Muscat – Oman’s insurance market is projected to grow at a compound annual growth rate (CAGR) of 2.6% over the next five years, reaching $1.7bn by 2030, according to the latest research report released by investment banking firm Alpen Capital.

The report forecasts that the sultanate’s non-life insurance segment will expand at a CAGR of 2.4% between 2025 and 2030, reaching $1.4bn by the end of the period. Growth is expected to be driven by the continued expansion of mandatory health insurance coverage and the ongoing provision of health insurance by private-sector employers.

‘Additionally, ongoing infrastructure development and investments across key sectors under Oman Vision 2040 are expected to expand the base of insurable assets, thereby supporting demand for property, engineering and liability insurance lines,’ Alpen Capital’s GCC Insurance Industry Report said.

The report noted that Oman’s favourable macroeconomic conditions, including projected GDP growth of 4.0% at current prices over the next five years, are also expected to support demand across various insurance segments.

The life insurance segment is forecast to grow at a CAGR of 4.0% from 2025 to reach $0.3bn by 2030. According to the report, this growth will be supported by a steady rise in population, estimated at around 2.0% CAGR during the period, as well as gradually improving awareness of life insurance products.

‘Furthermore, ongoing regulatory transformation and modernisation of the insurance sector, including enhanced governance frameworks and a growing focus on digitalisation and product innovation, are expected to improve market efficiency and support the long-term growth of the insurance industry in Oman,’ the report added.

Despite the anticipated market expansion, insurance penetration in Oman is projected to decline marginally from 1.4% in 2025 to 1.3% in 2030. Insurance density, however, is expected to increase from $284.7 to $293.4 over the same period, the report projected.

GCC insurance premiums to reach $61.8bn by 2030

At the regional level, Alpen Capital projects the GCC insurance industry’s gross written premiums (GWP) to grow at a CAGR of 4.9% between 2025 and 2030, reaching $61.8bn by the end of the decade, subject to prevailing economic and geopolitical uncertainties.

The region’s non-life insurance segment is expected to remain the dominant contributor to the market, with GWP forecast to rise at a CAGR of 5.2%, from $42.1bn in 2025 to $54.1bn in 2030. This would account for 87.6% of the region’s total GWP.

Meanwhile, life insurance GWP is projected to grow at a CAGR of 3.5%, increasing from $6.4bn in 2025 to $7.7bn by 2030.

“The GCC insurance industry is expected to maintain its growth momentum, driven by a steady increase in population, the expansion of mandatory insurance lines and positive macroeconomic fundamentals. Over the next five years, the region’s insurable asset base is expected to rise significantly with the planned completion of large-scale infrastructure projects, benefiting the non-life segment,” said TM Lakshmanan, Chief Executive Officer of Alpen Capital.

“The region is also witnessing increased demand for risk-related insurance products due to natural disasters and geopolitical uncertainties. Although the sector is maturing, insurance penetration rates across the GCC remain below international standards, highlighting significant room for growth,” he added.

Among GCC countries, Saudi Arabia is expected to retain its position as the region’s largest insurance market while recording the highest growth rate, with a CAGR of 5.9% between 2025 and 2030. Kuwait is projected to follow with growth of 5.5%, while the UAE insurance market is expected to expand at a CAGR of 4.1%.

Looking ahead, Alpen Capital expects the GCC insurance industry to pursue strategic expansion initiatives, with major insurers acquiring smaller companies as well as digital-first operators and aggregators.

The trend is expected to strengthen market positioning, improve operational efficiency and foster innovation through the introduction of new products and services.