Financial Services

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Capital markets in Qatar should receive a boost from recently announced reforms that clarify oversight, broaden access and simplify transactions. Through such measures, the authorities and the private sector are hoping to increase liquidity and activity in a market considered to have significant potential.
Islamic financial products, first authorised by the Omani government in 2011, are set to take off later this year, with the banking, real estate and insurance sectors all expected to see benefits. However, competition is also forecast to increase as both sharia-compliant and conventional banks vie for customers.
The emirate’s banking sector is still working to shake off the lingering effects of the global financial crisis, with lenders having to make higher provisions for debts than some of their neighbours who were less encumbered when the global economy went into decline.

How have the floods affected the life segment?

In 2011 as unprecedented damages from floods hit the non-life segment, Thailand’s insurance industry caught the world’s attention. But while loss ratios for property surged, the industry’s claim settlements continued to function efficiently and provided a crucial source of financing for post-crisis reconstruction.

The unsuccessful attempted takeover of American International Assurance (AIA) by the UK’s Prudential Insurance (Pru) in early 2010 focused investors’ attention on the important growth prospects in Asia’s life insurance industry. While this would have translated into a minor player overtaking a major one, unlikely given Pru’s negligible presence, it...

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