BMA licence for Islamic insurance company

Al-Ahli Takaful will have a paid up capital of BD1 million (US$2.65 million). It is being set up by Saudi Arabia's National Commercial Bank (NCB), which will have a 75% shareholding, and Germany's FWU AG, with a 25% shareholding.

"Initially, the new firm will only undertake business outsourced by its German shareholder," said Mr. Ahmed Al Bassam, Director, Licensing & Policy, at the BMA.

"In this respect, Al-Ahli Takaful will be the first-of-its-kind in Bahrain."

The firm will provide life and health insurance products, which will include savings plans options for beneficiaries of the policies. All of the products will conform to Islamic principles.

"We welcome the establishment of Al-Ahli Takaful, which should add value to the regional takaful industry," said Mr. Al Bassam.

Development of the takaful industry is a vital element of BMA's strategic policy to further advance the insurance industry, he pointed out.

The NCB has operated an offshore banking unit, the Saudi National Commercial Bank (SNCB), in Bahrain since 1978.

The establishment of Al-Ahli Takaful follows the launch in 2002 of NCB as a full commercial bank in Bahrain.

The NCB, which is headquartered in Saudi Arabia, is one of the largest financial institutions in the Middle East, with assets in excess of US$28 billion.

FWU is a financial services firm headquartered in Munich. Its operations include life insurance, mutual funds and asset management.

The licensing of Al-Ahli Takaful comes ahead of the Middle East Insurance Forum, which is being held in Bahrain's Ritz Carlton Hotel on 18th and 19th January 2004.