BUSINESS LIFE conducted an interview with Engineer Saleh Bin Rashed Al Dhaheri, Chairman of the Executive Council of the GCC Insurance Federation (GIF) and Chairman of the Emirates Insurance Association (EIA) and member of the Board of Directors of Al Dhafra Insurance Company.
No matter what we talk about the State of the United Arab Emirates, we will not be able to justify its right especially that it is a young State as mentioned Engineer Saleh Bin Rashed Al Dhaheri, Chairman of the Executive Council of the GCC Insurance Federation (GIF) and Chairman of the Emirates Insurance Association (EIA) and member of the Board of Directors of Al Dhafra Insurance Company that the United Arab Emirates (UAE) is a great example for the neighboring countries and the world. He added by saying that the United Arab Emirates is in a globalization race thanks to the Emirates principle of equal distribution of wealth and the availability of modern services. Eng. Saleh bin Rashed Al Dhaheri is characterized by his seriousness, perseverance, contributions and he is also known for being highly responsible in his duty and he has displayed high degree of efficiency in performing his national responsibility in all the difficult tasks which he was entrusted. He is reputed by his conscientious work while facing commercial and cultural problems and challenges. Sheikh Saleh has excelled in all his public and private projects and ventures. The long experience of Engineer Al Dhaheri and the variety of his businesses played a prominent role in the success of his mission as head of Emirates Insurance Association as well as President of Gulf insurance Federation whereby his business diversified in the field of education, engineering, construction and investment. Additionally, he has various contributions in the establishment and management of public and private commercial and industrial investment. Despite his private concerns, he had time to organize his social responsibilities and his beneficial contributions through his involvement in the associations of public benefit, such as the Emirates Traffic Safety Association in which he is the Vice President. This association organizes traffic awareness programs for road users. Eng. Saleh bin Rashed Al Dhaheri is in the process of establishing an association for the protection of children from internet threats. This association is a global association with branches in other countries and it is based in the UAE and it is concerned in raising awareness programs and campaigns as well as spreading the education for the optimal use of the internet. His presence as a member of the Board of Directors of Abu Dhabi Chamber of Commerce & Industry and his election as Vice-Chairman of the Board of the Arab French Chamber had an evident impact in achieving perfect business operations and strengthening trade and economic exchange with various countries of the world and also enriching its various business and activities.
BL: What is your opinion on the remarkable achievements of the UAE?
Engineer Saleh Bin Rashed Al Dhaheri: The UAE has managed to grab the lead in the business environment and economic activities thanks to the investment climate and support of our wise leadership which facilitated laws regulating business making. The UAE's rank seventh globally and the first among the Arab countries. Furthermore, the UAE is aware of the hidden interests of the human race as a basis for development through providing various training and education programs.
BL: As a former Chairman of the Industry Committee at the Chamber of Commerce and Industry and holding a B.S. in industrial engineering from the United States, what is your outlook for the industry in the UAE? Engineer Saleh Bin Rashed Al Dhaheri: The industry has evolved in the past ten years at a rapid pace so that its contribution to the GDP reached to 18% and in particular the manufacturing industries where modern technology (technology transfer) contributed to opening foreign markets through export institutions as well as the conversion of the funds industry. This led to the enhancement of the business environment through legislations and regulations governing the industry and all this had a positive role on foreign direct investment and I hope to see an independent body for this industry. The seaports and the airports as well as the country's World Trade Center led to the development and the diversification of the industry in UAE as well as to the creation of specialized industrial zones such as The Industrial City of Abu Dhabi, Khalifa Industrial City and Jebel Ali and many others which contain many industries and logistics to support and employ thousands of people. I hope to see the proportions of employment of local talents increase. The chemical and petrochemical industries depend as raw material or energy source on the wealth of natural gas and oil. Hence, it is required to establish mega industries and regional public shareholding companies are being set up, and I hope that we can benefit through trade agreements to support exports.
BL: What is the role of oil in the UAE's economy?
Engineer Saleh Bin Rashed Al Dhaheri: U.A.E. is the eighth-largest oil producer in the world. Oil and gas are the main engine and the supporting revenue for the economies of the Gulf region, it is the main contributor to GDP of all the GCC countries and it is a global commodity influenced by global economic conditions, political events, inventory management and more. The United Arab Emirates managed its oil revenues wisely, and it founded Abu Dhabi Investment Fund so that it is now the second largest sovereign Fund in the world and also it established the oil industry and the petroleum investment companies and the various investment institutions. UAE government sees that the most important aspect is investment in human capital and the projects of development and housing had a large share. It is normal that the State is affected by low oil prices as is the case with the rest of the GCC States and other States relying on oil as a major source of income, but its impact on the country is not great for the fact that its contribution to the total GDP is less than 40% and we did not notice any cancellation or suspension of certain projects and development plans are processed as planned, I believe that the time is now appropriate to develop oil projects because of the present lower cost and the idea of buying oil companies outside the country is possible. The country did not overlook alternative sources of energy, the government established Masdar- a sustainable alternative energy as well as Baraka nuclear power station.
BL: When was Emirates Insurance Association (EIA) founded and what are its major accomplishments?
Engineer Saleh Bin Rashed Al Dhaheri: Emirates Insurance Association was founded in 1988. The objective of its establishment was to regulate the insurance market and to improve the insurance industry in general. This was clear from the results of the UAE insurance market which became the largest market at the level of the Arab countries as premiums jumped from 800 million Dirham in 1988 to more than 30 billion Dirham in 2014. Furthermore, the insurance companies had a positive role in the economic development of the State and its renaissance construction megaproject. Through the board of directors and the technical committee and the rest of the other committees, the association managed in cooperation with the 60-member insurance companies to operate as one team and has contributed aggressively in the drafting of laws relevant to insurance with the legislators in the country. EIA signed a cooperation agreement with the Ministry of Interior and also it has established joint committees with the Insurance Authority as well as with the Ministry of Health. Emirates Insurance Association is a key member of the General Arab Insurance Federation (GAIF), the Afro Asian Insurance and Reinsurance Federation (FAIR), International Union of Marine Insurance and Fire Protection Association (FPA) in London. Additionally, there are international cooperation agreements with a number of similar associations in Tunisia, Jordan and Egypt. EIA has been able, through the signing of an agreement among the member companies to reduce tremendously the amounts of retries among companies and avoid entering in court cases. The association encouraged member companies to obtain the financial appropriations, international ratings and certificates of excellence and the companies also got a good number of these certificates and rating. There is awards ceremony which is held annually in the area of technical research related to insurance. There are 4-6 international specialized seminars carried out annually discussing global and local issues. EIA is represented in the Committee on development of human resources in the insurance sector, and it is established by a decision of the Council of Ministers, where the proportion rose from 4% before 3 years to 10% in 2014 and there is a current plan for lifting it to 30% in 2015. Emirates Insurance Association established a unified office called Orange card in cooperation with the General Arab Insurance Federation to facilitate the required procedures for holders of the orange card in the UAE for the mobility among Arab countries.
BL: When was the Gulf Insurance Federation founded and what are its milestones?
Engineer Saleh Bin Rashed Al Dhaheri: Gulf Insurance Federation was founded in 1993 with the objective to establish coordination and cooperation among Gulf insurance companies which its market constitute more than 60% of the Arab markets through standardization of rules and documentations. We hold periodic meetings to coordinate positions with regard to the re-insurance companies and their relationship with the Gulf market to get the best price. The Gulf Insurance Federation and Emirates Insurance Association hold an annual high level conference in which international companies discuss topics of interest to the insurance industry. Finally, there is a tendency to set up a Gulf reinsurer company with a capital of 10 million Dirham subscribed by the Gulf and Emirates insurance companies and also the member insurance companies.
