A report by PwC notes that social and economic benefits are expected to flow from decision to allow women to drive
RIYADH, March 8 (CIC) – Saudi Arabia has announced in a Royal Decree signed by King Salman bin Abdulaziz last September that women would be allowed to drive by June 2018. This historic and proactive decision is slated to impact market opportunities in the automotive industry, according to a report released by a leading consulting company on Thursday for the occasion of International Women’s Day.
A report by PwC titled Women driving the transformation of KSA automotive market that presents a great number of key points addressing how women drivers will positively affect the economy.
With women expected to begin driving in June of this year, the number of cars and drivers on Saudi roads are expected to increase significantly, fueling social change while greatly benefitting the automotive industry.
The release of PwC’s report coincides with the International Women’s Day, a commemoration that is acquiring more significance for Saudi women as their role in Saudi society and the Saudi economy grows under reforms ushered by the Vision 2030, spearheaded by Crown Prince Mohammed bin Salman.
The report estimates that some 3 million Saudi women will be licensed to drive by 2020while the number of licensed male drivers on the road will increase from 9 million to 9.5 million. The increase, especially of female drivers, will exert positive effects on various sub-sectors of the automobile industry.
Although, the Riyadh-based Princess Nourah University, the world’s largest all-female university, announced last year that it would open a driving school for women, it is expected that the growth of driving schools could be as much as 50 per cent. With the growth expected to come almost entirely in female-only schools, there will be plenty of positions to be filled by women instructors.
Hala Kudwah, PwC Saudi Arabia Financial Services & Consulting Leader, said that Saudi women “have been behind numerous achievements and now visibly behind the wheel … we are mindful of the significance of early successes to fully reap the fruits of this milestone in the women empowerment journey.”
Car sales are also expected to increase from an average of 3% per annum over the past four years to 9 per cent per annum through 2025 while car leasing will double from the current 2 per cent per annum to 4 per cent per annum. Automobile-related insurance sales are also expected to increase by some 9 per cent yearly.
The release of the report coincides with the inaugural visit by Crown Prince Mohammed bin Salman to the United Kingdom.
For more information and complete access of the report: https://www.pwc.com/me/womendrivinginsaudi