The general insurance market in Saudi Arabia market could grow by up to $US4 billion ($4.86 billion) by 2009 as a result of market reforms, according to analysts.

The Saudi Arabian Monetary Agency’s moves to make health insurance mandatory and implement insurance company legislation are designed to encourage companies to list on the stock exchange and seek licence approval from regulators.

The kingdom’s general and health insurance markets are thought to have benefitted by an initial $US700 million ($850 million) following relaxation of labour regulations and opening up the market to domestic and international investors.

The overall insurance market, including health, could increase from $US1.5 billion ($1.82 billion) to $US8 billion ($9.71 billion) over the next decade, industry experts say.