Mumbai: Saudi Arabia has issued licences to 13 new insurance companies, ending the current monopoly of the National Company for Cooperative Insurance. The new licensees include an Indian joint venture Saudi Indian Insurance.

Life Insurance Corporation of India, its foreign arm LIC International and the New India Assurance Co have joined to set up the joint venture company with Saudi partners to offer life and non-life insurance products to NRIs and other residents.

The setting up of the SR100 million Saudi Indian insurance was announced during the visit of finance minister P Chidambaram to Riyadh in April 2005.

Other licensees include Gulf Union Cooperative Insurance, Arabian Shield Insurance, Sanad for Cooperative Insurance, Saudi United Cooperative Insurance (Amity) and Assurance Saudi Fransi.

"The Cabinet approved a request from the minister of commerce and industry to license 13 joint stock companies for cooperative insurance," the Saudi Press Agency reported, quoting a cabinet statement.

This is part of the country's moves to open up its market after joining the World Trade Organisation (WTO) and will change Saudi Arabia's insurance market, creating thousands of jobs.