LONDON: Retailers, insurers and car hire companies are among the potential winners from the decision to allow women to drive in Saudi Arabia.
Investors inside and outside the Kingdom are today assessing the impact of the momentous move on the Kingdom’s $650 billion economy.
Saudi Arabia on Tuesday said it would allow women to drive in the Kingdom, in the latest of a string of social and economic reforms in the country as it seeks to modernize.
Analysts expect it will produce a massive economic windfall as more women are able to enter the workplace with the trickledown providing a boost for everything from the insurance sector to banks.
“We see long term support for growth in retailers and sellers of discretionary items, due to increased mobility and employment among women in Saudi Arabia,” said Mohammad Kamal, a director at Arqaam Capital.
Among the companies picked by Arqaam as potential beneficiaries are Fawaz Al Hokair, one of the leading retail conglomerates in the country.
Tawuniya, the insurance group is also set to cash in as the potential pool of insurable drivers doubles.
Other publicly traded companies picked by Arqaam include Saudi Budget, Saudi Marketing, Al Othaim, Al Rajhi and Axa.
Abu Dhabi based NBAD Securities also sees Al Hokair as a potential winner as well as retailer Jarir.
“Insurance stocks were surging yesterday, when the market first learned of the official announcement, as demand for auto insurance coverage is expected to increase,” said Sanyalaksna Manibhandu, head of research at NBAD Securities in Abu Dhabi.
“Other industry sectors that could benefit include banks, in the event that the demand for auto loans increase. On the flip side, male chauffeurs may need to find new jobs as female passengers become drivers. If the decree merely leads to the replacement of a chauffeur by the passenger, auto dealers may not see demand increase as much as they would like.”
The economic empowerment of women in the Kingdom is seen as a crucial part of that process.
King Salman issued the decree, according to a royal court statement carried by the Saudi Press Agency (SPA).
“The royal decree will implement the provisions of traffic regulations, including the issuance of driving licenses for men and women alike,” the SPA said.
The decree highlighted the “negative effects of not allowing women to drive vehicles.”
Saudi Arabia’s ambassador to the US, Prince Khaled bin Salman, described the decision of allowing women to drive as a “huge step.”
Investors pick winners from end of Saudi women driving prohibition
Investors pick winners from end of Saudi women driving prohibition
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PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025
RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.
According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.
Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries.
The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.
AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.
AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.
Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”
He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”
Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.
AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance.
Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.
