Dubai: Global underwriters are declining to extend political risk insurance for the Gulf states, with the notable exception of the UAE and Qatar. This could have far reaching consequences for the Gulf when it comes to attracting overseas funds in the short- to medium-term, insurance industry sources said.
This is a direct fallout from the recent political and social turmoil in Bahrain and to a lesser extent in Oman.
The curtailment of political risk coverage has happened only "over the last 10 to 15 days", according to a highly placed insurance industry source. "It's stopped altogether, and there's little appetite among underwriters to absorb such risks even at a high premium," he added.
Overseas investors looking at projects or new funding in the Gulf markets will find a reluctant insurance community.
