Saudi insurance sector to see more mergers in 2021: SAMA official

The insurance sector is relatively new in the Kingdom and lacks adequate competency. (AFP file photo)
Short Url
Updated 08 December 2020
Follow

Saudi insurance sector to see more mergers in 2021: SAMA official

Saudi Arabia’s insurance sector is expected to witness more mergers in 2021, Al-Arabiya TV reported, citing Abdullah Al Towaijri, Head of Insurance Companies Control Department at Saudi Central Bank (SAMA).

Al Towaijri noted that the insurance sector has reached a stage of maturity to recognize the need for consolidation of capital.

Merger is a feasible option for small-cap insurers to raise their capital, he said, adding that it is also an excellent option to form stronger financial entities amid the large number of players in the market.

The insurance sector is relatively new in the Kingdom and lacks adequate competency, and given the large number of players the available competencies are distributed, Al Towaijri said.

Mergers help concentrate the competencies and create more financially solvent entities that offer better and innovative services and products, he added.

SAMA provides support and advice for companies that seek to merge, said the official, adding that foreign insurance companies are part of the market and are free to assess available options for expansion.

The Saudi insurance market has seen the merger between Walaa Cooperative Insurance Co. and Metlife AIG ANB Cooperative Insurance Co. in March. Meanwhile, Gulf Union Cooperative Insurance and Al Ahlia Insurance announced on Dec. 6 the effectiveness of the merger resolution, according to Argaam data.

Powered by Argaam


Saudi Absher platform delivers over $5.3bn in annual economic impact 

Updated 18 December 2025
Follow

Saudi Absher platform delivers over $5.3bn in annual economic impact 

RIYADH: The Saudi government’s Absher digital services platform generates more than SR20 billion ($5.3 billion) in annual economic impact, highlighting the scale of savings created by the Kingdom’s transition from paper-based government procedures to digital services, according to the Ministry of Interior. 

Speaking to Al-Eqtisadiah, Bandar bin Mashari, assistant minister of interior for technology affairs, said the savings reflect broader efficiency gains from digitization. 

This comes as government services previously delivered through manual, paper-driven processes have moved onto a unified digital platform used by millions of citizens and residents. 

“Absher is one of the oldest platforms that has had a direct impact on strengthening the efficiency of spending and in opening new avenues for providing added value services,” said Mashari. 

He said the platform’s economic impact is closely linked to the government’s digital transformation agenda, which aims to reduce operational costs while improving service delivery across public agencies. 

The assistant minister further stated that the economic impact was at SR17 billion and grew to SR20 billion according to the ministry’s latest data. 

He added that Absher has completed a shift in its financial structure, transitioning from direct state capital funding to a sustainable financing model based on self-generated income. 

Mashari also said the Ministry of Interior is moving to expand its digital capabilities beyond service delivery, with a focus on security and financial protection. 

Authorities are working toward building a secure digital ecosystem designed to combat financial fraud and crime, he said, as digital transactions and online government services continue to expand. 

Absher is the flagship digital services platform of Saudi Arabia’s Ministry of Interior and one of the Kingdom’s earliest large-scale e-government initiatives. 

Launched in 2010, the platform provides citizens, residents, visitors, and businesses with access to hundreds of government services through a unified digital portal and mobile application. 

Its services span civil affairs, passports, residency and visa services, as well as traffic and vehicle transactions, and business administration, significantly reducing the need for in-person government visits. 

Absher is widely used across the Kingdom, handling millions of electronic transactions each month and serving as a core pillar of Saudi Arabia’s broader digital transformation and Vision 2030 agenda.