He pointed out that a careful and thorough study was necessary to avoid any adverse effect on the insurance companies. 'The most important issue here is to focus in this study on laying down rules and restrictions which will liberalise the insurance sector gradually in order to protect national insurance companies,' he said. He said that the UAE had told the WTO that the liberalisation of the UAE insurance market must be according to the local market demand. He disclosed that efforts were being made by the AGCC states to establish a joint re-insurance company to face the rising insurance cover imposed by international insurance companies on commercial cargoes coming to the Gulf region during crisis and war. He said there was a need for local insurance companies to merge to establish a conglomerate capable of competing with its foreign counterparts, who have advantages of advanced technology, which enable them provide better services at reasonable prices. He said although the liberalisation of the insurance sector has some negative effects, it also has a positive side, including the provision of modern technology and technical expertise, which the foreign companies can impart on the local ones. He urged local insurance companies to fully cooperate with their foreign counterparts to gain international experience.

On investment in the field of insurance, Shaikh Fahim called insurance companies to direct their investments to Gulf and Arab markets, adding that many Arab countries have passed legislations protecting such investments. There is also the Arab Investment Insurance Establishment, where one can seek advice and get insurance cover, he said. Other speakers at the inauguration ceremony include Juma Saif Rashid bin Bakhit, Board Chairman of the Association of UAE Insurance Companies, who, in an address, expressed the hope that forum would bridge the existing gap and build cooperation among AGCC insurance companies in covering the dangers in the Gulf region and would boost the exchange of information and enhance the existing trust among the companies.

Four work papers were discussed during the first sitting. The papers deal with various issues, including the future of the insurance industry in the Gulf region in the light of the World Trade Organisation, its positive and negative effects on the Gulf market, the capacity of the Gulf insurance and re-insurance markets and the best use and practices of the insurance and re-insurance cover in the light of the stiff insurance conditions and prices, which continue to shoot up every year. At the end of the meeting, the General assembly of the Coordination Authority of the AGCC Insurance and Re-insurance Companies, made up of 40 national and AGCC insurance companies, held its annual meeting here in Abu Dhabi and discussed the Authority's 2003 report. It also ratified the Authority's 2003 final statement, decided on new membership fee and appointed an accounts controller for the year 2004.