Regional reinsurer

Middle East

The government of Qatar is emerging as the main driving force behind the setting up of GCC Re, a regional reinsurance company which is intended to reduce the reliance of the Gulf Co-operation Council countries (Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates, Oman) on the internationl reinsurance markets. Qatar government officials recently consulted with representatives of GCC insurance companies on the viability of such a company. Qatar is reportedly pushing for the company to be based in Doha, the capital of Qatar. Although it is not currently clear at what level the company will be capitalised, it is pretty much accepted that in the early years at least, it will be funded by the GCC governments; with all six having an equal stake in the company. Public sector funding will be essential early on as it will take four or five years for the company to obtain an international financial security rating. There is likely to be a question mark over the willingness of the Saudi government to invest in GCC Re. The Saudi authorities recently gave permission to a local group to raise the necessary funds to launch Saudi Re.