A new Shari’ah-compliant insurance firm, Mithaq Lil-Takaful, has received regulatory approval from the Emirates Securities and Commodities Authority to begin its operations in the UAE. Shares in the Abu Dhabi-based firm will be available for general subscription in January 2008. 55 per cent of the shares will be available for general subscriptions, with the remaining 45 per cent reserved for the founding members. Mithaq will have an initial capital of AED150 million ($40.8 million).
One area that the firm will focus on is the liability insurance sector. Demand for this type of insurance has increased with the economic growth in the UAE, and a Shari’ah-compliant product is something the firm believes is needed in the market.