The energy sector in the Middle East is balancing historic dominance in fossil fuels with the shift to renewable clean energy, said the global head of downstream broking, Natural Resources, at WTW, Mr Andrew Brunero, in a report.
In a section on the Middle East of the report, which is titled 'Managing the insurer profitability tightrope: Energy Market Review April 2025', Mr Brunero said that the economic visions of the GCC countries are giving rise to colossal investment with several mega projects ongoing in the region.
“This will change the risk landscape and clients will need partners to assist them in understanding their exposures and how best to manage risk and to obtain the appropriate coverage needed,” he said.
He added, “With the new recent directive from Saudi Arabia mandating placement shares to remain in the country, we foresee an influx of insurance companies looking to invest and set up there in the future.”
The insurance market in the region is a recognised specialist hub with over $1.5bn of capacity available including both international and domestic markets.
Mr Brunero also said, “The region has an appetite for top talent and is proving to attract it. We are seeing more international specialist insurance companies setting up in the UAE, creating a large and vibrant market to do business in.”
He added, “Middle East business is favoured by insurers due to its low natural catastrophe exposure and excellent loss record. The majority of risks in the region are considered to be well engineered and the GCC is seemingly unaffected by the world’s tumultuous geopolitical landscape. All of this adds up to Middle East risks being highly sought after by insurers and receiving very competitive terms as a result.”