Arab World to align with Insurance core principles?
             Insurance development in an emerging market like Arab World encompasses a wide range of activities, including institution-building, developing new instruments and mechanisms, in addition to creating and improving legal and regulatory frameworks. Consumer awareness and protection should be a bye product of the process to avoid the syndrome of a swinging pendulum. In the past, the regulator's scope of activity in this area has been focused primarily on developing legal and regulatory frameworks. Insurance transactions, with a high demonstration effect, contribute to consolidating market reforms and shorten the markets' learning curve, by transferring financial structuring know-how and market instruments from major markets.
             Insurance Industry needs special attention in Arab World because it triggers and sustains fast economic growth; alleviates poverty; promotes equitable development; generates large employment opportunities; provides competitive edge to large-scale companies; facilitates innovation and cost reduction; promotes exports; develops and promotes indigenous technology; and gives better understanding of human life value. Insurance plays very significant role in terms of balanced and sustainable growth, employment generation, development of entrepreneurial skills and contribution to export earnings so very essential for this part of the globe. Middle East countries are doing well economically but there are volatility and vulnerability as seen from the GDP growth table 1 below:
             Table 1: The GDP growth rate of Middle East Countries; Real Gross Domestic Product (GDP) Growth 1994-98 (%)
             Saudi Arabia -0.60 2.00 5.00 3.50 1.60
             The spirit of times has precipitated Basle accords for a healthy regulatory regime. It is the spirit of man, which has to carry them forward in local context. To contribute to economic growth, efficiently allocate resources, manage risk, and...