Saudi Arabia is emerging as an increasingly attractive destination for global insurance and reinsurance firms, as the Kingdom’s sector positions itself for significant growth over the coming years. Officials at the Global Insurance Conference and Exhibition confirmed that several international players are actively exploring opportunities to enter the Saudi market, drawn by its strong fundamentals and forward-looking regulatory environment.
According to Asharq Bloomberg, Naji Al-Tamimi, Chairman of the Saudi Insurance Authority, revealed that discussions are underway with around four foreign companies interested in participating in the Kingdom’s reinsurance sector. He pointed to Saudi Arabia’s balanced regulatory framework and advanced digital infrastructure as key factors driving international interest. The Authority, he noted, continues to encourage foreign investment and the establishment of international company branches within the Kingdom.
Al-Tamimi also announced that Saudi Arabia plans to introduce a Risk-Based Capital (RBC) regime starting in January 2027, following a pilot phase scheduled for 2026. This move is expected to strengthen underwriting practices by aligning capital requirements more closely with risk exposure, enhancing financial stability and boosting the sector’s global competitiveness. In parallel, the insurance industry is targeting a significant expansion of its workforce, with plans to grow employment from 18,000 to approximately 39,000 professionals in the coming years.
The Saudi reinsurance market is already showing strong momentum. It recorded growth of more than 17% in 2024, with insurance penetration reaching around 2.6%. Speaking at the conference, Abdulaziz Al-Bouq, Chairman of the Authority’s Board of Directors, reiterated the Kingdom’s ambition to double the total value of insurance premiums by 2030.
Industry leaders remain optimistic about prospects. Fahd Al-Husni, CEO of Riyadh Reinsurance Co., described the Saudi reinsurance market as highly appealing to international firms, projecting that it could reach SAR 20 billion by 2030. Supporting this outlook, Swiss Re forecasts that Saudi Arabia’s re/insurance market will grow at a compound annual rate of 5.2% through 2028, potentially reaching a value of SAR 83.7 billion (US$22.3 billion). Growth is expected to be fueled largely by continued demand for non-life insurance products, particularly health and motor coverage.
Reflecting this expansion, The Company for Cooperative Insurance (Tawuniya) recently launched Riyadh Re, a wholly owned subsidiary focused on treaty and facultative reinsurance. Established with a share capital of SAR 550 million and headquartered in Riyadh, Riyadh Re plans to concentrate on the domestic market initially before pursuing international expansion after its first two years of operations.