Economic diversification in the Middle East: Insurance’s role in supporting growth sectors of the economy
01 May 2020
Insurance is one of the oldest fields of the economy and the main goal of the industry is protecting the health and assets of people.
Insurance stimulates the economy by managing the risks which are associated with business activities and enabling businesses to operate in a cost-effective manner. These actions help businesses run successfully, which translate to more jobs and an increase in economic activity.
In the development of countries such as Great Britain, Germany, Switzerland and France, insurance became a vital part of the economy. From centuries ago, people and businesses - many of which survive to the modern day or have merged with modern enterprises - trusted insurance, and for this reason insured their valuable assets.
While most people think of insurance as motor insurance or property insurance or medical insurance, the major factors of social life, in fact insurance’s role in supporting growth sectors of the economy and economic diversification in the Middle East is vast.
For example, in the UAE economic diversification has led to impressive development in key sectors such as tourism, air transport, trade, financial services, manufacturing and alternative energy. All of these have been bolstered by a sturdy insurance sector.
The activities in the insurance market which occur every day improve economic growth, and from that insurance activities also help increase a country’s GDP. A stronger economy leads to stronger communities and overall improved economic health of individual nations in the Middle East as a whole.
When unforeseen challenges do strike, insurance is one of the best financial tools businesses can call upon to help tackle these challenges and help support, protect and indeed re-invigorate the economy.