Abu Dhabi-based National Takaful Company (Watania) plans to start operations in the third quarter  and will open five branches within the next two years, said a top official.

Speaking at the investors meeting, Aref Ismail Al Khouri, chairman of Watania’s founders’ committee, said, 'Watania has been established to play a central role in developing the increasingly popular Shariah-compliant insurance industry in UAE, and that was clear from the phenomenal demand on Watania shares during the IPO.'

The Abu Dhabi insurer was officially launched on Sunday in the presence of its shareholders after a highly successful initial public offer (IPO) in April.

The IPO, which ran from April 18 to May 1, was oversubscribed severn times with the company receiving subscriptions for 590 million shares of an available 82.5 million shares.

This reflects the confidence in the potential of the Takaful industry of both founders and investors, Al Khouri pointed out.

'With the success of the isssue, Watania is well-positioned to become insurer of choice for Abu Dhabi and the UAE. Not only does Watania have the financial strength and capacity to retain risk, and, thus, greater profitability in the UAE, it also offers a unique suite of Shariah-compliant products that meet the needs of all customers,' he added.

Al Khouri also updated the Watania founders and investors on the impressive results of the IPO, which was oversubscribed sevenfold.

He also outlined the company’s strategy and its Takaful insurance services, as well as expansion plans at the meeting.

According to him, Watania will have a major presence in the country through establishment of branches in different emirates.

Watania will start offering services to individual and corporate customers in the third quarter from its corporate headquarters in Abu Dhabi, Al Khouri said.

'The second branch will be opened in Abu Dhabi followed by two others in Al Ain during the first year. Similar branches will be set up in Dubai, Sharjah and the Western Region of Abu Dhabi in the second year,' he added.

Al Khouri said several key steps would be taken to ensure that the newly established company operates as per its stated values of integrity, transparency, excellence, teamwork and innovation.

The shareholders' meeting approved the appointment of an auditor, a Shariah supervisory committee and members of the board of directors.

'Watania is perfectly positioned to back the 'Plan Abu Dhabi 2030,' including huge infrastructure projects as well as initiatives to diversify the Emirate’s economy and further support the growth of non-oil sectors,' said Al Khouri.

'These are extraordinary opportunities for the company and will certainly contribute to the growth our business in the coming months and years,' he added.-TradeArabia News Service