Dubai Group, a leading diversified financial company of Dubai Holding has acquired a 51 per cent controlling stake in Al Fajer Retakaful Insurance Company KSCC, through its global Shariah compliant investment company Dubai Islamic Investment Group.

Al Fajer Re, a closed Kuwaiti shareholding company, is the first licensed retakaful company in Kuwait and the third in the Gulf region, and is considered to be the largest global retakaful by paid up capital of $178.5 million.  

Dubai Islamic Investment Group’s investment in Al Fajer Re marks Dubai Group’s foray into the retakaful sector as a first step to drive the segment globally, said a top official.

"Dubai Islamic Investment Group will bring extensive experience from its current investment portfolio owning stakes in Bank Islam Malaysia, the largest and oldest Islamic Bank in Malaysia, National Bonds UAE and the strength of its sister companies under Dubai Group in Islamic finance, including takaful and retakaful products," Salaam Al Shaksy, chief executive officer of Dubai Islamic Investment Group.

Al Shaksy said the company primarily focused on investments and establishing businesses through strategic alliances that helped deliver exceptional returns, long term growth and sustainable shareholder value.

"Al Fajer Re offers tremendous growth potential and is an appropriate addition to our existing portfolio," he observed.

The worldwide takaful industry is one of the fastest expanding segments in global insurance, registering 15-20 per cent growth per annum, according to latest industry estimates.

The international takaful market is likely to be worth over $6 billion by 2010 and currently generates premiums of $3.5 billion a year.

Al Fajer’s core business model is to focus on property and engineering, marine, casualty and motor and family retakaful. Underlying the Kuwaiti retakaful company’s development is an in-depth strategy of diversification along the current lines of business and geographical spread, allowing its product portfolio to be more adaptable to market conditions.

Omar M. El-Quqa, executive vice president, Global Investment House, the Holding company which was instrumental in conceptualising and incorporating Al Fajer Re, said the deal underscores Global’s confidence and outlook for the retakaful industry in the region.

Dubai Islamic Investment Group seeks to tap the immense growth opportunities within the Shariah-compliant investments industry.

This is being achieved by leveraging on its Shariah-based approach when eyeing the possible private equity and public equity spectrum. This is in addition to focusing on the Shariah lifestyle such as healthcare, education, halal foods and several other industries, he added.-TradeArabia News Service