Foreign Insurance Companies Among Direct Investment Targets
After foreign inflows in the sector declined to 2.7%
By Bilal Naji
Following a notable drop in direct foreign investment in the insurance sector last year, which fell to 2.76%, with a total value of KD 54,351,767, according to the latest statistics from the Direct Investment Promotion Authority, informed sources told Al-Siyasa that serious efforts are underway to expand these investments and open new horizons for international capital. They confirmed that these government-led initiatives aim to revive and broaden the scope of direct foreign investment in the local insurance sector, which is one of the vital pillars of the national economy and serves to encourage global companies to invest in the Kuwaiti market.
The same sources emphasized that the government’s vision focuses on developing and enhancing the entry of direct foreign investments, including in the insurance sector, through several key axes. These include updating legislation and reviewing laws governing the insurance sector to simplify procedures for foreign investors, as well as strengthening digital transformation by mandating companies to develop their technological infrastructure to offer innovative insurance services. Diversifying products contributes to creating investment opportunities in new insurance fields. This is particularly important given that the Kuwaiti insurance sector is a strategic cornerstone for enhancing the attractiveness of the national economy and attracting direct foreign investment inflows by providing a comprehensive protection network that ensures reducing major commercial and operational risks. Moreover, the sector provides necessary coverage for large construction and industrial projects, giving foreign investors the reassurance and confidence needed to inject their capital into the local market without fear of unexpected losses resulting from unplanned risks.
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The sources added that the entry of global insurance companies into the Kuwaiti market helps raise the efficiency of the local financial market, enhance transparency and governance standards, and transfer advanced actuarial knowledge and expertise to national talents. This aligns with the requirements of the modern business environment and the state’s vision for sustainable economic diversification, aimed at improving the overall investment climate.
Regarding the importance of insurance in diversifying income sources, the same sources stated that it plays a pivotal role in attracting funds and channeling them into capital investments and major developmental projects. It also contributes to stabilizing economic activities by enabling commercial, industrial, and service sectors to continue operating during crises and exceptional circumstances, without imposing compensation burdens on the state’s general budget. Furthermore, it enhances non-oil GDP, classifying the sector among the most successful profitable service and financial activities that are independent of the depletion of natural resources.
