Oman United Insurance Company (OUIC) is planning a joint venture subsidiary insurance firm in Qatar, a senior company official was quoted as saying.

"The new firm will have a capital of $10 million and OUIC will take 51 per cent stake in the joint venture," Mehr Ameen, general manager, Investment and Treasury of OUIC said in remarks published in the Oman Daily Observer.

The company's board has approved the proposal in a recent meeting.

Ameen said OUIC would invite high net worth individuals from both Oman and Qatar to co-promote the joint venture. Ameen said his company has conducted a feasibility study with the help of a consultancy agency and found that there was a good potential for insurance business in Qatar.

The proposal is part of a strategic move to diversify sources of income.

"The new firm will offer general insurance products. We will also offer health insurance schemes," he noted. OUIC will soon seek approval from the Capital Market Authority (CMA) for the new insurance firm.

"We will apply for approval from Qatar Financial Centre after getting clearance from CMA," he added.

"It (Qatar) is one of the fastest growing economies in the Gulf region..... Majority of population is young. The real estate and infrastructure sectors are witnessing a boom," Ameen noted. Qatar is the fourth largest economy in the Gulf region.

The growth in gross domestic product of Qatar was 24.2 per cent last year.

The ongoing privatisation programmes of the country will also provide additional investment opportunities for foreign investors.

"All these offer better growth prospects for insurance firms."

Established in 1985, Oman United has 11 branches spread across the country, which include Salalah, Sohar, Sur, Buraimi, Sohar, Ibri, Nizwa and Ibra. All these branches are inter-connected and become part of the wide area network.

OUIC provides various kinds of general, life and medical insurances.

Over the years, it has established itself in the Sultanate as giant in its area of operation and earned appreciation on various occasions.

The company offers a range of tailor made medical and life insurance schemes suitable for individuals and institutions.