Family Takaful in Developing Countries: the Case of Middle East and North Africa (MENA)

Mohamed Sherif

Research output: Contribution to journalArticlepeer-review

17 Citations (Scopus)


Purpose: Using a sample of fifteen countries from the Middle East and North Africa (MENA), we investigate the driving forces (economics and socio-demographic) that influence family Takaful demand in MENA region.

Design/methodology/approach: We use multivariate analysis, Bootstrapping and Generalised Method of Moments (GMM) techniques. We first examine a full model that combines all variables; second, a model that controls for product market factors; and finally, a model that controls for socio-demographic factors. We further separate all models into linear and log-linear demand functions.

Findings: We demonstrate that the relationship between the demand for family Takaful in MENA and Islamic banking deposits, education, dependency rate, female life expectancy and Muslim population is significantly positive. On the other hand, the significant factors that are inversely related to the demand for family Takaful in MENA are inflation, financial development and male life expectancy.

Research limitation and implications: The crucial limitation of this study is the amount of data available in regards to our dependent variable, family Takaful contributions. Consequently, to improve the understanding in explaining the family Takaful demand in MENA, further research can take advantage of expanding the variables that were omitted in this research as a consequence of the unavailability of data. Some of the possible influential variables can include government social security expenditure, legal system and government policies, price of Takaful and level of competition within the Takaful and insurance industry.

Originality/value: It is obvious that there are very few studies that focus on MENA market and indeed, none of them gives attention to the factors that influence demand for family Takaful. While this study is expected to provide more understanding and awareness on the concept of Takaful and the factors that influence its demand, we hope that it would encourage more studies on various issues on the Takaful industry so as to help researchers to understand more aspects of this new emerging business.
Original languageEnglish
Pages (from-to)371-399
Number of pages29
JournalInternational Journal of Islamic and Middle Eastern Finance and Management
Issue number3
Publication statusPublished - 21 Aug 2017


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