{"id":254972,"date":"2025-09-30T12:47:47","date_gmt":"2025-09-30T10:47:47","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=254972"},"modified":"2025-09-30T12:47:47","modified_gmt":"2025-09-30T10:47:47","slug":"al-ghziwi-writes-the-weak-contribution-of-the-libyan-insurance-sector-to-the-gross-domestic-product","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/al-ghziwi-writes-the-weak-contribution-of-the-libyan-insurance-sector-to-the-gross-domestic-product\/","title":{"rendered":"Al-Ghziwi Writes: “The Weak Contribution of the Libyan Insurance Sector to the Gross Domestic Product”"},"content":{"rendered":"\n

Akram Abdullah Al-Ghziwi, Deputy General Manager of Takaful Insurance Company, writes: The Weak Contribution of the Libyan Insurance Sector to the Gross Domestic Product.<\/em><\/p>\n\n\n\n

Despite the long history of the insurance sector in Libya, its contribution to GDP remains relatively modest. It does not reflect the economic potential nor the growing societal need for risk management. While neighboring Arab countries record relatively advanced ratios, the Libyan sector remains confined to structural and legislative challenges that hinder its development.<\/p>\n\n\n\n

Modest Figures in Libya<\/h3>\n\n\n\n

Estimates indicate that the contribution of the Libyan insurance sector to GDP ranges between 0.1% and 0.3%<\/strong>, a very small share compared to the size of the Libyan economy, which reached about USD 46.64 billion in 2024<\/strong>. This means that the total contribution of insurance does not exceed USD 140 million<\/strong>\u2014a figure that neither meets development aspirations nor reflects the importance of insurance as a strategic economic tool.<\/p>\n\n\n\n

Arab and Regional Comparison<\/h3>\n\n\n\n
    \n
  • Egypt<\/strong>: The insurance sector contributes about 1%<\/strong> of GDP, with the Financial Regulatory Authority aiming to increase this through digital transformation and expanding the customer base.<\/li>\n\n\n\n
  • Oman<\/strong>: Recorded 1.23%<\/strong> in 2022, with an annual growth rate of 13%<\/strong> in insurance premiums.<\/li>\n\n\n\n
  • Morocco and Tunisia<\/strong>: Contribution ranges between 1.5% and 2%<\/strong>, driven by advanced legislation and international partnerships.<\/li>\n<\/ul>\n\n\n\n

    These comparisons highlight a clear gap between Libya and neighboring countries, underscoring the need for fundamental reforms to restore the sector\u2019s economic role.<\/p>\n\n\n\n

    Diagnosing Libya\u2019s Challenges<\/h3>\n\n\n\n

    The weak contribution of insurance in Libya is not only about figures but also stems from several challenges:<\/p>\n\n\n\n

      \n
    • Lack of a comprehensive law regulating Takaful insurance, and no update of the general insurance law since 2005.<\/li>\n\n\n\n
    • Shortage of qualified technical staff and absence of sustainable national training programs.<\/li>\n\n\n\n
    • Weak public trust in insurance companies due to lack of transparency and oversight.<\/li>\n\n\n\n
    • Limited international outreach of Libyan companies despite their long history.<\/li>\n<\/ul>\n\n\n\n

      A National Reform Vision<\/h3>\n\n\n\n

      To turn this reality into a development opportunity, practical steps can be adopted to increase insurance contribution and link it to national development:<\/p>\n\n\n\n

      1. Legislative and Structural Reform<\/strong><\/p>\n\n\n\n

        \n
      • Enact a comprehensive Takaful insurance law.<\/li>\n\n\n\n
      • Update existing legislation and align it with international standards.<\/li>\n\n\n\n
      • Increase the number of compulsory insurance policies.<\/li>\n\n\n\n
      • Reassess state assets and properties.<\/li>\n<\/ul>\n\n\n\n

        2. Market and Product Development<\/strong><\/p>\n\n\n\n

          \n
        • Launch new insurance products (agriculture, health, digital, SMEs).<\/li>\n\n\n\n
        • Link insurance to major development projects.<\/li>\n\n\n\n
        • Encourage competition and innovation among companies.<\/li>\n<\/ul>\n\n\n\n

          3. Capacity-Building and Insurance Culture<\/strong><\/p>\n\n\n\n

            \n
          • Train national cadres through international partnerships.<\/li>\n\n\n\n
          • Include insurance studies in university curricula.<\/li>\n\n\n\n
          • Launch national awareness campaigns about insurance.<\/li>\n<\/ul>\n\n\n\n

            4. International Expansion and Alliances<\/strong><\/p>\n\n\n\n

              \n
            • Establish joint companies with Arab and European institutions.<\/li>\n\n\n\n
            • Join international insurance organizations.<\/li>\n\n\n\n
            • Promote Libya as a Takaful insurance hub in North Africa.<\/li>\n<\/ul>\n\n\n\n

              5. Linking Insurance to Economic Policies<\/strong><\/p>\n\n\n\n

                \n
              • Integrate insurance into national development plans.<\/li>\n\n\n\n
              • Make insurance policies compulsory.<\/li>\n\n\n\n
              • Encourage foreign investment in the sector.<\/li>\n\n\n\n
              • Regularly measure insurance contribution and link it to economic performance indicators.<\/li>\n<\/ul>\n\n\n\n

                From Figures to a National Project<\/h3>\n\n\n\n

                The weak contribution of the Libyan insurance sector is not just an economic shortcoming, but an opportunity to launch a national reform project that restores the sector\u2019s standing and enhances Libya\u2019s professional image globally. Each percentage point added to its contribution is a step toward a more stable economy, a safer society, and a nation more capable of confidently managing its future.<\/p>\n","protected":false},"excerpt":{"rendered":"

                Akram Abdullah Al-Ghziwi, Deputy General Manager of Takaful Insurance Company, writes: The Weak Contribution of the Libyan Insurance Sector to the Gross Domestic Product. Despite the long history of the insurance sector in Libya, its contribution to GDP remains relatively modest. It does not reflect the economic potential nor the growing societal need for risk […]<\/p>\n","protected":false},"author":13,"featured_media":254973,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[683],"tags":[1076,1027,613],"class_list":["post-254972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-articles","tag-gross-domestic-product","tag-insurance","tag-libya"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/254972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/comments?post=254972"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/254972\/revisions"}],"predecessor-version":[{"id":254974,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/254972\/revisions\/254974"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/254973"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=254972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=254972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=254972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}