Jordan-based AAIB Insurance has received a license to trade in Somalia.

The company received its 'Special Permit And Service Certificate Of Registration As A Business' from the Somali Ministry of Commerce and Industry recently.

The permit means that AAIB is the only foreign insurance broking company able to place insurance business from within Somalia. It already has a representative on the ground in Mogadishu, the capital of Somalia.

“While the licence is a source of pride and competitive advantage to AAIB, its implications go way beyond the commercial interests of one company,” said William Wakeham, CEO.

"The real significance of this permit is that it is an important stepping stone in the development and reconstruction of Somalia after 22 years of civil war. This is good for Somalia and good for the companies that want to participate in its growth because for the first time they can get insurance cover for their operations informed by intimate local knowledge -as opposed to generic cover written at arm's length," said Wakeham.

He added that East Africa generally and Somalia in particular has become one of the most attractive areas in the world for oil and gas exploration. Late last year Somalia announced that it intends to auction 308 newly delineated blocks of oil rights.

"Without people on the ground, insurance companies find it hard to assess risk accurately. Some risks can't be covered at all and others carry a higher than necessary premium. Now the long slow task of realising Somalia's inherent wealth can begin in earnest," he said. - TradeArabia News Service