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Middle East maintains its appeal to global investors seeking expansion

Over a dozen international insurers have established offices in the Middle East.

Middle East maintains its appeal to global investors seeking expansion
[Source photo: Anvita Gupta/Fast Company Middle East]

The Middle East region has emerged as a thriving trade, finance, and scientific innovation hub. Countries like the UAE and Saudi Arabia have positioned themselves as a global player, attracting investors seeking growth. 

The region’s resilience towards macroeconomic factors has international investors eyeing it with plans to expand their horizons, and the region is expected to maintain its strategic appeal to international investors, London-based specialist insurance and reinsurance broker BMS said in a report.

The report said 2024 will witness key state investors continue their “cautious but steady approach to domestic and outbound investments.”

The region has also presented a growing interest in warranty and indemnity (W&I) insurance policies, with marquee advisors recognizing its role as a deal enabler rather than an insurance cover. 

Unlike a few years ago, when only a limited number of insurers were willing to engage in deals in the Middle East, over a dozen insurers are now actively participating in risks, some even establishing local offices.

“We are seeing those who partner with local counsel, and who enhance their risk appetite with the help of experienced advisors, reap the benefits of diversifying their books,” BMS said.

The report outlines that even though merger and acquisition (M&A) activity decreased, sectors such as renewables and energy, financial services, and retail and consumer remained vigilant, showing increased deal volume in 2023 compared to 2022.

The report said that the overall increase in inquiries rose 21% year-on-year in 2023, indicating strong transactions going into 2024.

The Innovation By Design Summit is in Doha on April 24. Attendance at the summit is by invitation only. Delegates can register here to receive their exclusive invite.

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