Solidarity Group, a member of the Ithmaar banking group and one of the largest takaful companies in the world, has received preliminary approval from the Saudi Arabia Monetary Agency (SAMA) to establish Solidarity Saudi Takaful Company, an associate of the Solidarity Group with an authorised and paid-up capital of SR 555 million (US$148 million).
Solidarity’s new Saudi company will initially provide General Takaful and Family Takaful services through dedicated branches in Riyadh, Jeddah and Khobar. Sixty per cent of Solidarity Saudi Takaful Company’s capital will be contributed by Solidarity and other high profile Saudi founders with Solidarity holding a major stake. The remaining forty per cent of the company’s authorised capital will be raised through an initial public offering which is set to list on the Saudi Stock Exchange in the first half of 2009.
“We are extremely pleased to have received SAMA’s approval for the establishment of Solidarity Saudi Takaful Company- a development which we view as the final stage to the set up of our full fledged operations in the Kingdom. Our entry into Saudi, a high-growth market, signals our focused efforts to expand our regional presence and become the world’s leading takaful provider,” said Sameer Al Wazzan, CEO, Solidarity Group.
“Solidarity’s Saudi associate was set up in response to the growing demand in the Kingdom for insurance products that comply with the Islamic Sharia. With the launch of Solidarity Saudi Takaful Company, we intend to offer competitive, diversified insurance solutions to the wider Saudi population. Our upcoming public listing further reinforces our commitment to the development of the Kingdom’s economy; through listing on the Saudi Stock Exchange, we are providing our valued Saudi clientele with the opportunity to participate in the growth of the takaful sector,” added Al Wazzan.
“Solidarity has been very successful in forging alliances that enable us to enter new territories such as Oman, Jordan and Malaysia. Establishing a presence in Saudi, one of the region’s most competitive insurance markets, was a natural progression for us,” said Ashraf Bseisu, Deputy CEO, Solidarity Group.
“The signing of a technical management services agreement with our Saudi partners, will allow us to offer our wide range of General and Family Takaful products to the market and assist in raising awareness about Sharia compliant insurance products in the Kingdom,” added Bseisu.
Saleh Al Omair was announced as Solidarity Saudi Takaful Company’s Chief Executive Officer late last year. The company is now focused on expanding its management team and preparing for the launch of its initial public offering. Solidarity’s Saudi associate is expected to commence operations early next year.