Abu Dhabi Executive Council approves "Mithaq" Insurance Company

Liability company established with initial capital of AED150 million

Abu Dhabi, December 24, 2007:
“Mithaq Lil-Takaful”, a newly established Sharia-compliant insurance firm, has said that it has received the approval of the Abu Dhabi Executive Council (ADEC) to start operating in the United Arab Emirates.

Abdullah Saeed Al Qubaisi, chairman of the founding committee of Mithaq Liability Insurance Company, said the ADEC had given its approval for the establishment of the Abu Dhabi-based Islamic insurance company which has an initial capital of AED150 million with 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.

Al Qubaisi said: “Getting the approval of the Abu Dhabi Executive Council after similar approval from the Emirates Securities and Commodities Authority is another very important step in the incorporation process of the company. This will be followed by the floating of Mithaq Insurance Company’s 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-compliant 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 pointed out that the UAE insurance market is witnessing a rapid growth rate currently at about 30% per annum, while the annual instalments of insurance firms in the UAE is estimated at about AED480 million, according to feasibility studies.

He said: “Mithaq” will be offering a comprehensive, high quality and Sharia-compliant insurance services. It will provide a low-risk investment opportunity and would be supervised by a committee of competent Islamic scholars of high reputation to ensure that the company help bring stability in all sectors of the society.”

He added: “Mithaq” 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.”

Mithaq Liability Insurance Company had announced earlier this month that it will float its shares for general subscription in early 2008.