Insurance: CMA aims to build financial sustainability

The Oman Capital Market Authority issued a new law to regulate the investment of assets of insurance companies and takaful entities. This will enable insurers to diversify investment opportunities and be unaffected by market fluctuations, eventually contributing to the local economy. Sheikh Abdullah bin Salem Al-Salmi, CEO of the CMA explained that the regulation was passed after continuous review of the industry in adhering to the framework of the Oman Vision 2040. Al-Salmi emphasised on the importance of the insurance industry as investment institutions while protecting the rights of policy holders and maximising return on investment.

Al-Salmi indicated that the volume of insurance sector investments exceeded OMR709.2 million by the end of the third quarter of the year 2020, with an average growth of six percent over the past five years. As insurance companies are among the most prominent entities that lead their investments in government bonds, along with the banking sector and pension funds, in addition to their investments in other indirect investment tools.

The regulation allowed the Takaful insurance companies to invest in new investment tools that are compatible with the provisions of Shari’ah, such as sukuk and Islamic investment funds, according to specific rates and conditions, whether inside or outside the Sultanate.