The future of the Saudi insurance market: 140 billion riyals by 2030
In a move reflecting the strength of the financial sector in Saudi Arabia, the CEO of the Insurance Authority, Engineer Naji Al-Faisal Al-Tamimi, revealed ambitious expectations for the future of the sector, stressing that the Kingdom is moving forward towards doubling the size of the insurance market to reach more than 140 billion riyals by 2030. This announcement comes to consolidate the Kingdom’s position as one of the fastest growing markets in the region in light of the structural economic reforms.
Record numbers and ambitious targets
Al-Tamimi explained that the national strategy is not limited to increasing market size, but also aims to deepen the impact of insurance on the national economy, with the sector's contribution to non-oil GDP expected to double to 3.6%. This percentage is a vital indicator of the maturity of financial markets and their ability to provide a financial safety net for individuals and companies. In parallel, the plans target increasing the size of risk-based capital to SAR 50 billion, which will enhance the financial solvency of insurance companies and their ability to meet their obligations.
Economic context and Vision 2030
These statements align with the objectives of the Financial Sector Development Program, a key pillar of the Kingdom's Vision 2030. The insurance sector has recently undergone significant transformations, most notably the establishment of the Insurance Authority as an independent regulatory body. This authority aims to unify legislative and supervisory efforts, enhance sector efficiency, and protect the rights of policyholders. This institutional framework is the cornerstone upon which the anticipated growth over the next five years will be built.
Important messages from Davos
Al-Tamimi's remarks came during his participation as part of the Kingdom's official delegation at the World Economic Forum in Davos, Switzerland, a strategic platform for attracting foreign investment. He highlighted the promising opportunities the sector offers global partners, particularly in the areas of insurtech and innovative insurance products. Presenting these figures at an international forum reflects the high level of confidence in the Saudi investment environment and extends an open invitation to major international companies to enter a market characterized by a stimulating regulatory environment and advanced digital infrastructure.
In conclusion, achieving these targets will not only contribute to the growth of numbers, but will also positively impact the quality of life by providing competitive and comprehensive insurance products, thus enhancing economic and social stability in the Kingdom.
