The Gulf Cooperation Council (GCC) region is projected to expand in 2026 and generate earnings that will exceed 2025 levels but remain volatile and below 2023-2024 levels, says S&P Global Ratings (S&P).
In a report titled "Islamic Insurers In The GCC Region Hold Steady", released yesterday, S&P said, “We expect the sector to increase by approximately 10%-12% this year, despite the Middle East war.”
In the first six months of 2026, revenues increased by nearly 15% year over year, compared with about 10% in full-year 2025," S&P Global Ratings credit analyst Mr Emir Mujkic said.
The takaful market’s robust performance in the first half of 2026 primarily resulted from sustained demand for mandatory motor and medical coverage, as well as ongoing infrastructure projects.
The mid-year 2026 results suggest that Islamic insurers' earnings could improve this year, following relatively weak performance in 2025. Aggregate net profit for the sector declined to approximately $0.7bn in 2025 from about $1.1bn in 2024. This was primarily due to a significant decrease in net earnings in the Saudi market, to about $507m in 2025 from $960m in 2024.
Saudi Arabia will remain the largest Islamic insurance market in the GCC region. The country accounted for approximately 89% of total sector revenues in 2025, down slightly from about 91% in 2024.
The report added, “We anticipate that credit ratings on Islamic insurers will remain broadly stable over the next 12 months, even though competition remains high and initiatives such as the new regulatory framework in Saudi Arabia could prompt further industry consolidation.”