From The Report: Abu Dhabi 2013
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Local insurers in Abu Dhabi have weathered a turbulent two years, during which they have been compelled to make the transition from an era of rapid economic expansion to one of more muted growth. Yet the sector has met the challenge of declining investment income while continuing to show healthy profit – a clear indication of the air of optimism that currently prevails within the emirate’s insurance community. A growing population, a relatively low penetration rate and a number of infrastructure developments in the pipeline form the basis of the future growth of the emirate’s insurers. Indeed, a double-digit compound annual growth rate is forecast for the UAE insurance sector until 2015. And although Abu Dhabi’s insurers face a number of challenges, chief among them a difficult investment climate and a wave of regulation that promises to fundamentally alter the way in which they assess their business, the drivers for growth within the domestic market make for a sanguine outlook.