Saudi Arabia Launches First Coastal Tourism Insurance Product

Saudi Arabia’s first coastal tourism insurance product has been launched through a cooperation agreement between the Saudi Red Sea Authority (SRSA) and the Insurance Authority, marking a new phase in the Kingdom’s efforts to bolster marine tourism under Vision 2030. The agreement, signed on October 30, 2024, in Riyadh, aims to introduce insurance coverage tailored to risks associated with all coastal tourism activities, including sailing, kayaking, water skiing, diving, boating, and surfing, offered through local insurance companies.

Context and Background

This initiative represents a strategic move to enhance the appeal and safety of Saudi Arabia’s coastal tourism sector, attracting more participants to navigational and marine activities. The agreement was signed by SRSA CEO Mohammed Al Nasser and Insurance Authority CEO Eng. Naji Al-Faisal Al-Tamimi. Since 2021, SRSA has been working to build and regulate the coastal tourism ecosystem, focusing on issuing licenses, developing policies, and preserving the marine environment to support small and medium-sized enterprises and add value to the national economy.

Key Details

The Insurance Authority, established by Cabinet Resolution No. 85 on August 15, 2023, oversees the regulation and development of Saudi Arabia’s insurance sector. Its responsibilities include increasing insurance awareness, protecting policyholder rights, and contributing to financial stability. In partnership with SRSA, a series of meetings were held with insurance companies to design these new products, specifically targeting activities such as sailing, kayaking, water skiing, diving, boating, and surfing. The goal is to provide a comprehensive and secure tourism experience that meets the needs of practitioners while stimulating investment in the sector.

Implications and Impact

This development is expected to strengthen local content, enhance investor confidence, and support the growth of marine tourism along Saudi Arabia’s extensive Red Sea coastline. By offering specialized insurance coverage, the Kingdom aims to align with global best practices in tourism risk management, making coastal tourism more attractive to both domestic and international visitors. The collaboration between SRSA and the Insurance Authority also underscores the integration among governmental entities to foster a resilient tourism economy.

Vision 2030 Alignment

The launch of these insurance products directly supports Saudi Arabia’s Vision 2030 by diversifying the economy, promoting tourism as a key sector, and enabling sustainable coastal development. This initiative contributes to building a world-class tourism infrastructure that attracts investment, preserves natural resources, and empowers local businesses, ultimately reinforcing the Kingdom’s position as a leading global destination for marine and navigational tourism. Through such strategic collaborations, Saudi Arabia continues to realize its ambitious goals for a prosperous and diversified future.

20 Questions

Q1. What is the main goal of the agreement between SRSA and the Insurance Authority?

A1. The primary goal is to launch insurance products covering risks for all coastal tourism activities, aiming to boost the appeal of marine tourism and support local insurance companies in line with Vision 2030.

Q2. When and where was the agreement signed?

A2. The agreement was signed on October 30, 2024, in Riyadh, Saudi Arabia, by SRSA CEO Mohammed Al Nasser and Insurance Authority CEO Eng. Naji Al-Faisal Al-Tamimi.

Q3. Which coastal tourism activities are covered by the new insurance products?

A3. The products cover activities such as sailing, kayaking, water skiing, diving, boating, and surfing, providing comprehensive risk protection for participants.

Q4. How does this initiative support Saudi Vision 2030?

A4. By enhancing coastal tourism appeal, attracting investment, and strengthening local content, it directly contributes to economic diversification and tourism expansion under Vision 2030.

Q5. What is the role of the Insurance Authority in this partnership?

A5. The Insurance Authority coordinates with SRSA and local insurance companies to develop innovative products that stimulate and protect investments in the tourism sector.

Q6. When was the Insurance Authority established?

A6. The Insurance Authority was established by Cabinet Resolution No. 85 on August 15, 2023, to organize and develop Saudi Arabia’s insurance sector.

Q7. Who is the CEO of SRSA?

A7. The CEO of the Saudi Red Sea Authority is Mohammed Al Nasser, who signed the agreement on behalf of SRSA.

Q8. Who is the CEO of the Insurance Authority?

A8. The CEO of the Insurance Authority is Eng. Naji Al-Faisal Al-Tamimi, who co-signed the cooperation agreement.

Q9. What is the significance of SRSA’s role in coastal tourism since 2021?

A9. Since 2021, SRSA has worked to regulate and promote the coastal tourism sector by issuing licenses, developing policies, and preserving the marine environment.

Q10. How does the new insurance product benefit local insurance companies?

A10. It enables local insurers to offer specialized coverage for marine activities, expanding their product portfolios and fostering industry growth.

Q11. Will the insurance cover international tourists?

A11. While the announcement focuses on tourism activities in Saudi Arabia, the products are designed to serve all practitioners, likely including international visitors, enhancing their safety and experience.

Q12. What types of risks are covered under these insurance products?

A12. The products cover risks specifically associated with navigational and marine tourism activities, such as accidents, equipment damage, and liability during sailing, diving, and similar pursuits.

Q13. How does this initiative enhance investor confidence?

A13. Providing insurance coverage reduces perceived risks for investors and operators in the marine tourism sector, encouraging more investment in infrastructure and services.

Q14. What is the total length of Saudi Arabia’s Red Sea coastline?

A14. Saudi Arabia’s Red Sea coastline spans approximately 1,800 kilometers, offering extensive opportunities for marine tourism development.

Q15. How does the agreement strengthen local content?

A15. By relying on local insurance companies to provide coverage, the initiative supports the domestic financial services sector and promotes self-sufficiency.

Q16. What other government entities are involved in coastal tourism regulation?

A16. SRSA works in coordination with various entities, including the Ministry of Tourism and the Ministry of Investment, to ensure integrated development of the sector.

Q17. How does the insurance product protect the insured’s rights?

A17. The Insurance Authority is committed to safeguarding the rights of the insured and beneficiaries, including timely claim processing and fair treatment under clear policies.

Q18. What is the expected impact on small and medium-sized enterprises (SMEs)?

A18. The initiative enables SMEs in marine tourism to operate with reduced liability concerns, encouraging entrepreneurship and job creation in the sector.

Q19. How does this product align with global best practices?

A19. Launching specialized insurance for coastal activities follows international standards for risk management in tourism, positioning Saudi Arabia competitively in the global market.

Q20. What future developments are expected from this partnership?

A20. The partnership may lead to additional innovative insurance products for other tourism segments, further strengthening the sector’s resilience and attractiveness.

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