Riskybusiness The Saudi Arabian Council of Ministers has issued operating licenses to 13 new insurance companies in a landmark effort to encourage development in the sector.Hamad al-Sayari, the governor of the Saudi Arabian Monetary Authority (SAMA), announced that the new companies would bring approximately SAR2.6 billion ($700 million) into the market with a significant proportion being opened up to investors through initial public offerings (IPOs).Al-Sayari said that the value of these IPOs would be some SAR936 million ($250 million) which he hoped would add more depth to the Arab region’s largest stock exchange, the Tadawul All Share Index (TASI).The commitment to offer stock to the public is part of the license agreement—nine of the companies will offer 40% of their stock, while the proportion intended to be offered by other companies ranges from 25% to 47.49%. “Measures such as this indicate that the authorities are attempting to give both the
