The shares of insurance companies listed in the Qatar Stock Exchange have risen sharply in the last two months, helped by news of a draft law that would make taking health insurance mandatory for expatriates and visitors for availing basic health care service in Qatar.
Since this draft law was approved by the Cabinet on February 24 this year, the ‘All Share Insurance Index’ has outperformed other sectoral indices in the Qatar Stock Exchange. The ‘All Share Insurance Index’, commonly known as the Insurance Index among investors, has jumped by around 13 percent since February 24, which is the highest gain among indices.
The Insurance Index, which had closed at 2320 points on February 24, closed at 2,616 on March 31, registering a gain of around 296 points.
The ‘All Share Insurance Index’ is the index of insurance companies listed on the stock market. The companies include Qatar Islamic Insurance, Qatar Insurance Company, Doha Insurance Group, QLM Life & Medical Insurance Company, Qatar General Insurance & Reinsurance Company, Alkhaleej and Takaful Insurance Company.
The draft law is positive for private health sectors as it will bring in more customers for companies in health care sector which in turn will result in increase in revenue for health insurance companies and other firms in this sector. Other indices of Qatar Stock Exchange have also gained since February 24. All Share Banks & Financial Services Index, which closed at 4,360 points on March 31, has gained by around 7 percent since March 31. Similarly, All Share Consumer Goods & Services Index, which closed at 8075.9 points on March 31, has increased by around 6.6 percent in the same duration. All Share Industrials Index, which closed at 3,321 on March 31, has registered a rise of 6.5 percent. All Share Real Estate Index, which closed at 1,890 points on March 31, has risen by 5.5 percent. All Share Telecoms Index, which closed at 1,058.50 points on March 31, has gained around 2 percent while All Share Transportation Index, which closed at 3507 points has increased by around 5 percent since February 24.
According to draft law, which was discussed by the Shura Council on March 15, health insurance is mandatory to ensure the provision of basic health care services to expatriates and visitors to the country. As per draft law, it is also not permissible to issue an entry visa for an expatriate or visitor, renew it, grant or renew a residence permit, and it is not permissible to employ expatriates, except after submitting proof they hold compulsory health insurance for the duration of the stay.
