The Role of Insurance Sector in the Development of the Economy of Oman

Abstract

Financial mediators carry out the function of directing saving into domestic investment. They simplify effectual distribution of capital resources, which on the other side increase productivity and improve economic effectiveness which leads to decrease capital output ratio. The insurance sector performs exceptionally useful function in economy as financial intermediaries. This paper examined the role of insurance sector in Oman economy using real gross domestic product (GDP) as representative for Oman economy performance (economic growth). The central objective of the paper is to scan the role of insurance sector on economic growth in Oman, using secondary data (time series) for the period 2008-2017, a total of 10 observations, were used. Data is collected from the various sources, security market in Muscat (MSM) annual reports and the annual reports of the central bank of Oman. The method used includes the implementation of multiple regression analysis to explain the role of the insurance companies on the Omani GDP. The results so far showed that there is a positive relationship between insurance sector and economic growth in Oman for the considered period. So the main recommendation is that, Oman should give more attention to the financial sector development with more concentration on insurance sector development to grantee economic growth.

An Empirical Investigation of the Relationship Between the Insurance Industry and the Economic Growth in Turkey

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The Effect of Insurance Premium on Economic Growth in European Union Countries: Panel Data Analysis

“…It was found out that there was a positive connection between the development of insurance business and economic growth. Hussein and Alam (2019) examined the role which the insurance sector takes in the development of Oman economy between the years 2008-2017. They came out with the result that there was a positive connection between the business of insurance and economic development in Oman for that period of time.…”