windfall to cascade through insurance retail and auto sectors
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Windfall to cascade through insurance, retail and auto sectors

Arab Today, arab today

Arab Today, arab today Windfall to cascade through insurance, retail and auto sectors

Windfall to cascade through insurance, retail and auto sectors
LONDON - Arab Today

Saudi Arabia is set to reap an economic windfall as millions of women are allowed to drive in the Kingdom for the first time, in a move that is expected to spur spending across a range of sectors.
Retailers, insurers and car hire companies are among the potential winners from the decision, while employers will be able to overcome one of the main barriers to boosting female participation in the workplace.
Investors inside and outside the Kingdom are today assessing the likely impact of the momentous move on the Kingdom’s $650 billion economy.
John Sfakianakis, director of economic research at the Gulf Research Center in Riyadh, said women driving would give a significant boost to the Saudi economy.
Although difficult to quantify at this stage, the benefits could surpass $150 billion in terms of output gains per year over the medium to long term, Sfakianakis said.
“Just look at how many women will be able to be gainfully employed over time and the multiplier effects of employment on consumption. It’s a new era for Saudi Arabia.”
The move to allow women to drive, announced on Tuesday and set to be implemented by June, is the latest of a string of social and economic reforms in Saudi Arabia.
Analysts expect the move will produce a major economic dividend as more women are able to enter the workplace with the trickle-down impact providing a boost for everything from the insurance sector to banks. There are about 10 million women in the Kingdom over the age of 20.
“We see long-term support for growth in retailers and sellers of discretionary items, due to increased mobility and employment among women in Saudi Arabia,” said Mohammad Kamal, a director at Arqaam Capital.
Increasing female participation in the labor force is a central plank of the country’s Vision 2030 economic diversification blueprint.
“The decision to allow women to drive indicates that the authorities remain committed to implementing their ambitious reform agenda, despite an apparent slowing of economic reform momentum in recent months,” said Dubai-based Emirates NBD in a research paper.
Among the companies picked by Arqaam as potential beneficiaries is Fawaz Alhokair, one of the leading retail conglomerates in the country.
Tawuniya, the insurance group, is also set to cash in as the potential pool of insurable drivers doubles.
Other publicly traded companies picked by Arqaam include Budget Saudi Arabia, Saudi Marketing Co., Abdullah Al Othaim Markets, Al Rajhi Company for Cooperative Insurance and Axa.
Abu Dhabi-based NBAD Securities also sees Fawaz Alhokair as a potential winner as well as retailer Jarir.
“Other industry sectors that could benefit include banks, in the event that the demand for auto loans increase,” said Sanyalaksna Manibhandu, head of research at NBAD Securities in Abu Dhabi.
It is not all upside for the economy however as attention turns to the livelihoods of the hundreds of thousands of men employed as domestic drivers.
“Male chauffeurs may need to find new jobs as female passengers become drivers. If the decree merely leads to the replacement of a chauffeur by the passenger, auto dealers may not see demand increase as much as they would like,” added Manibhandu.
He expects demand for auto insurance to increase and that was reflected in the sharp rise among some publicly traded insurance companies on the Tadawul stock exchange on Wednesday.
Al Rajhi rose almost 7 percent on heavy volumes while car hire firm United International Transportation, also known as Budget Saudi Arabia, jumped 4 percent.
However the overall market retreated by about 0.1 percent as positive investor sentiment over women being allowed to drive was countered by concerns that Saudi Arabia may not be given emerging market status by index provider MSCI this month.
The economic empowerment of women in the Kingdom is a key part of that process.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

windfall to cascade through insurance retail and auto sectors windfall to cascade through insurance retail and auto sectors

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

windfall to cascade through insurance retail and auto sectors windfall to cascade through insurance retail and auto sectors

 



GMT 06:49 2012 Saturday ,01 September

Lamitta Frangieh on her \'Facebook Romance\'

GMT 08:26 2017 Wednesday ,08 February

Qatar spending $500m a week on World Cup projects

GMT 17:00 2017 Tuesday ,27 June

Saudi Arabia rebuts fake news on Turkey, Israel

GMT 10:31 2016 Monday ,12 December

Second Sydney airport cleared for take off

GMT 05:27 2017 Sunday ,16 April

GIB Capital wins 4 EMEA Finance Awards

GMT 13:58 2016 Friday ,30 December

Australia beat Pakistan to win Test series

GMT 10:07 2017 Monday ,17 April

Mark Hamill would like to play George Lucas

GMT 12:10 2016 Tuesday ,13 December

Over 30 dead as Kenya tanker crashes, explodes

GMT 02:13 2017 Monday ,25 September

December22nd-January20th

GMT 15:39 2017 Tuesday ,03 October

Bangladesh rescues 20 Rohingya held by racket gang

GMT 02:51 2017 Friday ,10 November

Under siege, Syria doctors forced to improvise care

GMT 12:18 2015 Tuesday ,14 July

Russia sack Capello as national team coach

GMT 16:07 2017 Saturday ,26 August

ISIS Claims Attack on Shiite Mosque in Afghanistan

GMT 13:47 2017 Monday ,27 February

China blue chips post worst day in 2 months

GMT 02:56 2017 Tuesday ,25 July

President Jokowi performs Eid Prayers in Padang

GMT 16:21 2017 Tuesday ,03 October

Sisi greets Guinea on independence anniversary

GMT 04:18 2017 Saturday ,16 September

Kim and Kanye expecting third baby via surrogate
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday