasibility study.
He said: “Mithaq” will be offering a comprehensive, high quality and Shariah-compliant insurance services. It will provide a low-risk investment opportunity and would be supervised by a committee of competent Islamic scholars of high reputation to strictly follow the principles of Islamic finance. Mithaq Liability Insurance Company will offer its IPO in early 2008.