Takaful Operating Model

EmiratesRE is operating as a retakaful provider out of the Dubai International Financial Centre (DIFC) and under regulation of the Dubai Financial Services Authority (DFSA). The company operates a Wakala model for managing the retakaful portfolio on behalf of the participants. The Wakala percentage is determined with reference to budgeted, general and administrative expenses plus reasonable margins. The determined percentage is verified and approved by the Shari’a Supervisory Board of the company. For financial year 2016, the Wakala percentage applied is 7.5% of the gross contribution.

In addition we use the Mudaraba model for managing the investment portfolio of the participant’s fund. The adopted percentage for this year is 80:20 for the participant and operator respectively. This model is Shari’a-compliant and is approved by our Shari’a Supervisory Board.

We believe this is the fairest and most transparent operating model, at the same time giving incentives for profitable attractive returns for all stakeholders. The Wakala and Mudaraba parameters are under regular revision by Management, Board and the Shari’a Supervisory Borad to assure the company`s fair treatment of all involved parties.