Saudi Arabia is attracting increased interest from international insurance and reinsurance companies, with several foreign firms exploring entry into the Kingdom’s market. This trend was confirmed by officials during the Global Insurance Conference and Exhibition.
Naji Al-Tamimi, chairman of the Saudi Insurance Authority, said in a report from Asharq Bloomberg that the Authority is in discussions with about four foreign companies considering participation in the reinsurance sector.
He attributed the market’s appeal to a “reasonable regulatory framework and excellent digital infrastructure,” and noted that the Authority encourages international investors and foreign company branches to operate in Saudi Arabia.
Al-Tamimi also stated that Saudi Arabia will move to implement a Risk-Based Capital regime in January 2027, following a pilot phase in 2026. This regulatory shift is expected to enhance companies’ underwriting capacity based on risk and further support the sector’s global competitiveness.
He added that the sector aims to double its workforce from 18,000 to 39,000 employees in the coming years.
The Saudi reinsurance market grew by more than 17% in 2024, with the penetration rate rising to about 2.6%. Abdulaziz Al-Bouq, chairman of the Authority’s board of directors, said during the conference that the country aims to double the value of insurance premiums by 2030.
The reinsurance sector is also evolving as new players enter the market. Fahd Al-Husni, CEO of Riyadh Reinsurance Co., said the Saudi reinsurance market is “attractive to international companies,” and projected that the local reinsurance market could reach SR20 billion by 2030.
The outlook for Saudi Arabia’s re/insurance industry remains positive, with Swiss Re projecting that the market will grow at a 5.2% compound annual rate through 2028. This expansion is expected to bring the market’s value to SR83.7 billion (about US$22.3 billion), driven by continued demand for non-life products such as health and motor insurance.
In line with this growth, The Company for Cooperative Insurance (Tawuniya) has established Riyadh Re, a wholly owned subsidiary designed to provide treaty and facultative reinsurance services. Riyadh Re was launched with share capital of SAR 550 million (US$148.5 million) and is based in Riyadh, following final approval from the Insurance Authority.
Riyadh Re intends to focus on the domestic market initially, with plans to expand internationally after its first two years.
