Dubai-based Orient Insurance has postponed plans to expand into Saudi Arabia for two years.
In a filing to the Dubai Financial Market, the company, which is owned by Al-Futtaim Group, said the decision to put expansion plans on hold was a result of the current coronavirus crisis.
Orient Insurance was expected to open up across the kingdom this year.
The posting said, “Due to the ongoing development resulting out of the spread of the pandemic Covid-19 and the subsequent restrictions on movement and traveling resulting in disruption in economy and trade during the past period, the company has decided to postpone the start of the business that was expected during the current year, to the middle of the year 2022.”
It added that the delay would allow for the country to recover from the economic onslaught of Covid-19 and allow for “a more powerful entry in the market”.
The two-year delay has been approved by the Saudi Arabia Monetary Agency (SAMA).
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