Market Trends of Saudi Arabia Travel Insurance Industry
Increasing Domestic Travel is Driving the Market
The growing number of domestic travelers every year is emerging as one of the major driving factors for the development of the Saudi Arabia travel insurance market. The larger percentage of these domestic travels are mostly for business and religious purposes. Moreover, the presence of Mecca and Madinah, the holiest of Muslim cities, and travel for the hajj, the annual Islamic pilgrimage to Mecca is a mandatory religious duty for Muslims also directly affects the number of domestic travels in Saudi Arabia.
Hajj Pilgrims are driving the Travel Insurance Market in Saudi Arabia
Over the years, oil has helped Saudi Arabia accrue trillions of wealth, but as the globe switches to alternative energy sources, the oil will eventually run out or lose value. The kingdom is aware of this, despite the high price of oil today, and has started a large-scale project to diversify its revenue streams in preparation for a world without oil. One of these is the pilgrimage, an unending monopoly with a potential Muslim market of around two billion people.
The Grand Mosque in Mecca is being enlarged by Saudi Arabia as part of a $21 billion initiative to accommodate 300,000 more worshipers. A year later, Mohammed bin Salman, who was the deputy crown prince at the time, recognized the pilgrimage as a crucial element of a strategy to diversify the Saudi economy by forecasted period
After a two-year break brought on by Covid-19 restrictions, Muslims from all over the world return to Saudi Arabia to conduct the yearly Hajj trip.
