Insurance stocks one of the worst performing sectors on Tadawal for the year to date outperformed other classifications on Sunday
Saudi insurance stocks surged with investors expecting the sector to reap significant dividends following the lifting of the ban on female drivers.
Insurance stocks closed 2.4 per cent higher, compared with a 1.8 per cent rise for the Kingdom’s headline index.
Amana Insurance and AlRajhi Takaful were the best performers of the day, gaining 9.9 per cent each and Tawuniya, the Kingdom’s largest insurer, ended Sunday 1.1 per cent higher, with only one of the country’s 33 listed insurance providers closing lower for the day, reported Arab News.
The lifting of restrictions on female drivers came into effect on Sunday after first being announced in September 2017 and is part of a series of wide-ranging reforms introduced as part of Saudi Arabia’s Vision 2030 economic transformation programme, designed to diversify the economy away from a reliance on oil revenues.
The advent of women drivers is forecast to benefit the economy by significantly increase female participation in the workforce, and stimulating financial, insurance and retail sectors among others.
The insurance sector is set to draw particular benefit from the move, but may remain under pressure, according to rating agency S&P, Arab News reported.