In 2002, owing to the high rate of car accidents, Saudi Arabia made third-party liability motor vehicle insurance for in-country transit of foreign vehicles along with drivers' license insurance (Rukhsa) compulsory for Saudi nationals and expatriates within the country. The compulsory insurance initiative coupled with a growth in the number of cars registered in the KSA has translated into a huge business opportunity for insurers. With the expected boom in the economy, it is thought that the car market will continue to grow.

In the beginning of 2007, third party liability motor vehicle insurance was made compulsory for all registered vehicles within the Kingdom, a development that is expected to further help the motor insurance market in the KSA to grow significantly during the next four years