S&P Sees Gulf Insurance Growth Cooling, With UAE Premiums Slowing to Around 10%

S&P Global Ratings expects insurance premium growth across the Gulf to slow this year, with the UAE moderating to around 10% after expanding nearly 20% in 2025, and Saudi Arabia easing to a range of roughly 8% to 12%. The ratings agency attributed the slowdown to the maturing of mandatory insurance lines rather than any loss of underlying demand, and said health and motor cover would continue to drive the market. The assessment points to a Gulf insurance sector that remains structurally healthy but is transitioning from a period of rapid, regulation-driven expansion toward more sustainable growth as compulsory coverage requirements become established. S&P also flagged pressures elsewhere in the region, noting that several listed Saudi insurers carry accumulated losses relative to their share capital, leaving weaker players exposed as a risk-based capital regime moves toward full effect in 2027 and potentially fuelling further consolidation. For the UAE, a still double-digit growth rate underscores the market's resilience, supported by population growth, mandatory health cover and a steady motor segment, even as the exceptional pace seen in 2025 gives way to a more normalised trajectory. Insurers are expected to focus on profitability and pricing discipline amid the shift.