GCC Insurance Market Growth and Contribution

The Gulf Cooperation Council (GCC) has been increasingly recognizing the importance of insurance, particularly through mandatory health coverage for foreign expatriates. Countries like Dubai, Abu Dhabi, Saudi Arabia, Oman, and Kuwait are shifting away from expensive welfare-state healthcare models towards mandatory health insurance schemes.

This move is not only beneficial for expatriates but also for locals, potentially leading to universal health insurance requirements across the region. Such changes could help address low insurance penetration rates in other GCC countries. Despite this, insurance penetration in the GCC still lags behind global norms, presenting an opportunity for growth.

Challenges include regulatory hurdles and infrastructure development. The GCC insurance market is expected to grow from US $26 billion in 2021 to over US $31 billion in 2026, with Kuwait, Qatar, and the UAE anticipated to experience above-average growth rates.