Saudi insurance stocks soar as Govt lifts ban on women driving
Saudi insurers posted significant gains yesterday, on hopes that insurance volumes will rise as women began driving in Saudi Arabia, in the end of the world’s last ban on female drivers.
This lifted the Saudi exchange, which outperformed other regional markets, and which was still riding the wave of MSCI’s announcement last week that it would add the kingdom’s stock market to its emerging markets benchmark.
Saudi Arabia’s addition could help attract $40 billion from foreign funds, the chairman of the Saudi Capital Market Authority told Reuters last week.
The move followed the decision by another index provider, FTSE Russell, to give Saudi Arabia emerging market status earlier this year.
The Saudi index rose 1.8 percent on Sunday, with gains spread across the insurance, banking and petrochemical sectors.
Women in Saudi Arabia took to the roads early yesterday, celebrating the end of the world’s last ban on female drivers.
The decision to lift the ban in the Kingdom is expected to boost the economy, with industries from car sales to insurance set to reap returns.
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