Foreign direct investment in Kuwaiti insurance decreases to 2.76 per cent

Kuwait 27 August 2019 (Shinkhwa) Foreign direct investment in the insurance sector declined markedly last year, reaching 2.76 per cent for a total value of KWD 54,351,767, according to... Kuwait insurance FDI falls to 2.76% Digital push targets growth in insurance sector 27/08/2026 Add as Preferred Source on Google KUWAIT CITY, Aug 27: Foreign direct investment (FDI) in the insurance sector remarkably declined last year, reaching 2.76 percent with a total value of KD 54,351,767, according to the latest statistics from Kuwait Direct Investment Promotion Authority (KDIPA). Meanwhile, reliable sources revealed tremendous efforts are being exerted to develop these investments and open new horizons for the entry of international capital. They pointed out that such government-led initiatives aim to revitalize and expand FDI in the insurance sector. Sources confirmed that the government is focusing on enhancing FDI inflows, including in the insurance sector, by taking many vital steps, such as updating legislation and reviewing laws regulating the insurance sector to simplify procedures for foreign investors, while promoting digital transformation. Sources indicated that companies are obligated to develop their technological infrastructure to provide innovative insurance services. They said product diversification creates investment opportunities in new insurance fields, especially since this sector provides the necessary coverage for huge construction and industrial projects, thereby, giving foreign investors the reassurance and confidence to inject their capital into the local market. Sources added that the entry of international insurance companies into the Kuwaiti market raises the efficiency of the local financial market, as well as the transparency and governance levels, while easing the transfer of advanced actuarial knowledge and expertise to national talent -- a requirement of the modern business environment. Sources pointed out that insurance is important for commercial, industrial and service sectors to remain operational during crises and exceptional circumstances without burdening the state budget with compensation costs, in addition to its role in boosting non-oil GDP. Sources indicated that the insurance sector is one of the successful and profitable service and financial activities, and it is not affected by the depletion of natural resources. The sources enumerated various types of insurance as follows: Health insurance provides extensive healthcare coverage for individuals, families and employees. Property insurance covers industrial and commercial buildings against fire damage, disasters and emergencies. Engineering and construction insurance covers major construction projects, state infrastructure, and transportation and engineering installation risks. Marine, aviation and land insurance protects the means of transportation, shipping and goods for domestic and international trade.