ISLAMIC INSURANCE AND FOREIGN INVESTMENT PROCESS: A BASIC ANALYSIS REGARDING TAKAFUL LAWS OF THE ARAB STATES OF THE PERSIAN GULF

Abstract

 The Arab states of the Persian Gulf (ASPG), i.e. Saudi Arabia, Qatar, Bahrain, Oman, Kuwait and the United Arab Emirates, have adopted different protection mechanisms in recent years to attract foreign investors. One of the most significant mechanisms in this regard is foreign investment insurance. The noteworthy point is that these Arab states are Islamic ones and the existing laws in these societies are based on Islamic doctrine. Purpose: The basic purpose of the current article is to answer the main question: Have the relevant laws regarding foreign investment insurance in the ASPG also paid attention to Islamic insurance? Research Method: In this study, quantitative and qualitative methods have been used to examine the laws regarding Islamic insurance in the relevant states. Conclusion: The present research has come to the conclusion that first, although the ASPG are Islamic ones, some countries such as Oman and Kuwait have enacted Islamic insurance laws in the last ten years (in 2016 and 2019, respectively). In any case, all these states have established Islamic insurance laws. Second, some of these countries' insurance laws include Islamic and conventional insurance at the same time, like Qatar. Third, all six Arab states in this region believe that insurance laws should not contradict Islamic doctrine. According to the Saudi Insurance Law (approved in 2005), all insurance operations in Saudi Arabia must be based on Sharia law.