Female Saudi drivers to spike car sales and insurance growth 9%
When Saudi announced last September that it would allow women to drive by June 2018, this opened up several opportunities for women themselves but also for strategic investors, motor insurance companies, car leasing companies, and others.
A recent report published by PwC Middle East on the occasion of International Women’s Day entitled “Women driving the transformation of KSA automotive market”, looked into key opportunities for the automotive market in Saudi Arabia.
The report identified 4 key areas: The first is creating new job opportunities for Saudi nationals, second, incremental capital investment to build new road infrastructure, third an increase in insurance revenue as insurance premiums will be recalculated, and finally establishing new women – only driving schools.
Car industry impact
Car sales and car leasing are expected to pick up substantially, with an expected annual growth rate of 9% and 4% until 2025 respectively, according to PWC.
“The highly competitive motor insurance market will benefit from the new women drivers as it creates opportunities for new motor insurance providers, products and services, in addition to reshaping the motor insurance landscape,” said PWC.
“The motor insurance is expected to grow by 9% annually between 2017 – 2020 to reach $8.1bn.”
According to the report, 20% of Saudi women or 3 million will drive by 2020.
Said Hala Kudwah, PwC Saudi Arabia financial services and consulting leader: “Our analysis tells us that there’s an opportunity to increase the number of driving institutions in the kingdom by over 50%, an increase that will be translated into job opportunities for our females.”