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Agreement Between the Saudi Red Sea Authority and the Insurance Authority Results in the Launch of the First National Insurance Product for Coastal Tourism Activities in the Kingdom

30 October 2024

The Saudi Red Sea Authority and the Insurance Authority have signed a cooperation agreement resulted in the launch of the first national insurance product for all coastal tourism activities.

This product will be offered through local insurance companies, without the need for external parties to provide services for these activities. The aim is to enhance the appeal of coastal tourism, attract practitioners for maritime and coastal tourism activities, and strengthen the tourism content to achieve the Saudi Vision 2030 Objectives.

The Saudi Red Sea Authority was represented at the signing by CEO Mohammed Al-Nasser, while the Insurance Authority was represented by CEO Naji Al-Faisal Al-Tamimi. This agreement marks the first time a national product has been introduced in the Kingdom, aligned with the authority's mission to promote and market coastal and maritime tourism activities, providing a complete tourism experience, developing a model tourism infrastructure, and creating an attractive investment environment for the tourism sector. The Insurance Authority aims to boost the industry's growth through collaboration and integration with other government entities, contributing to the promotion of these activities in designated regions.

This includes offering diverse and innovative insurance products that contribute to the protection and development of investments. The Red Sea Authority, in partnership with the Insurance Authority, held a series of meetings with insurance companies, resulting in the launch of the first innovative national product in the Kingdom.

This product supports coastal tourism activities by enhancing their attractiveness. The insurance product covers a range of activities, including yachting, water skiing, diving, visitor rides, and surfing, meeting the needs of those practicing marine and coastal tourism activities. Encouraging investment, including small and medium-sized projects, and promoting maritime and marine tourism activities to provide added value to the national economy.

The Insurance Authority is a government entity established by Cabinet Resolution No. 85 on August 15, 2022, tasked with regulating, stabilizing, and developing the insurance sector in the Kingdom. It is responsible for supervising and overseeing the sector and enjoys legal personality, financial and administrative independence, and is organizationally linked to the Prime Minister.

The authority is committed to raising insurance awareness, protecting the rights of policyholders and beneficiaries, contributing to financial stability, and fostering the principles of contractual insurance relationships It is noted that the authority began its journey in 2021 to establish and regulate coastal tourism in the Red Sea, enhancing integration between relevant entities.

This includes issuing licenses, establishing policies and strategies, and developing the necessary plans. Additionally, it aims to strengthen infrastructure requirements, protect the marine environment, encourage investment, and promote small and medium-sized projects for marine and maritime tourism activities

Last Modified Date: 30/10/2024 - 12:00 AM Saudi Arabia Time