In Bahrain, Islamic insurance rests on a dedicated framework: the TA module of the Central Bank of Bahrain Rulebook, which has governed takaful and retakaful since 2005 and applies to operators on the regulator's official list of licensees.
A single central bank regulator
The Central Bank of Bahrain replaced the Bahrain Monetary Agency in September 2006. It supervises banks and insurers, including takaful and retakaful companies, through Volume 3 of its Rulebook, which is devoted to insurance.
The TA module, core of the framework
The TA module, entitled Takaful / Retakaful, is a directive issued under Article 38 of the 2006 law on the CBB and financial institutions. It sets the rules specific to Bahraini Islamic operators, separate from those for conventional insurance.
Twenty years of regulatory change
Published in April 2005 by the BMA, the module was incorporated into the CBB Rulebook in January 2007, amended in 2011, strengthened in 2014 on the operating framework and solvency, then aligned in May 2026 with a new FP module.
Solvency and participant protection
The 2014 update tightened solvency requirements for Bahraini takaful funds. For the customer, this framework determines the ability to pay claims and the way the surplus of the participants' fund can be returned.
The official list of licensees
The external list published by the CBB as at 30 July 2026 notably includes Medgulf Takaful for family takaful, along with Takaful International, Alhilal Takaful, Solidarity Bahrain and Gulf Union Insurance & Reinsurance for general takaful.
Banking and technology players
The same list shows Gulf Insurance Group (Gulf), Kuwait Finance House, Batelco Financial Services, STC and InsurTech in the takaful category. As the document layout is unclear, it is best to confirm the exact licence type with the central bank.
Solidarity Bahrain, the leading Islamic insurer
Listed on Bahrain Bourse under the code SOLID.BH, Solidarity Bahrain is presented as the kingdom's largest sharia-compliant insurer. In the first quarter of 2026, its takaful contributions reached 26.96 million dinars, up 97%.
Rising results
Over the same period, Solidarity Bahrain posted a net profit of 1.83 million Bahraini dinars, up 46%. Such public data help assess an operator's financial strength, a criterion just as important as the sharia compliance of the product.
Family takaful and general takaful
The CBB list draws a distinction between family takaful, which covers risks relating to the person, and general takaful, which is intended for property and liability. Protection and savings arrangements are explained in detail in family takaful.
Retakaful provided for in the rules
The TA module expressly covers retakaful, meaning the Islamic reinsurance of operators. For a Bahraini policyholder, this means the participants' fund can transfer part of its large risks to a compliant reinsurer, limiting its exposure to exceptional claims.
Market data to handle with care
The total size of the Bahraini takaful market is not published in any recent consolidated source that we have verified. Available figures come from listed companies such as Solidarity Bahrain; they describe one player, not the sector as a whole.
Placing Bahrain within the Gulf
Bahrain stands out for a takaful framework built into its central bank rules since 2005. Residents of the region can compare with Islamic insurance in Saudi Arabia or Kuwait's takaful companies.
Checking and buying a takaful policy in Bahrain
- Look up the company's name on the external list of licensees published by the Central Bank of Bahrain.
- Check whether the licence covers family takaful or general takaful, depending on the contract you have in mind.
- Ask for the management model, wakala or mudaraba, and the rulings of the Bahraini operator's sharia committee.
- Compare the contribution, management fees and surplus sharing rule set out in the general terms and conditions.
- Review the published results of listed companies, such as Solidarity Bahrain, to judge their financial strength.
- Report any claim in writing within the contractual deadlines and keep a copy of every document sent.
Cost structure of a Bahraini takaful policy
| Item | What it is for | Main variables |
|---|---|---|
| Tabarru contribution | Funds the participants' pool | Nature of the risk and sum insured |
| Wakala fee | Pays the operator for management | Rate announced by the company |
| Mudaraba share | Rewards investment management | Return on compliant assets |
| Retakaful cost | Protects the fund against large claims | The operator's reinsurance programme |
| Surplus | Excess that may go back to participants | Claims experience and written clauses |
Supporting documents required in Bahrain
- Bahraini identity card (CPR) or passport with residence permit
- Proof of address in Bahrain
- Vehicle registration card for motor cover
- Title deed or lease for an insured home
- Medical questionnaire for family takaful
- Islamic financing contract, murabaha or ijara, where the policy secures it
Mistakes to avoid in Bahrain
- Signing with a company missing from the CBB list of licensees, trusting an advert claiming to be "sharia-compliant".
- Confusing a family takaful licence with a general takaful licence, which do not cover the same Bahraini risks.
- Reading the central bank's PDF list too quickly, when its layout makes some categories ambiguous.
- Judging an operator on contribution growth alone, without looking at its profit and solvency.
- Assuming a surplus will be paid out without a contractual clause setting out how it is shared among participants.
What people often ask about Bahraini takaful
Which text governs takaful in Bahrain?
The TA module, Takaful / Retakaful, in Volume 3 of the Central Bank of Bahrain Rulebook. Issued under Article 38 of the 2006 law, it dates from April 2005 and was updated in 2011, 2014 and May 2026.
Which takaful companies are licensed in Bahrain?
According to the CBB list as at 30 July 2026: Medgulf Takaful, Takaful International, Alhilal Takaful, Solidarity Bahrain, Gulf Insurance Group (Gulf) and Gulf Union Insurance & Reinsurance, among others. Check the most recent version of the list before signing.
Is Solidarity Bahrain a listed company?
Yes, it is listed on Bahrain Bourse under the code SOLID.BH. In the first quarter of 2026, it recorded 26.96 million dinars in takaful contributions and a net profit of 1.83 million, according to the report published by the exchange.
Does the Bahraini framework cover Islamic reinsurance?
Yes, the central bank's TA module also regulates retakaful. Operators can therefore cede part of their risks to a licensed Islamic reinsurer, which contributes to the stability of the participants' fund.