Dubai is gearing up to form an alliance by signing a memorandum of understanding with South Korea's Samsung Life Insurance.

The alliance can later turn up into a joint venture, which will focus in marketing life insurance products to the Middle East and North Africa (MENA) region, as reported by Financial Times.

The company said that low level of insurance penetration in MENA region prompted to establish its alliance with Dubai, and in later stage, the company has plans to expand its underwriting businesses in sub-Saharan Africa markets.

Having $100bn assets under management (AUM), the South Korean insurer will provide its industry insight to ICD, to flourish its businesses in the region.

ICD and Samsung Insurance are also likely to foray into non-life segment at a later stage, said the company.

According to a report by Alpen Capital, insurance premiums in the Gulf states have been forecasted to grow by 20% a year through to 2015 with life insurance growing rapidly than non-life insurance products.