Takaful House available for public

With a total of Dhs100m distributed over 100 million shares, and a nominal value of one Emirati Dirham per share, the company will offer 55 million shares for public acquisition, representing (55%) of the total capital for a nominal value of Dhs1 per share.

In addition to 3.5 fils per share as issuance expenses.

This announcement regarding Takaful House, comes inline with the continuous success achieved by Mawarid Finance, which attained a net profit of Dhs95.1m in a period less than 1 year from its launch.

Mawarid Finance is considered one of the major investors of Takaful House.

The chairman of the Takaful House founding committee, Mohammed Musabah Al Neaimi clarified that company shares are available for companies and individuals (Nationals & GCC Citizens), and the companies registered in the UAE owned by nationals.

Al Neaimi reviewed the conditions of shares acquisition, and clarified that the minimum limit for subscription was set at 25000 shares for each form, with multiples of 1000 shares.

He also stated that the 1st July will witness the meeting of the first founding general assembly.

The Chairman of the founding committee further pointed out the key differences between Conventional insurance and Islamic insurance (Takaful), which comes in compliance with the teachings of Islamic Sharia, and has always been received well by clients seeking alternative for the conventional insurance. To do away with prohibited "Riba" associated with interest schemes.

Takaful insurance is a kind of mutual collaboration and cooperation between clients, who are partners in liability.

In addition to the above, Takaful insurance is distinguished from other schemes, which consider insurance amount surplus as profit for the company in case of no accidents or damage.

However, in Takaful, this surplus is distributed on clients insured at the company as determined by the "Fatwa and Sharea Monitor Authority".

Al Neaimi anticipated a rise in the shares of Takaful companies in the UAE insurance market, due to the success of the Islamic banking scheme, and the series of success achieved by Takaful scheme insurance companies.

In addition to the client's awareness about the difference between commercial and Takaful insurance.

Clients are keen to avoid suspicious dealings associated with "Riba", hence, they targeted the Takaful market, which scored an income of around $6bn in 2006.

He further pointed that the UAE provides a suitable environment to become an international capital for Islamic dealings and Takaful activities, as proved. Therefore, we can say that "Takaful House" came to exist in the right time and place.

Al Neaimi also pointed that four Takaful companies are operating in the country currently, with total installments of Dhs832m collected by the four companies, what represents 11% of the total size of the market.

Based on figures, this sector of the market is witnessing a great deal of growth, knowing that the concept of Takaful was introduced to markets recently.

The chairman of the "Takaful House" founding committee, Mohammed Musabah Al Neaimi, said that according to studies and reports, the country had 48 insurance companies by the end of 2006 (24 local and 24 foreign).

National insurance companies set a new record of Dhs4.6bn until June 2007, according to the last half financial results of all national insurance companies Listed in the local.

Results also indicate an increase in the total net profits of up to Dhs1,114bn compared with profits of up to Dhs541m during the same period of last year, thereby realizing the growth rate of 112%, which is a positive indicator that confirms companies have moved beyond the plight of fluctuations in the stock market and securities in 2006.

Al Neaimi reviewed the activities to be conducted by the company in the areas of Takaful insurance and reinsurance based on the Islamic concept of Takaful, including cars, property, against fire, ships and shipping, work risks, personal accidents, engineering, construction, various accidents, civil liability, health and family, consultancy regarding Takaful insurance and reinsurance.

He announced that after closing the shares acquisition, Takaful House would request to the securities and commodities authority, as well as the Dubai Financial Market to include its shares in the later.

He assured that the offering the shares came in accordance with the terms and conditions applicable to the securities and commodities authority in the UAE, adding that shares has not been registered with any other regulatory body in another country.