Takaful Insurance and Its Impact on Enhancing Economic Growth in the Kingdom of Saudi Arabia During the Period (2010–2021)

The study primarily attempts to examine the influence of Takaful insurance on the economy of the Kingdom of Saudi Arabia during the period 2010–2021, considering the rapid growth of the Takaful insurance industry in the Kingdom of Saudi Arabia, which reached total premiums of 42.03 billion Saudi riyals in 2021. This indicates increasing awareness of the need for financial protection that adheres to Islamic law.The study utilizes the generalized method of moments (GMM) approach to investigate the correlation between Takaful insurance and economic growth. Here, we present a comprehensive overview of the Takaful insurance industry in the Kingdom of Saudi Arabia, commencing with its definition, legislation, and impact on economic development. The article presents the future outlook, challenges, technological advancements, and potential growth of the Takaful insurance sector about the Saudi Economic Vision 2030. The study suggests that the Takaful insurance sector is better at generating employment and localizing incomes as, according to the reports, 74% of Saudis will be working in the Takaful insurance sector by 2030. It is also a major contributor in facilitating investment, diversification of incomes, financial system stability, and risk reduction. It recommends that the regulations and laws of the Takaful insurance sector be crafted and that Takaful insurance products and services be formulated based on emerging technologies to offer to customers and revolutionize the sector.