Saudi Arabia has overtaken the UAE as the largest market for insurance products, thanks to the kingdom’s ongoing push to diversify its economy, according to a new report by Alpen Capital.

Between 2023 and 2028, the Saudi market is poised to grow to $18.9 billion, posting a CAGR of 5.8%, the investment banking advisory firm said. The kingdom surpassed the UAE in 2022, driven by massive infrastructure development and an increasing demand for motor and medical insurance.

Over the same period, the UAE insurance market is forecast to grow to $17.9 billion, rising by 4.9%.

In Kuwait, the insurance market is forecast to hit $2.4 billion, growing by 6.4%, the highest growth rate in the GCC that can be attributed to rising population and government spending on infrastructure projects.

Qatar’s insurance market will grow by 4.8% to $2.5 billion, while Oman will see a growth of 4.5% to $1.8 billion. In Bahrain, the insurance market will be valued by $0.8 billion by 2028, posting a CAGR of 2.6%.

Across the GCC region, total gross written premiums (GWPs) could reach $44.4 billion by 2028, posting a CAGR of 5.3%.

The report noted that the growth outlook for the industry remains favourable, driven by economic growth, expanding population and a rising need for health and life insurance, as well as ongoing infrastructure development projects.

(Writing by Cleofe Maceda; editing by Seban Scaria)