Despite the ongoing instability in the Middle East, S&P Global Ratings reports that insurance companies across the GCC face minimal risk from war-related claims. This security stems from standard industry policies that generally exclude such risks, while any specialized coverage is typically backed by comprehensive global reinsurance agreements. Consequently, local insurers maintain very limited net exposure, allowing them to focus on core growth areas like mandatory medical and motor insurance, which continue to thrive alongside major regional infrastructure projects.

The outlook for the region’s Islamic insurance sector remains optimistic, with projected growth of 10 to 12 percent by 2026. Following a challenging 2025 where profits faced pressure, the first half of 2026 has already shown a promising 12 percent year-on-year increase in aggregate net earnings. While rising costs in vehicle repairs and healthcare continue to influence market pricing, the sector is well-positioned for recovery. S&P expects credit ratings to remain stable over the coming year, as insurers benefit from stronger earnings expectations and a projected economic rebound across the GCC heading into 2027.