Emirates Securities and Commodities Authority gives approval to “Mithaq” Insurance Company

New firm has initial capital of AED150 million

Abu Dhabi, December 16, 2007:
“Mithaq Lil-Takaful”, a newly established Sharia-compliance insurance firm, has said that it has received the approval of the Emirates Securities and Commodities Authority to start operating in the United Arab Emirates.

The Abu Dhabi-based Islamic insurance company said it will float it shares for general subscription in January 2008. The company, which has an initial capital of AED150 million will have 45% of its shares reserved for the founding members, who are mainly UAE economic personalities, while the remaining 55% of the company’s shares will be floated for general subscriptions.

Commenting on the new development, the chairman of the company’s founding committee, Mr. Abdullah Al Qubaisi, said: “Getting the approval of the Emirates Securities and Commodities Authority is a very important step in the incorporation process of the company. This will be followed by the floating of its shares for general subscription on the UAE market. Such a development is happening at a time when the UAE is witnessing a very rapid economic growth which gave birth to a sharp growth of the insurance market, particularly Sharia-compliance liability insurance product. This has created the need for more new liability insurance companies to meet the growing demand for this type of insurance product.”

He added: “Mithaq” will be offering a comprehensive and high quality insurance services that would help bring stability in all sectors of the society. It will also help push forward the wheel of UAE’s development by playing a pioneering role in the liability insurance sector and by providing innovative products that would suit all segments of the society.