The Middle East’s “retakaful” market–reinsurance covering takaful insurance (direct insurance that complies with Islamic law)–continues to expand dramatically.  Takaful insurers are required to purchase reinsurance from companies that comply with Islamic law, unless such coverage is unavailable from those companies.  Since 2004, the retakaful market has increased from approximately $300 million in premiums to approximately $1 billion today.  Most industry experts believe that the demand for reinsurance covering takaful insurers will only continue to increase as the Middle East grows commercially.  Given the lack of capacity in the retakaful market, many reinsurers from all over the world are now seeking to develop business units that comply with Islamic law and can offer this type of cover.