10 July 2008 Doha&- Qatari and Bahraini insurance companies have teamed up to form a 50-50 percent joint venture Takaful insurance company with a paid up capital of QR250m.
The company founders from both countries will hold 40 percent stake with the remaining 60 percent in the JV to be offered for public subscription to Qatari and Bahraini citizens.
The agreement for the JV was signed here yesterday at the Qatar Chamber of Commerce and Industry (QCCI) headquarters, by Sheikh Nawaf bin Mohammed bin Jabor Al Thani, QCCI Board member and Chairman of the newly established company, and Sameer Ibrahim Al Wazzan, the Deputy Chairman.
Present at the signing ceremony were Sheikh Khalifa bin Jassim bin Mohammed Al Thani, QCCI Chairman and Dr. Essam Abdullah Yousef Fakhroo, Chairman of Bahrain Chamber of Commerce and Industry (BCCI).
Dr Fakhroo said a new horizon for cooperation has opened up for the business community both in Qatar and Bahrain which needs to be translated into joint projects and partnerships, especially that the causeway that will link the two brotherly countries in few years will impart a new dimension to the brotherly relations between the citizens of the two countries.
He said the set up of the Qatari-Bahraini Takaful insurance company is the fruit of efforts exerted by the QCCI and BCCI, adding that the venture heralds other major joint projects which are being planned and expected to be established soon, including a Qatari Bahraini Bank and a joint holding company.
He said these projects were on the agenda of QCCI and BCCI for many years and that their efforts have led to the establishment of a joint committee comprising prominent businessmen from both countries to deal with joint projects.
Later Al Wazzan told reporters that the newly established company will be licensed and registered in Qatar and will also be listed initially on the Doha Securities Market (DSM) after the initial public offer (IPO) then after on the Manama stock exchange.
He said the company which will start operations early next year like any other general Takaful insurance company will be able to arrange any type of cover in the market focusing primarily on real estate, motor vehicles crossing the Qatari-Bahraini causeway once completed and marine Takaful.
Asked whether the QR 250m capital was sufficient to deal with major projects, Al Wazzan said with this the company will be a financially strong Takaful operator in the local market. "We have tried to add value to the market but we will be underwriting all types of business," he said.
As for eventual dealing with the gas and oil sector in Qatar and covering other GCC countries, he said: "I think the energy sector is a large market in Qatar and I think it will be a profitable business as well, but our initial focus is on motor, marine and property Takaful. Besides, our feasibility study focused only on the Qatari and Bahraini markets and it is too early to speak about expansion to other GCC markets."
He also said although the company will be headquartered in Doha, the board might consider eventually setting up a branch in Bahrain as well.
© The Peninsula 2008 & omar 1.1:zy
