BlueFive Capital’s insurance acquisition is set to reshape Saudi Arabia’s insurance market, as the Abu Dhabi-based investment firm prepares for a major consolidation move early next year. CEO Hazem Ben-Gacem highlighted the fragmented nature of the Saudi sector and the opportunity for growth through acquisitions and technology.
Rapid Growth in Saudi Insurance Market
Saudi Arabia’s insurance industry has experienced rapid expansion, with gross premiums rising 73 percent from 2019 to 2023 to reach SAR65.5 billion ($17.5 billion). Despite this, the market remains fragmented and less advanced in automation compared to global peers. Top players like Tawuniya and Bupa Arabia control just over half of the market, leaving room for consolidation. Fitch Ratings forecasts increased mergers and acquisitions to streamline the industry further.
Strategic Acquisition and Digitization Plans
BlueFive Capital plans to leverage this consolidation potential by acquiring smaller insurers and upgrading the market with better data and automation. The firm raised $2 billion in its GCC private equity fund and has stakes in regional firms like Wusoom Holding and Sidra Capital. Partnership with Sidra Capital includes cross-shareholding and joint management, helping BlueFive strengthen its foothold in the region.
Industry Expert’s View on Growth Potential
Ben-Gacem describes the Saudi insurance sector as “sleepy” but full of promise, emphasizing that modernization through digitization can accelerate growth. BlueFive Capital aims to close the gap with international markets by combining investment expertise with innovative technology to streamline operations and boost efficiency.
Positioning for Market Leadership
With strong backing from Bahrain’s Mumtalakat sovereign fund and clear acquisition intentions, BlueFive Capital is positioned to lead Saudi Arabia’s insurance consolidation and modernization. Its approach focuses on capitalizing on rising premiums, fragmented competitors, and digitization opportunities to reshape the industry landscape.
