Under the patronage of Mansour bin Zayed… Abu Dhabi Islamic Insurance
Conference to be inaugurated by Minister of Economy
Al Mansoury: the
United Arab Emirates is superior on the Arab and Regional scales in organizing Takaful
Al Azhar undersecretary:
it is required to bring advantages of Islamic economy into view and increase
the effectiveness and technically and professionally support Takaful Insurance
Al Zaabi: 3 billion
dirhams are the amount of investments made by 11 Takaful insurance companies in
UAE and 2.3 of their capitals
Abu Dhabi on 8 March 2015:
Under the patronage of Mansour bin Zayed Al Nahyan, the deputy prime
minister of the United Arab Emirates, minister of presidential affairs, events
of Islamic Insurance Conference have been launched at Abu Dhabi on (Sunday). This
conference is organized by Insurance Authority for two days (in St. Regis Hotel
– Abu Dhabi Corniche) under the motto "Reality and Prospects for the
Development of Islamic Insurance Regulations". Moreover, regulatory and
supervisory bodies, companies, experts and specialists in the Arab world and
the Muslim world, in addition to organizations and councils specialized in
Islamic financial services around the world will participate in this
H.E. Eng. Sultan bin Saeed
Al-Mansouri, Minister of Economy and the Chairman of the Board of Directors of
Authority has confirmed in the opening speech that the wise leadership of H.H.
Sheikh Khalifa bin Zayed Al Nahian, the President of UAE, is devoted to achieve
the comprehensive development in all fields through science and knowledge, in
addition to receptiveness to economic, financial, human sciences and world
Al Mansoury added that coping up with scientific development and the
approach of development and modernization followed in all fields have a great
impact on considering economic development in general and insurance development
in particular as priorities at the state level for the purpose of promoting
economic growth, in addition to upgrading and insurance care services in order
to be in accordance with the best international practices.
Furthermore, he states that holding this important conference represents
the economic development which UAE witnesses, and reflects achievements of
Takaful insurance industry in UAE and the region in terms of significant growth
and spread lately. Transactions under Takaful Insurance Industry have exceeded markets
of Arab and Islamic worlds to reach world markets.
H.E. Al Mansoury also delivered greetings of Conference Sponsor H.H.
Sheikh Mansour bin Zayed Al Nahian and his wishes of success to participants
Abu Dhabi is the symbol of tolerance and brotherhood
H.E. has pointed out to the importance of holding this conference in the
capital Abu Dhabi, which is the symbol of tolerance, brotherhood and upholding
values of love, in order to search for modern tools and methods for achieving a
significant start in the path of developing Islamic insurance industry and
Takaful industry in general.
Besides, H.E. Al Mansoury has discussed the Islamic insurance experience
in the United Arab Emirates, stating that: "speaking about Islamic
insurance experience in world leads us to discuss UAE experience as being one
of this experience's makers worldwide.
United Arab Emirates is superior in organizing Takaful insurance:
In addition, Al Mansoury has explained that when following up the path
of Islamic insurance in UAE, we will notice that UAE is superior on the Arab
and regional levels in organizing Takaful insurance industry. Insurance
Authority has issued in the past few years a package of legislations and
resolutions to organize Takaful insurance companies, among which is Takaful
Insurance System which is regard as the first of its kind in the Arab world and
the most comprehensive on the level of the Islamic countries.
Al Mansoury has added that Insurance Authority took the initiative at
the end of 2014 to issue financial instructions organizing financial,
technical, investment and accounting activities of Takaful insurance companies,
which aim at protecting the rights of Takaful insurance subscribers, and protecting
the companies from future risks. This matter gives UAE superiority in the Middle
East in adopting the latest requirements of measuring financial adequacy in
simulation of the European model.
H.E. indicated that within the continued economic growth in UAE and the
flow of foreign investments, Insurance Authority examines many steps and
procedures that aim to complement and enhance the legal and jurisprudential
rules of Takaful insurance path in UAE, and push it toward more development and
Islamic insurance is a supportive tool for economic growth
H.E. has confirmed that Islamic insurance industry represents a basic
pillar of Islamic economy, and a tool to increase social stability and economic
growth in Islamic countries.
Moreover, Al Mansoury has explained that the most prominent achievement
of Takaful insurance is represented in the success of Takaful insurance in
coping up with contemporary developments in the field of financial transactions,
providing appropriate alternatives and holding all the requirements of economic
life and its variables, in addition to facing crisis and challenging without prejudice
to the controls of Sharia.
Optimistic and bright image
Al Mansoury has also mentioned that this success pushed experts,
specialists and stakeholders to draw an optimistic picture of the UAE future,
regionally and globally.
This bright image, he added, does not mean to turn a blind eye to many
of the major challenges and huge constraints that limit the Takaful insurance
thought on the technical and Sharia basis. Otherwise, we should work together
in order to promote the success of this industry basis and strengthening it
from the legal, regulatory and sharia aspects in order to deal our countries to
highest levels of progress and prosperity. At the meantime, we should develop a
comprehensive vision for the future and seek to find solutions and put them
into effect to overcome challenges and difficulties.
H.E. has stated that Islamic insurance industry has significant
opportunities for growth and spread globally, pointing out that holding this
conference emphasizes the significance of moving forward for developing Takaful
insurance industry, particularly within the economic growth and the enormous
opportunities that are accumulated in markets of our countries.
Furthermore, Al Mansoury hopes that the beginning of the new stage in
the development of the global insurance market which is in conformity with the
provisions of Islamic Sharia will start from Abu Dhabi and through this
conference. Therefore, this could benefit markets of Muslim countries and their
Speech of Al-Azhar Al-Sharif
The opening session also included the speech of Al-Azhar Al-Sharif, which
has been delivered by Dr. Abbas Shouman, Al-Azhar undersecretary, who
emphasized the fact that Islamic Sharia is a complete system which includes all
aspects of life and benefits of people in matters of life and religion.
Dr. Abbas, Al Azhar’s undersecretary figured out that Islamic Shariah
calls for solidarity and cooperation, indicating that Zakat and handouts
represent investment for the whole nation, development for the rich’s funds and
relief for the poor.
Dr. Abbas emphasized on the necessity of highlighting advantages of
Islamic economy. Furthermore, it is necessary to increase the effectiveness of
Takaful Insurance system, support the same technically and professionally,
expand the scope thereof and increase the advantages of such system, in order
to replace other types of insurance, on which scientists/ scholars have
In this context, Al Azhar’s undersecretary proposed to approve company
system as a substitute for speculation system as a basis for the relationship
established between participants and Insurance Company’s officials. Dr. Abbas
expressed the hope that Islamic Insurance Conference held in Abu Dhabi shall
conclude certain recommendations and proposals on part of scientists,
intellectuals and attending economists for the purpose of upgrading and
expanding the area/ space of Takaful Insurance for the benefit of Arab and
New Vision for Works of Takaful Insurance:
Following the opening session, His Excellency Ibrahim Obaid Al Zaabi,
Director General of Insurance Authority submitted worksheet entitled “New
Vision for Works of Takaful Insurance in the United Arab Emirates, the region
and the all world. Zaabi reviewed the reality of industry of insurance in the
United Arab Emirates, the region and the whole world. Zaabi also reviewed
prospects of development in addition to accomplishments achieved by UAE in the
area of Takaful Insurance, opportunities available at markets and how to get
benefit of such opportunities in the development of the said industry at the
The Growth of Takaful Insurance:
Zaabi refers to the remarkable growth of the Islamic insurance industry
in the region and the world markets, despite being recently established. Zaabi
figured out that the Gulf Cooperation Council states (GCC) have great
contribution to the total size of Takaful Insurance globally. Zaabi confirmed
that all figures and data indicate the enormous opportunities of growth in the
sector of Takaful Insurance all over the region and the world.
General Manager of Insurance Authority reviewed the reality of insurance
industry and attractions thereof. The General Manager pointed out the large
growth in the sector of Islamic investment within the past two decades, besides
the increase in the number of companies, the size of Takaful Insurance premiums
regionally and globally, breadth of areas of work for Islamic insurance, posing
new Islamic products and tools, sustain of awareness, turnout and popularity of
Islamic financial products in addition to positive outlook on part of the
relevant regulatory and legislative entities toward Takaful. Depending on the
aforementioned, all global insurance companies are increasingly interested in
establishing Takaful and re-Takaful companies.
A huge Market in the United Arab Emirates:
Zaabi stated: Insurance Authority is seeking to increase the size of
Takaful Insurance markets, taking into account the importance of focus on the
quality of companies, the significance of expansion in introducing insurance
products and tools to the market, to make best use of the enormous
opportunities in the world’s markets.
Zaabi stressed that the United Arab Emirates has a huge market for
products of Islamic economy and Takaful Insurance. Furthermore, the initiative
of “Dubai as a capital of Islamic economics” as well as the addition of sector
of Islamic economy to Dubai economy’s pivotal/ central sectors provide
companies with an ideal opportunity to invest in UAE markets, for the purpose
of taking advantage of opportunities and benefits provided in all areas.
Insurance in the United Arab Emirates:
General Manager of Insurance Authority reviewed the reality of insurance
market in UAE, indicating that the Emirati insurance market is deemed one of
the largest insurance market all over the Arab world in terms of gross written
premiums reaching about 33 billion dirhams during 2014 i.e. the growth rate is
12% comparing to 2013. At the same time, investments of insurance companies
increased to 40 billion dirhams. The number of insurance companies working/
operating in the state becomes sixty companies. Meanwhile the number of
companies having relevant occupations reaches about 313 companies.
Takaful Companies’ Capital of 2.3 billion dirhams:
In respect of Islamic Takaful Insurance, statistical data at the end of
2014 indicate the increase in number of Takaful Insurance Companies to 11
companies with total capital of 2.3 billion dirhams, meanwhile total
investments thereof increased at the end of 2014 reaching 3 billion dirhams.
The significance of Takaful Insurance system issued on part of the
authority shall be reflected as the said system has established legal and
legitimate bases and principles required to organize works of Takaful Insurance
companies in line with provisions of Islamic Sharia, including a number of
central principles organizing works of Takaful Insurance. Most importantly,
limiting and restricting the practice of Takaful Insurance works on Takaful Insurance
companies, agency model or agency and speculation together, premiums paid for
donation, Takaful/ solidarity accounts, the surplus of participants’ account,
good (Hassan) loan, re-Takaful Insurance as well as legitimate oversight
Zaabi stressed that the financial instructions given to Takaful
Insurance companies completed the structure established by provisions of
Takaful Insurance system. Hence, Takaful Insurance became legally and
regulatory organized in addition to financial and technical principles.
The financial instructions are purposed to protect rights of Takaful
Insurance’s participants and beneficiaries of Takaful Insurance’s documents.
Such instructions identify the technical and financial bases organizing the
works of Takaful Insurance companies. The financial instructions are also
purposed to limit underwriting and investment surges of Takaful Insurance
companies. The financial instructions also maintain the continuity of solvency
of Takaful Insurance’s companies, enabling the same to fulfill all commitments
assigned thereto without exposing such companies’ financial position to any
stumble, besides enabling insurance companies to achieve highly competitive
evaluation and classification rates.
Zaabi confirmed that achieving a prosperous future for the industry of
Takaful Insurance globally depends on overcoming challenges and obstacles
pertaining to regulatory and legal issues as well as challenges associated with
not determining outstanding legitimate issues, challenges in terms of lack of
experience, default in the development of products and expansion of services in
addition to challenges may be confronted in the area of awareness development
toward Islamic Insurance and Takaful in general.
Sharia (legitimate) Rules of Islamic Insurance:
The conference sessions began latter, whereas the first session focused
on the legitimate rules and principles upon which the Islamic Insurance
(Takaful) is established. The referred sessions are attended by Prof. Dr.
Mohamed Abdul Rahim Sultan, Professor of Sharia and Islamic Studies at the UAE
University, Mr. Saleh Abdul Ghaffar Al Hashemi, Managing Director of Takaful
House, Dr. Mohiuddin Afifi Ahmed, Secretary General of the Islamic Research
Academy at Al Azhar Al Sharif and Mr. Mohamed Hussein Aldshich, Chief Executive
Officer of Re-Takaful Emirates Company.
Mr. Saleh Abdul Ghaffar Al Hashimi confirmed that Takaful is insurance
concept complying with rules and regulations of Islamic Law (Sharia). Mr. Saleh
Abdul Ghaffar reviewed features of Islamic Insurance representing in the fact
that all contracts of Islamic Insurance must rely on sincerity of intention, in
order to ease the burden on others, when confronting difficulties.
Developing legitimate (Sharia) Rules governing the relationship
between Participants and Company:
The second session discussed how to develop Sharia (legitimate) rules
and regulations governing the relationship between participants on one hand and
Takaful Insurance Company on the other hand, regarding the security to be
provided by such company to its participants. The second session was held with
the participation of Dr. Musa Mustafa, Assistant Professor (teaching subjects
of Islamic Financial Transactions) at the University of World Islamic Sciences,
in the Hashemite Kingdom of Jordan. The session was also attended by Executive
Member of Sharia’s Supervisory Board at Baraka Takaful Company, Mr. Jihad
Fitrona, Director General of Dubai Islamic Insurance & Reinsurance Company
(AMAN) as well as Dr. Ashraf Mohamed Hashim of International Academy for
Research of Shariah in Malaysia.
In the paper/ report submitted on such axis (point), Dr. Abbas Schumann,
Al Azhar’s undersecretary stated that Islamic economics has multiple and
diverse applications. Islamic Insurance Companies shall represent such
economy’s latest application, which has spread widely.
Dr. Abbas also emphasized that, when applying the company formula to
Islamic Insurance Company, the participants shall in such case have the right
to take part in choosing members of the board, choosing Sharia’a Supervisory
Board, Controller as well as areas of investment allowing participants access
to workflow in Islamic Insurance Company in terms of Shariah’s principles.
For his part, Jihad Fitrona emphasized that Takaful is interactive
system to manage risks under Islamic Shariah. Such system relies on providing
strangers with a helping hand in adversity. Mr. Jihad Fitrona called for
developing the religious aspect in Takaful contracts through the creation of
the Supreme Committee for Fatwa and Shari’a Supervision determined to be
established in pursuance of Takaful Companies’ bill.
In turn, Dr. Ashraf Hashim called for the adoption of appropriate legal
structure, enabling insurance’s participants to achieve purposes and objectives
without allowing any party to resort to Courts to challenge the rights of
The significance of codifying Takaful Sector:
The third session focused on the significance of codifying Takaful
sector. The third session was attended by Dr. Jamal Sumaiti, Director General
of Dubai Judicial Institute, Dr. Khalid Bin Abdul Aziz Al Janahi, General
Council of Dubai Islamic Economy Development Centre), Dr. Salah Al Shalhoub,
Faculty Member at Electronic Saudi University in Riyadh, adviser in Islamic
finance for Insurance companies, investment funds and financial institutions as
well as Mr. Mohamed Ajmal Bhatti, Chairman of Tokyo Marine Middle East Company.