because of its fastest economy growth, Mega Projects, and broad vision to cater
the world in balanced economic environment. In line with Vision 2030 of Saudi
Arabia, Saudi market is fostering a favorable environment in KSA for all
industries growth, especially for its ambitious agenda of development of mega
cities like NEOM and other projects for big cities to recognize as Top Ten
cities in the world.
We can’t ignore inflation and its impact on the
economy in the context of financial well-being, even in growing market, we need
to take appropriate actions to prevent from its impact. Inflation is the
sustained increase in the general price level of goods and services in an
economy over a period. In simpler terms, it means that, on average, things
become more expensive, and each unit of currency (e.g., Dirham, Saudi Riyal,
dollar, pounds, and euro) buys less than it used to.
Inflation can be caused by various factors, including:
- Demand-Pull Inflation: When demand for goods and services exceeds their supply, prices tend to
rise. -
Cost-Push Inflation: When the cost of
production, such as wages or raw materials, increases, businesses may raise
prices to maintain profit margins. -
Monetary Policy: Central banks
can influence inflation through their control of interest rates and the money
supply.
Financial well-being refers to a state in which an
individual or household enjoys a sense of financial security and stability. It
is characterized by having enough financial resources to meet current needs,
plan, and navigate unexpected financial challenges without significant stress
or hardship.
Financial security is a key component of financial
well-being. It involves having a financial safety net that can cover essential
expenses and protect against financial emergencies. Financial security provides
peace of mind and reduces anxiety related to money matters. Without financial
security, individuals and families may struggle to meet their basic needs and
long-term goals.
Challenges in an Inflationary Market
- Erosion of purchasing power.
-
Impacts on Savings and Investments.
-
Rising Cost of Living.
-
Uncertainty and volatility make it difficult for business to plan and
invest. -
Reduced Economics growth, business and consumers become more cautious
about spending.
Insurance definition and recommendation in the context of financial
well-being
Insurance can play a vital role in helping people to achieve financial
well-being. It can provide financial protection in unexpected events, such as
car accidents, medical emergencies, or property damage. Insurance is a
financial product or arrangement that provides protection against financial
losses or risks. Individuals and organizations pay premiums to insurance
companies in exchange for coverage in case of specific events or losses.
Moreover, inflation-indexed policies or investment-linked insurance can help
policyholders maintain their financial well-being in an inflationary market.
Associated Alliance role in Middle East and Kingdom of Saudi Arabia
Associated Alliance served around the globe with the help of
international partners to bring diversified insurance solutions and consultancy
to Middle East and Kingdom of Saudi Arabia. We as insurance expert cover Middle
East and KSA market with broad vision of consultancy on all mega projects
especially General lines, Medical, Motor, power, transportation, aviation,
seaport management insurance and many other lines. Our expert team
specially in Arabian Peninsula is ready to serve any query.