Al-Jazira Takaful Tadawul is one of the most sought-after concepts by investors and followers of the insurance sector in the Saudi market. Al-Jazira Takaful, a subsidiary of Al-Jazira Bank, represents an advanced model for cooperative (Takaful) insurance companies compliant with Islamic law and listed on the Saudi stock market 'Tadawul'. In this comprehensive article, we examine 'Al-Jazira Takaful Tadawul' from all angles: from defining the Takaful model, through the latest financial indicators and regulatory news, to analyzing the stock's performance on Tadawul, and the company's position among competitors in the sector and the role of technology in its digital transformation. Our goal is to provide in-depth and objective educational content that helps the reader understand Al-Jazira Takaful's position amidst the dynamics of the Saudi financial market, while adhering to the regulations of the Saudi Capital Market Authority that prohibit direct recommendations or price forecasts. In the following paragraphs, we will help you grasp the advantages of investing in cooperative companies, risk factors, products and services, and the company's capital growth – all based on the latest data for 2024 and 2025. We remind you that this article is for educational purposes only, and you should consult a licensed financial advisor before making any investment decisions.
Definition of Al-Jazira Takaful Tadawul in the Saudi Financial Market
Al-Jazira Takaful is a licensed cooperative insurance company, established within the Al-Jazira Bank Group and operates according to Islamic law regulations, offering health insurance, property insurance, life insurance, vehicle insurance, and more. Its model is based on the principle of Takaful, where participants pay their contributions to a common fund whose benefits are managed for their benefit, within a framework of transparency and mutual advice. Al-Jazira Takaful's listing on the Saudi financial market (Tadawul) has made it one of the leading companies in the cooperative insurance sector, supported by administrative and technical backing from Al-Jazira Bank. The company follows a regulatory structure that combines the Sharia board, the founding council, and regulatory oversight bodies such as the Saudi Central Bank (SAMA) and the Saudi Insurance Authority. Its presence on Tadawul imposes high disclosure and transparency obligations and reflects the Saudi market's direction towards diversifying income sources and supporting non-oil sectors.
The Takaful Insurance Model and Its Advantages
Takaful insurance is a cooperative insurance system based on risk-sharing in accordance with Islamic law. In this model, participants are partners in a single fund, and the premiums are used to cover members' losses rather than to achieve pure commercial profit for the company. This model is an acceptable Sharia-compliant alternative to traditional insurance, as dealing with usury or prohibited financial speculation is prohibited. Al-Jazira Takaful plays a pivotal role in promoting this concept, offering a variety of products targeting a wide segment of the Saudi community seeking insurance solutions that align with religious values. The company is also committed to reinsurance with local and global companies within Takaful standards, which supports risk management and enhances trust among clients.
Organizational Structure and Sharia Supervision at Al-Jazira Takaful
Al-Jazira Takaful is subject to a precise organizational structure that ensures its compliance with Islamic law standards and Saudi laws. The Sharia board of Al-Jazira Bank reviews all products and operations to ensure compliance with Sharia. On the other hand, the company is supervised by official institutions such as the Ministry of Commerce, the Saudi Commission for Professional Specialists, and the Saudi Central Bank (SAMA). In 2024, new international standards (IFRS 17) came into effect, requiring the development of governance and financial auditing policies. This combination of internal and external oversight enhances the company's credibility and transparency before investors and clients, making it a model to be emulated in the cooperative insurance sector.
Financial Performance of Al-Jazira Takaful in 2024 and 2025
Al-Jazira Takaful witnessed significant revenue growth (underwritten premiums) in 2024 and 2025, with an average annual growth rate between 10% and 15%, driven by expansion in the health and vehicle insurance markets. Financial reports showed an increase in total premiums and net profits despite some fluctuations associated with changes in actuarial policies. In 2024, a capital increase was approved through a bonus share distribution of approximately 30%, which supported the company's precautionary standards. Al-Jazira Bank's share in the capital also rose to about 29.36%. The market value ranged between SAR 1.0 billion and SAR 1.65 billion, with a price-to-earnings ratio fluctuating between 20 and 30 times. The company did not distribute cash dividends but preferred to enhance capital with reserves and bonus shares.
Al-Jazira Takaful Stock on Tadawul: A Look at Prices and Indicators
Al-Jazira Takaful stock recorded relative stability during 2024-2025, with the stock price ranging between SAR 15 and SAR 25 depending on market fluctuations and company announcements. The average stock price in the last quarter of 2024 was approximately SAR 20, gradually rising at the beginning of 2025. The company's market value exceeded SAR 1 billion at the mentioned prices. The price-to-earnings ratio remained between 20 and 30 times, with the absence of cash distributions and the company's reliance on bonus shares. The stock movement is characterized by moderation compared to larger companies on Tadawul, but it is influenced by regulatory announcements and the company's quarterly results, especially regarding capital increases or changes in major shareholders.
Analysis of the Saudi Cooperative Insurance Sector
The Saudi insurance sector is one of the largest markets in the region, witnessing annual growth between 5% and 10%. Cooperative insurance constitutes an increasing part of the market, driven by rising consumer awareness and the imposition of mandatory health insurance. Takaful companies like Al-Jazira Takaful benefit from digital transformation, product diversification, and government support to increase insurance penetration. The sector includes strong competition with companies such as Al-Rajhi Takaful, Malath, National, and Bupa, alongside traditional companies. Competition focuses on service quality, claims processing speed, and pricing, within a regulatory environment that requires strong capital reserves and compliance with Sharia governance standards.
Key Competitors and Al-Jazira Takaful's Strategies
Al-Jazira Takaful competes with leading companies in the sector such as Al-Rajhi Takaful, Malath Insurance, National (MetLife), and Bupa. Al-Jazira Takaful is distinguished by strong banking support from Al-Jazira Bank, its focus on Sharia-compliant products, and advanced digital services. Competitors focus on gaining market share through a wide branch network, offering innovative products, and occasionally lowering prices. Al-Jazira Takaful's strategy involves enhancing capital, investing in technology, and improving customer experience while maintaining full Sharia compliance. This balance gives the company a competitive edge in an ever-evolving market.
Developments in 2024-2025: Capital Increase and Raising Al-Jazira Bank's Share
Among the prominent developments in 2024-2025 was the approval of the General Assembly of Al-Jazira Takaful to increase capital through the issuance of bonus shares by 30-40%, which enhances financial solvency and supports expansion plans. In May 2024, Al-Jazira Bank raised its stake in the company to 29.36% after purchasing shares from the Solidarity Group, reflecting strategic confidence in the company and integration with the parent bank. These moves have strengthened the company's financial stability and increased its ability to meet the new regulatory requirements imposed by the Saudi Central Bank (SAMA), particularly regarding solvency and reserves.
Regulatory Changes and Their Impact on Al-Jazira Takaful
The Saudi insurance sector in 2024-2025 witnessed the implementation of IFRS 17 standards and updates from the Saudi Central Bank (SAMA) aimed at enhancing the efficiency of insurance companies, strengthening governance, and expanding capital requirements. These changes forced Al-Jazira Takaful to review its financial and actuarial policies, presenting challenges and opportunities for improving operational performance. The company's commitment to the new standards has strengthened its regulatory position and supported investor confidence, especially with the implementation of strict financial auditing and greater transparency in reporting results.
The Role of Digital Transformation in Al-Jazira Takaful Services
Al-Jazira Takaful has invested in developing advanced digital platforms to provide insurance services electronically, from issuing policies to managing claims. In early 2025, the company launched a new online platform that enhanced customer experience and speed of processing requests, in line with the digital transformation in the Saudi financial sector. Digital transformation has reduced operational costs, increased efficiency, and helped attract new customer segments, especially the youth and those interested in smart services. It has also enabled the company to quickly respond to regulatory changes and provide instant financial reports.
Opportunities and Risks in the Saudi Insurance Sector Environment
The main opportunities for Al-Jazira Takaful lie in population growth, increased demand for health and vehicle insurance, and the expansion of awareness of the importance of cooperative insurance. Government support for Vision 2030 enhances opportunities for expansion into new insurance areas (such as electronic or marine insurance). Risks include rising claims, fluctuations in interest rates affecting investment returns, and capital pressures resulting from new legislation. Intense competition and macroeconomic changes (such as recession or inflation) pose additional challenges for the company, necessitating advanced risk management and effective contingency plans.
Key Products and Services of Al-Jazira Takaful
Al-Jazira Takaful's products cover health insurance for individuals and companies, vehicle insurance (third-party and comprehensive), travel insurance, and some general insurances such as engineering insurance and property risk insurance. The company also offers family life insurance products designed to comply with Sharia. It is working on developing new products that meet the changing needs of the Saudi market, while ensuring service quality and speed of claims processing. The company also focuses on insurance solutions tailored for small and medium enterprises, enhancing its customer base across various sectors.
Future Prospects of Al-Jazira Takaful in the Saudi Market
Indicators suggest that Al-Jazira Takaful is poised for further growth amid increasing demand for cooperative insurance, expansion of the non-oil economy, and rising insurance awareness. The company's success depends on its continued innovation, investment in technology, and regulatory and Sharia compliance. Competition will remain fierce with the entry of new players and shifts in customer behavior, but the company's distinguished position and integration with Al-Jazira Bank provide a solid foundation for local expansion and possibly regional growth in the near future.
Conclusion
In light of the above, it is clear that Al-Jazira Takaful Tadawul represents a successful model for cooperative insurance companies in the Saudi market, benefiting from the support of Al-Jazira Bank, digital transformation, and regulatory and Sharia compliance. The company has demonstrated the ability to grow and enhance capital despite regulatory challenges and strong competition in the sector. The performance of Al-Jazira Takaful stock on Tadawul reflects relative stability with positive movement amid regulatory news and capital increases. However, risks remain amid economic and legislative changes. Therefore, it is important for any investor or follower of the Saudi stock market to utilize the SIGMIX platform to monitor updated analyses and data, and most importantly, to consult a licensed financial advisor before making any investment decision to ensure the appropriateness of decisions to the financial situation and personal goals.
Frequently Asked Questions
Takaful insurance is a cooperative participatory system aimed at sharing risks among members in a manner compliant with Islamic law, where participants pay contributions that are pooled into a common fund used to cover damages or claims. Unlike traditional insurance, which generates commercial profit for the company from the differences between premiums and claims, Takaful is committed to avoiding usury or prohibited speculation. Profits are redistributed to members or used to enhance the fund's reserves, and the system is overseen by a Sharia board to ensure compliance with Sharia provisions.
You can buy Al-Jazira Takaful stock through any licensed broker in the Saudi financial market (Tadawul). This requires opening a trading account with one of the approved brokerage firms, transferring funds, and then placing buy or sell orders through the electronic trading platform. Interested parties should follow the company's news, financial data, and quarterly reports published on the official Tadawul website and the company's page, noting that prices change daily based on supply and demand.
In recent years, Al-Jazira Takaful has adopted a conservative financial policy focused on enhancing capital and reserves rather than distributing cash dividends. Bonus shares are often granted to shareholders during capital increases, as recently occurred at a rate of 30-40%. This policy is due to the financial solvency requirements from regulatory authorities and the company's desire to support long-term growth, a common practice in Saudi cooperative insurance companies.
As of mid-2025, Al-Jazira Bank is the main shareholder in Al-Jazira Takaful with a stake of about 29.36% after purchasing shares from the Solidarity Group. Additionally, there are other founding shareholders from local financial institutions and the Sharia board of Al-Jazira Bank. The distribution of ownership reflects the integration between the banking and insurance sectors, providing the company with a strong financial and administrative base.
Al-Jazira Takaful focuses on health insurance for individuals and companies, vehicle insurance (third-party and comprehensive), travel insurance, and some general insurances such as engineering insurance and property insurance. It also offers Sharia-compliant family life insurance products. The company is developing digital solutions for issuing policies and managing claims, targeting a wide range of clients, including small and medium enterprises.
In 2024 and 2025, Al-Jazira Takaful was affected by the implementation of IFRS 17 international accounting standards and increased financial solvency requirements from the Saudi Central Bank (SAMA). It also experienced changes in capital structure and capital increases through bonus shares. These developments aimed to enhance governance, improve risk management efficiency, and increase transparency in the company's financial reporting.
Al-Jazira Takaful stock ranged between SAR 15 and SAR 25 during 2024-2025, with relative stability and positive movement amid announcements of capital increases or news of Al-Jazira Bank's acquisitions. The stock did not experience sharp fluctuations compared to larger capitalized companies, but it reacted to the company's quarterly results and regulatory developments. Continuous monitoring of the stock page on Tadawul for the latest prices and information is recommended.
Key opportunities include growing demand for Takaful insurance, expansion in health and vehicle insurance, and digital transformation facilitating the acquisition of new customers. Challenges include rising claims, increasing capital requirements under new laws, and fierce competition from other companies in the sector. The company's success depends on its ability to innovate, manage risks, and maintain Sharia and regulatory compliance.
Al-Jazira Takaful has launched modern electronic platforms to provide insurance services and manage claims remotely, improving customer experience and service speed. Digital transformation has helped reduce operational costs and enabled the company to respond to changing market demands. The company is also investing in developing new technological solutions in collaboration with fintech companies, positioning it strongly within the sector.
With government support for Vision 2030 and encouragement for regional expansion, Al-Jazira Takaful has begun exploring partnership opportunities with institutions in Gulf Cooperation Council countries, especially in the general and Takaful insurance sectors. The company has received preliminary approvals for some partnerships in Kuwait or Bahrain, opening new growth prospects outside Saudi Arabia in the future.