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A fifth of women population in Saudi Arabia is expected to drive by 2020, creating new opportunities for car manufacturers, insurance firms, investors and job seekers, according to a PwC report.
Saudi Arabia’s female population is projected to reach 15 million in 2020, 20 percent of which are projected to drive based on their age and income qualification, the report said.
"There would be dependencies such as necessary infrastructure and services to support female drivers; for example, women driving instructors, driving schools, licenses issuance, etc,” said Hala Kudwah, PwC Saudi Arabia Financial Services & Consulting Leader.
“However, we are mindful of the significance of early successes to fully reap the fruits of this milestone in the women empowerment journey,” she added.
Last September, the government took a historic decision to allow women to drive from June 24 this year.
According to PwC, increasing car sales, insurance revenues, car leasing and the setting up of new women-only driving schools are other prominent business avenues.
Car sales and car leasing are expected to pick up substantially, with an expected annual growth rate of 9 percent and 4 percent until 2025, respectively.
On the other hand, the highly competitive motor insurance market will benefit from the new women drivers by creating opportunities for new motor insurance providers, products and services, in addition to reshaping the motor insurance landscape.
“The motor insurance is expected to grow by 9 percent annually between 2017 and 2020 to reach SAR 30 billion,” PwC said.
Moreover, the report said there was an opportunity to increase the number of driving institutions by more than 50 percent by 2020, creating job opportunities for female driving instructors.
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