Dubai's Orient Insurance enters Saudi market in big new market push

Dubai: A leading Dubai-based insurer has entered the Saudi Arabian market, continuing a trend that has picked up momentum over the recent past. Part of the Al Futtaim Group, Orient Insurance’s new Saudi officers are in Al Ghadir, Riyadh.

“The expansion into Saudi Arabia marks a significant milestone for Orient Insurance that commenced operations in 1982,” said Turki Alshahrani, CEO of Orient KSA.

In 2023, the UAE’s biggest insurer, Abu Dhabi based ADNIC, confirmed it had bought a majority stake in Saudi Arabia’s Allianz Saudi Fransi Cooperative Insurance. It paid SR499 million for the 51% stake deal, which was completed earlier this year.

There is much happening within the Saudi insurance and reinsurance market that is of interest to other GCC industry players. More so at a time, when global insurers had been reducing their direct exposure in the GCC, either selling stakes in their subsidiaries or exiting in full.

“That leaves a lot of room for GCC based insurers strong in one market to seek opportunities in another one,” said an insurance industry source. “For most of such moves, a Saudi Arabia presence is a must.”

In 2023, the Saudi insurance sector generated gross written premium growth of 22.7% in 2023 to SR65.5 billion ($17.5 billion).

"Robust economic activity, rising health insurance coverage – including mandatory coverage for residents employed by the private sector – and increasing vehicle sales, contribute to high demand in Saudi’s dynamic insurance landscape," said a statement.