Financial Services

The banking industry looks set for a period of consolidation and belt tightening, with many of Dubai’s analysts predicting an easing of profits and an increase in non-performing loans (NPLs) for the near term. Though mergers and restructuring by some local lenders is expected to produce a leaner sector, it should also become stronger and thus better able to meet the demands of the rapidly changing financial landscape.

Insurance sector leaders in South Africa are hopeful the country will not be too deeply impacted by the deepening debt crisis in Europe, with many policy writers expressing cautious optimism as the new year gets underway. The implementation of EU financial norms and a national health insurance scheme could prompt some changes in the sector in 2012.

Capital markets in Kuwait, like those in many GCC countries, are currently experiencing a challenging period, with investors largely staying on the sidelines in light of global economic uncertainties. Nonetheless, positive signs have recently emerged from the country, including the potential for two bond issuances in the near future, as well as the successful completion of a six-month transitional phase for the Capital Markets Authority (CMA), the country’s first independent stock market regulator.

Durante lo que demostró ser un año difícil para las bolsas de valores en todo el mundo, la Bolsa de Valores de Lima (BVL), en Perú, también se dio a la baja. Sin embargo, mirando más allá de las fluctuaciones a corto plazo en el mercado, existen muchas razones para ser optimista sobre su futuro.

Local business leaders and foreign investors alike are expressing confidence in the outlook for Indonesia’s insurance sector. Continued economic growth, low levels of penetration and strong performances from leading firms this year are all upside indicators. The market is a competitive one, and insurers are actively examining new strategies for capitalising on its considerable potential.

A pesar del rápido desarrollo económico en el Perú, el mercado de las compañías de seguros se mantiene relativamente pequeño en comparación con otros países de América Latina. Según un estudio reciente llevado a cabo por Fitch Ratings, la tasa de penetración de las compañías de seguros en Perú (medido como el porcentaje de las primas totales sobre el PBI) es 1-1.5%. Esta cifra se encuentra muy por debajo de Brasil y Chile (4%) y por debajo del 2% correspondiente a Colombia y Bolivia.