On October 30, 2024, in Riyadh, the Saudi Red Sea Authority (SRSA) and the Insurance Authority announced a significant cooperation agreement aimed at launching insurance products specifically designed to cover risks associated with various coastal tourism activities. This initiative, as detailed in a press release from the SRSA, seeks to enhance the appeal of coastal tourism in Saudi Arabia and attract participants to navigational and marine tourism activities while bolstering local content in line with Saudi Vision 2030.
The agreement was formally signed by Mohammed Al Nasser, CEO of the SRSA, and Eng. Naji Al-Faisal Al-Tamimi, CEO of the Insurance Authority. The release emphasized that the introduction of these insurance products aligns with the SRSA's mandate to promote navigational and marine tourism, thereby providing a comprehensive tourism experience and establishing a model infrastructure that can attract substantial investment in the sector.
To effectively develop these insurance products, the SRSA and the Insurance Authority conducted a series of meetings with various insurance companies, focusing on enhancing the attractiveness of navigational and marine tourism activities. These activities include sailing, kayaking, water skiing, diving, boating, and surfing, ensuring that the offerings are tailored to meet the specific needs of practitioners and participants in these vibrant sectors.
The SRSA has been actively working to build and regulate the coastal tourism sector since 2021. Its objectives include promoting integration among relevant entities through the issuance of licenses and permits, developing comprehensive policies and strategies, determining infrastructure requirements, preserving the marine environment, supporting small and medium-sized enterprises (SMEs), and advancing navigational and marine tourism activities, all aimed at adding value to the national economy.
Meanwhile, the Insurance Authority, established by Cabinet Resolution No. 85 on August 15, 2023, is dedicated to organizing, stabilizing, and developing Saudi Arabia's insurance sector. With a legal personality and financial and administrative independence, the Authority is committed to enhancing insurance awareness, safeguarding the rights of insured parties and beneficiaries, contributing to financial stability, and reinforcing the principles underlying insurance contractual relationships.
This collaboration marks a pivotal step in fortifying the tourism sector and the insurance industry in Saudi Arabia, contributing to the broader goals of Vision 2030.