The global takaful sector has grown at an annual rate of 9%, in line with growing international interest and is expected to reach US$52.5 billion by 2020, according to a report released by the Dubai Centre for Islamic Banking and Finance (DCIBF).
The report entitled “Takaful: Sustainability and Growth 2015 to 2025”, is the result of close collaboration between the DCIBF and the Dubai Islamic Economy Development Centre (DIEDC) which forms part of broader cooperative efforts to support Dubai’s transformation into the capital of the global Islamic economy.
The report also notes that the takaful sector has significantly expanded in Near- and Southeast Asia, Levant-North Africa, and the GCC regions. Between 2003 and 2015, 202 new takaful entities were established, with 51% of the 57 Organisation of Islamic Cooperation member countries now hosting a takaful institution.
The global takaful sector’s manpower rose by 55% from 63,358 in 2011 to 98,400 in 2015, with experts forecasting 40,000 new jobs to be generated in the next 10 years.
The report further advises takaful operators to re-assess their operating costs, adopt cost-effective new technologies, enhance a risk-awareness culture, and sharpen sales and marketing skills to boost their competitiveness.