| According to the Saudi Insurance Market Survey Report for 2005-2006 issued by SAMA, 42 insurance companies were operating in Saudi Arabia as of 2006. The local insurance industry is in a transition phase, whereby existing companies are allowed to operate under a grace period ending in March 2008. By that date, insurance companies and other insurance service providers must either obtain a license from SAMA to operate in Saudi Arabia (in accordance with the Cooperative Insurance Companies Law, 2003) or exit the market.
SAMA has, so far, received 42 applications for insurance and reinsurance licenses. The Council of Ministers has approved 18 applications and the remaining are under consideration for the final decision. Insurance companies that receive an approval have to apply for listing on the local stock exchange, and complete regulatory requirements before receiving a license to operate from SAMA.
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