Saudi Arabia: Women drivers to grow motor business to $8 bln by 2020
Source: Middle East Insurance Review | Apr 2018
The highly competitive motor insurance market in Saudi Arabia should benefit from the influx of women drivers, who will need its products and services. The motor insurance market is expected to grow by 9% annually between 2017 and 2020, reaching SAR30 billion (US$8 billion), according to PwC.
In September 2017, Saudi Arabia announced in a royal decree that it would allow women to drive by June 2018.
The number of female drivers in Saudi Arabia is projected to reach three million in 2020, affecting everything from car sales to motor insurance, car leasing and driving schools – and ultimately the economy, said a report from PwC Middle East, released in conjunction with International Women’s Day on 8 March. The total population of the Kingdom is 32 million.
The three million women represent 20% of the total number of women in the country.
With a new segment of potential customers entering the market, car sales and car leasing are expected to pick up substantially, with an estimated annual growth rate of 9% and 4% until 2025, respectively. The arrival of new female motorists will also require the creation of additional infrastructure and jobs in the automotive sector. M
SAR1 = US$0.27