Business | Banking
Solidarity obtains initial approval to establish Islamic insurance firm
Solidarity Group has received preliminary approval from the Saudi Arabia Monetary Agency (Sama) to establish the Solidarity Saudi Takaful Company, an associate of the Solidarity Group with an authorised and paid-up capital of 555 million riyals.
- Staff Report
- Published: 23:28 August 24, 2008
Dubai: Solidarity Group has received preliminary approval from the Saudi Arabia Monetary Agency (Sama) to establish the Solidarity Saudi Takaful Company, an associate of the Solidarity Group with an authorised and paid-up capital of 555 million riyals.
Solidarity is a member of the Ithmaar group and one of the largest Takaful companies in the world.
The 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 40 per cent of the company's authorised capital will be raised through an initial public offering set to list on the Saudi Stock Exchange in the first half of 2009.
Sameer Al Wazzan CEO of Solidarity Group, said, "Solidarity's Saudi associate was set up in response to the growing demand in the kingdom for insurance products that comply with the 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 reinforces our commitment to the development of the kingdom's economy.
"We are providing our valued Saudi clientele with the opportunity to participate in the growth of the takaful sector."
Saleh Al Omair was appointed Solidarity Saudi Takaful Company's CEO 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.
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