A new Islamic insurer, backed by top Abu Dhabi entities, will be listed on the UAE capital's bourse by March or April, a senior official at one of its backers said on Sunday.

Wataniya Takaful plans to raise Dh82.5 million ($22.47 million), or 55 per cent of its capital, through an initial public offering. It will have capital of Dh150 million to provide Islamic insurance.

'The Wataniya IPO could be in March or April latest,' Aref al Khouri, managing director of the Islamic banking division of National Bank of Abu Dhabi (NBAD) said at an Islamic forum in Abu Dhabi.

The venture is backed by National Bank of Abu Dhabi and Abu Dhabi National Insurance Company - each with a 35 per cent stake - while Abu Dhabi National Energy Company (Taqa) and Aldar Properties will hold 15 per cent each in the founder's share.

'There is a huge demand for sharia-compliant insurance products with very little available in the market,' Khouri told Reuters later. 'We see good potential.'

The UAE with a population of around 8 million has 59 insurance companies and seven takaful providers.

Takaful works like mutual insurance, but there is a clear segregation of the assets owned by members and those owned by the insurer. Islamic insurers keep away from investments in risky assets and prefer fixed income products for parking funds.-Reuters