By Hiba Allam and Owen Delaney

As one of the rising stars of the Islamic finance industry, Takaful has enjoyed continued and robust growth in recent years, despite the backdrop of the global financial crisis. It has been estimated that the size of the industry would reach US$8.9 billion by the end of 2010, with others expecting the industry to treble in size over the next few years. With such growth and optimism it is not surprising that the Takaful industry has spread out to attract not only Islamic market participants, but a strong following among conventional insurers, including American Life Insurance Company (ALICO), Aviva, AXA, and FWU Group, with each contributing its own expertise and innovation to the development and growth of the industry.

The UAE Takaful market has benefited from the industry's global dynamism, and the number of Takaful operators in the UAE market is a reflection of its development. This in turn has brought light on the need to address Takaful as an industry deserving of its own specific regulations, distinct from those regulating conventional insurance. Read the entire article here.