The insurance sector (Commercial or Takaful) has an important role in the national economy. It supports and contributes in improving the economy and the economic development. This study compares between commercial insurance and takaful, and their impact on economic development. In this study we try to define the similarities and the differences between commercial insurance and takaful, and the effect on economic development, trying to reach applicable objective recommendations that contributes to the insurance sector in Syria and helps insurance companies to do the best in supporting the national economy and the economic development.