ECONOMY

How much will Saudi Arabia save after the expected departure of 800,000 foreign drivers?

The overall cost of foreign drivers paid by Saudi households in 2016 exceeded 14 billion Saudi riyals ($ 3.73 billion). (Reuters)

The decision to allow women to drive in Saudi Arabia is expected to reduce the number of foreign drivers since many women will become independent and rely on driving themselves.

Other aspects that can encourage women in Saudi Arabia to consider and adopt driving are the high costs of private drivers.
Last year alone, the number of foreign drivers in the Kingdom of Saudi Arabia ranged between 800,000 and 1 million drivers.

The costs of recruiting a driver in Saudi Arabia, which includes housing fees as well, usually amounts to about 15 thousand riyals annually on top of a salary of no less than 2,000 riyals per month.

In other words, Saudi families are expected to pay up to $1,000 per month for the services of a private driver.

In fact, according to numerous media reports, the overall cost of foreign drivers paid by Saudi households in 2016 exceeded 14 billion Saudi riyals ($ 3.73 billion). These costs generally include accommodation fees, recruitment costs, plane tickets, visa, driver's license, insurance, food, salary and medical treatment.

By allowing women to drive, it is presumed that the demand for cars will necessarily increase in Saudi Arabia.

Last year, it was recorded that about 676,000 cars were sold in Saudi Arabia, with Toyota accounting for 32 percent of overall sales.

On the other hand, Hyundai came second and accounted for 24 percent of car sales.

It is also highly likely for the Saudi car market to witness an increase in the sales of small and compact cars, as they will offer families greater accommodation and mobility.

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Last Update: Wednesday, 27 September 2017 KSA 17:36 - GMT 14:36
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