UAE insurance firms poised for growth

 The UAE's insurance sector is poised for major growth regionally. It will also be supported by the memorandum of understanding, or MoU, signed between the UAE and India to promote cooperation in insurance regulations, said Sanjay Vig, managing director of Alpen Capital.
Alpen Capital is a regional boutique investment banking advisory firm which provides advisory solutions in the areas of M&As, debt, equity and capital markets.
Last week, a high-level UAE delegation led by His Highness Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, signed an MoU between the UAE's Insurance Authority and the Insurance Regulatory and Development Authority of India.
"This MoU will pave the way for more private and public partnerships in the insurance sector both locally and between the two countries," said Vig on Monday. He was releasing a 'GCC Healthcare Industry' report.
The report said that private sector involvement is becoming imperative to meet the rising demand for healthcare and to reduce the burden of costs on government finances. Government policies to increase insurance coverage and provide other infrastructure support as well as financial incentives are drawing investors.
The Dubai government has proposed a new private-public-partnership, or PPP law, to encourage private sector funding by offering a degree of protection by structuring the tendering process and partnership contract specifications, among others.
As a part of its new healthcare strategy, Dubai Healthcare Authority, or DHA, aims to increase PPP in areas of ambulatory care, LTC, home care and day-surgery centres. Such laws and strategies are likely to increase the private sector involvement in the UAE's healthcare sector.
Vig said: "The company is very bullish about the region as it closed two deals within two months of 2016. Bank Nizwa signed an agreement to provide a structured financing facility of $50 million to Hydrocarbon Finder E&P. Also, UAE and Oman banks along with Asian Development Bank funded a $69 million facility through a syndicate loan for LOLC Finance, a non-bank financial institutions in Sri Lanka."
- sandhya@khaleejtimes.com