The Training Imerative In The Middel East : The Training Needs In The New Era Of The Saudi Insurance Market By Dr. Abdalelah Saaty Global Mid-East Insurance Summit

CONTENTS AAbout Saudi Arab – Geographical View PPopulation – Local & Expatriates  Education – In General & In Particular about Insurance OOver View of the Saudi Economy AAbout Insurance – History & its Present Scenario - Growth & Trends

Kingdom of Saudi Arabia  Estimated population by million  Expatriates workers 7 million  Land 829,995 sq mi (2,149,690 sq km)

Population (Million) in Saudi Arabia Million Years

EDUCATION AAt the time Saudi Arabia was founded in 1932, education was not accessible to everyone and limited to individualized instruction at religious schools in mosques in urban areas

 In the nearly half a century that has elapsed since its foundation, Saudi Arabia’s educational system has witnessed an astonishing transformation.  There are as of 2007 (27,900) schools, twenty universities, and (214) colleges and other educational and training institutions.

EDUCATION TThe Saudi educational system now provides free education, books and health services to some five million students — one of every four people in the Kingdom — from kindergarten through university, and from adult education to vocational training. TThe largest chunk of the kingdom's new budget - more than $16 billion - has been earmarked for education and more technical training programs

Kingdom of Saudi Arabia Economic indicators OOil was discovered in  Major trading partners are the United States, Japan, Great Britain and other European Union countries, South Korea, India, China and Singapore. SSaudi Arabia’s economic woes are compounded by several factors, including its vast reliance on the fluctuating prices of hydrocarbon exports, which account for 90 percent of export earnings and 75 percent of the budget

Historical Insurance Development TThe Thirties Stage TThe Seventies Stage TThe Present Stage

Saudi Insurance Market  Size of insurance market : $ 1.85 Billion  Potential : $ 5.86 Billion  Ins/GNP : 0.5%

Year: 2006Insurance DensityInsurance Penetration Middle East (ME) Total BizLife BizNon-Life BizTotal BizLife BizNon-Life Biz Cyprus Qatar UAE Bahrain Kuwait Lebanon Oman Insurance in the Middle East

Saudi Arabia Jordan Iran Syria Yemen Year: 2006Insurance DensityInsurance Penetration Middle East (ME) Total BizLife BizNon-Life BizTotal BizLife Biz Non-Life Biz Turkey Insurance In The Middle East

Tunisia Morocco Libya Algeria Egypt Year: 2006Insurance DensityInsurance Penetration North Africa (NA)Total BizLife BizNon-Life BizTotal BizLife BizNon-Life Biz Insurance In The Middle East

Gross written premium – by line of business

Gross written premiums (2005 – 2006)

Insurance Companies In Saudi Arabia Licensed Under licensing 18 24

Organization and Regulation Development CCooperative Health Insurance Law (2000) CCooperative Health Insurance council AApplication for Saudis (2003) FForeign investment in Insurance Sector (2003) MMonitoring Insurance Companies Law (2004)

Justification for Health Insurance  Relieving Financial Pressure  Developing Private Sector  Providing Employment Opportunities  Better Utilization of Resources

Potential SSaudi Arabia is one of the largest insurance market in the region. tthe Kingdom's insurance market is bound for more growth. The Government diversification and industrialization program is opening new avenues in both personal and commercial insurance

Potential In Insurance MMedical and automotive insurance premiums now account for 60 percent of the business. These sectors of insurance market is growing tremendously as the Government enacts mandatory medical and motor insurance.

INSURANCE DEVELOPMENT LLeading world insurers are considering entering the market through new ventures or aligning with existing players in the kingdom

Manpower in Insurance Total workers Expatriate workers Local workers New jobs creation for locals 4, (80%) 840 (20%)10,000

Insurance Education TThe insurance education has yet not received appreciable attention of the academicians TThere is a tremendous need of insurance trained and qualified workforce to meet the growing need of the insurance industry MMost of the insurance technical jobs are being performed by overseas workers.

DDue to the 30% mandatory employment of local people the problem has compounded for the insurance industry as to best accommodate the locals TThere are now job opportunities in the field of insurance. Yet, there are no qualified people for them. KKing Abdul Aziz University has initiated Three Years an Associated Degree program offering insurance practical and theoritical knowledge

KKing Abdul Aziz University is looking forward with international institutions to have a mutual cooperation and partnership to promote insurance education in Kingdom

In conclusion  Saudi Arabian market in term of insurance activities whether education or setting up company is full of potential and returns and a joint ventures are high likely to shape

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