GCC states becoming more vulnerable to flooding due to climate warming

The Middle East region is facing increasing risks from natural catastrophes due to ongoing economic development and rapid urbanization, according to a report by Swiss Re Institute (SRI). The report, titled “Middle East Outlook: Diversification to Drive Economic and Insurance Market Growth,” highlights the need for increased insurance coverage to protect infrastructure and private assets from the growing threat of natural disasters.

Many cities in the Gulf Cooperation Council (GCC) states are located on the coast, making them vulnerable to flooding from rising sea levels and tropical storms as the climate warms. While the region is known for its desert climate, recent events like the floods in the UAE and Oman have shown that “wet” weather catastrophes like floods and cyclones are not uncommon.

Pakistan, on the other hand, faces the risk of earthquakes, adding to the region’s vulnerability to natural disasters. The report emphasizes the importance of raising awareness about these risks and encouraging the uptake of insurance coverage to mitigate the financial impact of such events.

Over the last 30 years, Saudi Arabia, Oman, and Pakistan have experienced the heaviest economic losses from natural disasters in the region. Flooding has been identified as the main peril, followed by tropical cyclones. Pakistan, in particular, has borne the brunt of economic losses, accounting for around 80% of the region’s losses over the past three decades.

Oman is identified as the most exposed to tropical cyclones, having been impacted by seven major events in the last 30 years, with Cyclone Gonu in 2007 being the costliest event. The country is also prone to flash floods, further highlighting the need for comprehensive insurance coverage.

Pakistan, on the other hand, is deemed the most exposed to natural catastrophes in the region. The country has faced costly events such as monsoon floods in 2022 and a devastating earthquake in 2005, underscoring the importance of preparedness and risk mitigation strategies.

Saudi Arabia, meanwhile, is mostly exposed to flash floods, with the costliest flood event occurring in 2011 and affecting the city of Jeddah. The country’s vulnerability to such events underscores the need for proactive measures to protect lives and property.

In conclusion, the SRI report highlights the urgent need for increased insurance coverage in the Middle East region to safeguard against the growing risks posed by natural disasters. By raising awareness, encouraging uptake of coverage, and implementing risk mitigation strategies, countries in the region can better protect their economies and communities from the financial impact of future catastrophes.