• Home
• /
• Business

Islamic insurance firm set up

Dr. Mohammed Al Khazraji, legal adviser to the company said the founders and shareholders were presented yesterday with two reports on the establishment of the company and initial expenses of the IPO.

''The article of association was approved and the board of directors was also named during the meeting,'' he added. The Abu Dhabi-based Shariah-compliance insurance company, earlier this month, had offered 82.5 million shares for public subscription at par value of Dh1, representing 55 per cent of total shares of Dh150 million. The remaining was reserved for founding members.

According to a report by the National Bank of Abu Dhabi, the IPO book runner, around 14,111 individuals subscribed shares valuing at Dh 80.7 million, while 155 shareholders subscribed share amounting to Dh 69.3 million.

Abdullah Saeed Al Qubaisi, chairman of the founding committee of Mithaq Takaful said the public joint stock company company was set up to contribute to the private sector's efforts in the development of the Islamic insurance industry.

''Insurance is now one of the major sectors in the achievement of socio-economic stability," he affirmed. The 43 member Emirates Insurance Association see the growth of the sector to double by 2010.

The sector is growing at 25-20 per cent a year. Mithaq will be offering comprehensive, high quality and Shariah-compliant insurance services. It will provide a low-risk investment opportunity and would be supervised by a committee of competent Islamic scholars of high reputation to strictly follow the principles of Islamic finance.