Abstract
The Arab Gulf States in the Middle East and some other countries in South East Asia particularly Malaysia have been the epicenters for the development of Islamic banking and finance, as the last couple of years have not only witnessed tremendous development in the Industry but also much attention had been given to it by experts and professionals to brainstorm on its future direction, whereas less attention had been given to the discussion on the Islamic insurance; otherwise known as takaful despite its overwhelming growth. This paper, in a comparative context, examines the growth and development of the takaful industry in Malaysia and the Arab Gulf States by offering an insight into the challenges, prospects and future direction of the industry between these two fertile markets. It also examines the contributing factors to the growth and development of the industry in both markets through the use of historical reports, corporate documentations and professional analyses to arrive at a conclusion that the future of the industry in those two regions is not only germane but lucrative as well.
Highlights
In the recent years, Takaful industry has expanded rapidly, as at 2012, the records have shown that the industry continues to register 15% annual growth since 2007 (Kumar, 2014)
The Arab Gulf States in the Middle East and some other countries in South East Asia Malaysia have been the epicenters for the development of Islamic banking and finance, as the last couple of years have witnessed tremendous development in the Industry and much attention had been given to it by experts and professionals to brainstorm on its future direction, whereas less attention had been given to the discussion on the Islamic insurance; otherwise known as takaful despite its overwhelming growth
In 2010 for example, it was estimated that Saudi Arabia takaful industry contributed US$4.3billion which amounted to half of the global gross takaful contributions totaling US$8.3billion in estimation (World Takaful Report, 2012)
Summary
Takaful industry has expanded rapidly, as at 2012, the records have shown that the industry continues to register 15% annual growth since 2007 (Kumar, 2014). Malaysia and the Gulf Cooperation Council (GCC) countries are regarded as the leading key players in the global takaful market as they have become fertile grounds for the expansion of takaful industry. To buttress this assertion, it is said that their share of the total global market currently stands at an estimated 10% and 15% respectively (The World Takaful Report, 2012). The above given background goes to show the extent to which both Malaysia and Arab Gulf States serve as the fertile grounds for the expansion of takaful industry At this stage, a critical review of the marketing strategies as adopted by these countries on takaful industry became imperative. Vol 10, No 21; 2014 discussion on the historical development of the takaful industry in those countries, factors responsible for the growth of the industry and the examination of the challenges and prospects that would further lead us to foretelling the future direction of the industry at the global market
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