Saudi Arabia keen to get more women in the workforce

Saudi Arabia keen to get more women in the workforce
Saudi Arabia is keen to get more women in the workforce, and the Kingdom has already surpassed its Vision 2030 ambition of achieving 30 percent female participation in the labor market. (SPA)
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Updated 06 July 2024
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Saudi Arabia keen to get more women in the workforce

Saudi Arabia keen to get more women in the workforce
  • Saudi women in tourism and hospitality sectors underline power of workforce diversity, experts explain

RIYADH: Tourism and hospitality in Saudi Arabia are experiencing a remarkable transformation driven by the increased participation of women, thanks to inspirational leaders and strong government action.

This shift is significant considering that tourism is one of the few global industries where women already constitute the majority of the workforce.

Saudi Arabia is keen to get more women in the workforce, and the Kingdom has already surpassed its Vision 2030 ambition of achieving 30 percent female participation in the labor market.

Indeed, the goal has now been upscaled to 40 percent — double the rate seen in 2010, according to World Bank figures.

Tourism and hospitality is seen as a sector where women can thrive, and the Kingdom is working hard to create more opportunities in this area.

According to EHL Insights, just five years ago, Saudi females faced significant barriers when it came to working in hospitality companies, and women had to go to great lengths to convince their families to allow them to pursue education or employment opportunities in this industry.

This has changed thanks to the economic and cultural shifts spearheaded by the Vision 2030 initiative, and according to data issued by R Consultancy Group in March, 45 percent of the sector’s workforce now comprises female professionals – 925,000 workers.

“There are several inspirational female leaders that have helped to strategically shape both the Saudi tourism sector and the regional tourism sector more broadly such as Princess Haifa bint Mohammed Al-Saud, vice minister of tourism, and Basmah Al-Mayman, regional director of the UN World Tourism Organization,” Anne-Laure Malauzat, partner at Bain & Co. in the Middle East, told Arab News.

She  went on to stress that on the ground in Saudi Arabia, there is a massive presence of women across different parts of the tourism and hospitality sectors, from the architects designing the Kingdom’s key airports, passport control officers, and cab drivers as well as hospitality leaders and tourist guides.

“Examples of these success stories include Sarah Gasim, senior vice president — head of KSA Hotels and Hospitality at JLL — who managed hotel complexes in the past. (She) is a published author and lectured on hospitality, helping to shape future generations in the sector,” Malauzat said.

From Red Sea Global’s point of view, spokesperson Zainab Hamidaddin Al-Hanoof Al-Hazzani told Arab News that women bring unique perspectives, skills, and insights to roles such as hospitality management, customer service, marketing, and event planning, which significantly enhance the overall quality of service and customer satisfaction. 




Tourism and hospitality is seen as a sector where women can thrive, and the Kingdom is working hard to create more opportunities in this area. (SPA)

“Their diverse perspectives, enhanced service delivery, and inclusive workplace contributions are driving innovation and economic growth, making them indispensable to its success,” she said.

Al-Hazzani claimed that women are actively shaping the future of the tourism and hospitality industry in Saudi Arabia, adding: “This is particularly true at RSG where women play a pivotal role in elevating guest experiences, fostering cultural diversity, and contributing to the overarching success of our projects.

For example, our Elite Graduate Program has provided employment opportunities for 250 individuals, with 30 women advancing to management positions.” 

Opportunities and challenges for women in the tourism and hospitality sector 

The tourism and hospitality sector in Saudi Arabia is undergoing a significant transformation, with a growing focus on cultural tourism, luxury experiences, and heritage preservation which presents a wealth of opportunities for women.

Laila Kuznezov, director, Implementation Practice at management consulting firm Oliver Wyman told Arab News that from leadership roles in hotel management to careers in event planning, cultural tourism experiences, and hospitality education, women can leverage their “unique skills and perspectives” to shape the future of Saudi tourism. 

“By empowering women in tourism and hospitality, they are not only creating a more inclusive workforce, but also sending a powerful message to the world. With a diverse pool of talent contributing to the industry, they can create a world-class visitor experience that reflects the Kingdom’s rich heritage, culture tapestry, and forward-thinking vision for the future,” Kuznezov added.

Speaking on the key constraints women face in entering the labor force and securing employment, Kuznezov shed light on how many of the barriers in Saudi Arabia are similar to those faced globally. 

By empowering women in tourism and hospitality, they are not only creating a more inclusive workforce, but also sending a powerful message to the world.

Laila Kuznezov, director, Implementation Practice at Oliver Wyman

“A gender wage gap persists, and women at certain education levels, particularly those with only a secondary school leaver’s certificate, have much lower participation rates than men. A huge opportunity lies in capitalizing on the highly skilled female workforce in Saudi Arabia,” she explained.

The director also noted that: “We need to see more women as CEOs, CFOs, and senior managers across all industries, particularly in highly productive sectors driven by technology and knowledge. Encouraging female entrepreneurship is also crucial. The talent and ambition are there – it’s about providing continued support and fostering a culture that actively supports and promotes women in transformative roles.”

She continued to clarify that the recent rise in female labor force participation is a positive indicator, but the next step is ensuring these women secure high-quality jobs that leverage their full capabilities.

“It is also important to support gains for women at all levels and geographic areas. A key focus in Saudi Arabia is ensuring access to the training and childcare options needed for success, especially for women who have been out of the workforce for long periods of time, are first-time job holders, or have lower education levels,” Kuznezov emphasized.

“Since Saudi women tend to stay closer to their hometowns, geographically dispersed training programs and readily available childcare are crucial to expanding regional employment opportunities,” the director further said.

According to Kuznezov, Saudi Arabia is embracing a progressive approach by developing and enabling regulations to promote new forms of work, such as freelancing, part-time work, platform and gig economy work, and remote working.

“These models offer women increased flexibility and more channels to enter and participate in the workforce, which should contribute to continuing the positive trends of increased participation and reduced unemployment for women,” she said.

Women participation’s impact on Vision 2030

Female participation in the tourism and hospitality sector has helped support the Vision 2030 agenda on multiple fronts, believes Bain & Co.’s Malauzat. 

“From a talent perspective, enabling the sector transformation through their leadership, skills, and contribution across all parts of the tourism and hospitality lifecycle,” she said. 

FASTFACT

In Saudi Arabia, there is a massive presence of women across different parts of the tourism and hospitality sectors, from the architects designing the Kingdom’s key airports, passport control officers, and cab drivers as well as hospitality leaders and tourist guides.

“From a consumer understanding perspective, women globally take an estimated 80 percent of consumer-related decisions so having women represented in the sector is critical to ensure a real understanding of consumers in this space,” the partner affirmed.

She concluded: “From a gender equity perspective, this has been an important contributing factor to helping the Kingdom achieve its overall aspirations for female participation in the labor market nationally.”

From RSG’s lens, according to Al-Hazzani, by actively promoting gender diversity in the workforce within the tourism and hospitality sector, the firm is taking significant strides towards realizing the vision outlined in Vision 2030.

“This initiative aligns seamlessly with the broader objective of cultivating a vibrant and inclusive economy that harnesses the full spectrum of talent and capabilities within the nation,” Al-Hazzani said.

“Recognized as a fundamental driver of economic diversification, the tourism and hospitality sector in particular benefits immensely from the integration of female talent. Their presence not only fuels the sector’s growth but also enhances its competitive edge and long-term viability through delivering an enriched tourism experience and driving innovation,” she added.

The spokesperson justified that by prioritizing gender diversity in the tourism and hospitality workforce, RSG is not only embracing Vision 2030’s ideals but also paving the way for other sectors to do the same.

“Our dedication to inclusivity not only strengthens our economy but also reaffirms our collective commitment of creating a more prosperous and equitable society,” Al-Hazzani concluded.


Saudi Arabia and GCC drive global sukuk market amid economic diversification push: Moody’s

Saudi Arabia and GCC drive global sukuk market amid economic diversification push: Moody’s
Updated 15 sec ago
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Saudi Arabia and GCC drive global sukuk market amid economic diversification push: Moody’s

Saudi Arabia and GCC drive global sukuk market amid economic diversification push: Moody’s

RIYADH: The global sukuk market is poised for a strong performance in 2024, with issuance volumes expected to surpass those of 2023 despite a slowdown in the year’s second half. 

According to a report by the global credit rating agency Moody’s, the issuance of Shariah-compliant bonds could reach between $200 billion and $210 billion this year, up from just under $200 billion in 2023. 

This growth is being fueled by robust sovereign issuance across the Gulf Cooperation Council and Southeast Asia, with Saudi Arabia playing a leading role.

Economic diversification efforts and the issuance boom 

The GCC region remains strong in the global sukuk market, accounting for a substantial share of the total issuance in 2024. 

In the first half of 2024, GCC sukuk issuance grew 138 percent year on year, reaching $69.2 billion. 

Saudi Arabia led this surge, comprising 37 percent of the total issuance. 

The Kingdom’s efforts to diversify its economy have bolstered investor confidence, making it a key market for the financial instrument. 

In the first half of 2024, the nation issued $17 billion in sukuk, primarily to refinance debt maturing later this year, as well as in 2025, and 2026. 

This pre-financing strategy is expected to continue throughout 2024 as Saudi Arabia accelerates key strategic projects tied to Vision 2030. It also reflects efforts toward economic diversification, a cornerstone of the blueprint that aims to reduce the Kingdom’s dependency on oil revenues.

Abdulla Al-Hammadi, the assistant vice president and an analyst at Moody’s, emphasized Saudi Arabia’s key position in the market, saying: “We expect full-year 2024 sukuk issuance volumes to exceed 2023, supported by strong sovereign issuance across the Gulf Cooperation Council and Southeast Asia, and from Saudi Arabia (A1 positive) and Malaysia (A3 stable) in particular.”

The Kingdom’s borrowing activities align with broader efforts to deepen its capital markets. The government has expanded its borrowing program to build its general reserves and finance major investments. 

This proactive fiscal policy is not just about addressing short-term financing needs; it is designed to maintain a robust presence in global debt markets and ensure steady progress on 2030’s ambitious goals.

Other GCC countries, including the UAE and Qatar, have also experienced significant growth in sukuk issuance. 

The UAE saw its volumes double to $8.6 billion in the first half of 2024, while Qatar witnessed a 258 percent year-on-year increase, reaching $4.57 billion. 

Both nations are implementing economic diversification strategies similar to those of Saudi Arabia, further cementing the region’s dominance in the sukuk market.

Southeast Asia, particularly Malaysia and Indonesia, is a vital region for these bonds. 

Malaysia, with its comprehensive Islamic finance ecosystem, accounted for nearly 30 percent of the total issuance in the first half of the year. 

Indonesian issuance is expected to rise in the latter half of 2024 as the government looks to fund its budget deficit and refinance existing sukuk.

Sustainable sukuk and ESG initiatives

A notable trend in 2024 has been the growing prominence of green and sustainable sukuk. 

These instruments, which align with environmental, social, and governance principles, are increasingly attractive to global investors. 

Saudi Arabia, in particular, has been a driving force behind this trend, issuing significant volumes of ESG-linked sukuk. 

In the first half of the year, issuances in this area reached $6 billion, with Saudi Arabia, the UAE, and Indonesia leading the charge. 

As the global focus on sustainability grows, the Kingdom has taken steps to promote investments in green projects, which is in line with its commitment to environmental stewardship.

Notable issuances include Al Rajhi Bank’s first dollar-denominated sustainable sukuk, valued at $1 billion, and Alinma Bank’s $1 billion additional tier one capital sukuk. 

These reflect Saudi Arabia’s intention to maintain leadership in sustainable finance while encouraging private sector participation in ESG initiatives.

Outlook for 2024 and beyond

Moody’s report highlights that while sukuk issuance is expected to slow in the second half of 2024, the long-term growth prospects for the market remain robust. 

Sovereign issuances from the GCC and Southeast Asia will remain strong, driven by continued efforts to diversify economies away from oil. By the end of the year, sovereign issuances by countries in the bloc, led by Saudi Arabia, could total $100 billion.

The increasing demand for sukuk is not limited to traditional Islamic markets, with investors worldwide are highly interested in these finance products, particularly green and sustainable offerings. 

Al-Hammadi highlighted: “The pool of investors will continue to grow, thanks to the growing popularity of Islamic products beyond core Islamic markets, rising demand for green and sustainable sukuk, and the increasing sophistication and diversity of Islamic instruments.”

Saudi Arabia is well-positioned to benefit from this trend, with its deepening capital markets, a growing reputation as a leader in sustainable finance, and robust economic reform agenda.


Egypt’s trade deficit narrows by 5.1% in June

Egypt’s trade deficit narrows by 5.1% in June
Updated 41 min 38 sec ago
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Egypt’s trade deficit narrows by 5.1% in June

Egypt’s trade deficit narrows by 5.1% in June

RIYADH: Egypt’s trade deficit decreased by 5.1 percent in June, reaching $2.87 billion, due to falling prices for wheat and other commodities.

Data from the Central Agency for Public Mobilization and Statistics shows that imports fell by 3.3 percent to $6 billion during the month.

The decline in imports was primarily driven by reduced prices for key commodities: wheat prices dropped by 21.5 percent, medicines and pharmaceutical preparations by 11.9 percent, plastics by 4.2 percent, and corn by 28.6 percent. This follows a 10.3 percent decrease in trade deficit recorded in May, which was also attributed to lower import values.

Since 2004, Egypt has consistently run trade deficits, as import growth has outpaced export growth, largely due to increasing imports of petroleum and wheat, according to Trading Economics.

CAPMAS data also revealed some increases in imports in June compared to the same month in 2023, including a 49.8 percent rise in petroleum products, a 33.6 percent increase in raw materials of iron and steel, a 5.8 percent rise in organic and inorganic chemicals, and a 39.6 percent increase in natural gas.

Export values, however, fell by 1.6 percent year on year to $3.13 billion. This decrease was due to lower prices for commodities such as fertilizers (down 42.9 percent), crude oil (down 64.6 percent), iron rods, bars, angles, and wires (down 23.7 percent), and fresh onions (down 25.4 percent). Conversely, exports of petroleum products increased by 56.3 percent, ready-made clothes by 5.5 percent, fresh fruits by 24.3 percent, and pasta and various food preparations by 12.4 percent.

Egypt aims to revitalize its economy by enhancing exports across diverse global markets. This involves close collaboration between government bodies, the business community, and exporters to improve product quality and competitiveness. The country is targeting $100 billion in annual merchandise exports over the next three years to address its trade deficit.

The International Monetary Fund noted in August that Egypt’s economy is showing signs of recovery, with recent government measures to restore macroeconomic stability starting to yield positive outcomes. Although inflation remains high, it is decreasing.

The IMF’s review highlighted Egypt’s economic reforms, including the unification of official and parallel exchange rates in March, as key to maintaining fiscal stability.


Saudi Arabia’s non-oil exports to Qatar surge 213%: GASTAT 

Saudi Arabia’s non-oil exports to Qatar surge 213%: GASTAT 
Updated 49 min 23 sec ago
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Saudi Arabia’s non-oil exports to Qatar surge 213%: GASTAT 

Saudi Arabia’s non-oil exports to Qatar surge 213%: GASTAT 

RIYADH: Saudi Arabia’s non-oil exports to Qatar surged 213 percent in the second quarter of 2024 compared to the previous three months, reaching SR5.79 billion ($1.54 billion), official data showed. 

According to the latest report by the General Authority for Statistics, the surge was driven primarily by shipments of transport equipment and parts, totaling SR4.59 billion.

The Kingdom also exported mechanical appliances and electrical products valued at SR154.4 million to Qatar during the same period, followed by shipments of live animals and related products at SR153.9 million.

This increase underscores Saudi Arabia’s broader economic diversification strategy, which seeks to mitigate the Kingdom’s historical dependence on oil revenues. 

Overall, Saudi non-oil exports grew 4.3 percent in the second quarter from the previous three-month period. The Kingdom also exported prepared food products and beverages worth SR103.8 million to Bahrain, and chemical and allied products valued at SR116.8 million. 

Saudi Arabia’s total outbound shipments to Arab countries reached SR12.15 billion in the second quarter, up 42.94 percent from the previous quarter. 

In terms of imports, Saudi Arabia received SR2.45 billion worth of goods during the same period. 

The UAE remained the top destination for Saudi non-oil exports, receiving SR15.07 billion in the second quarter. Non-oil shipments to China and India were SR7.08 billion and SR5.48 billion, respectively. 

Other notable exports included SR3.13 billion to Singapore, SR2.93 billion to Turkiye, and SR2.40 billion to Belgium. 

Earlier in September another report released by GASTAT noted that non-oil activities in Saudi Arabia witnessed a 4.9 percent year-on-year increase in the second quarter of 2024, driven by expansion of the finance and insurance sectors. 

Compared to the first quarter, non-oil activities rose 2.1 percent. The Kingdom’s seasonally adjusted gross domestic product increased by 1.4 percent quarter on quarter but saw a slight annual decline of 0.3 percent. 

The sharp rise in non-oil exports to Qatar highlights the ongoing success of Saudi Arabia’s economic diversification efforts. 

By boosting trade ties with key regional partners and expanding its non-oil export base, the Kingdom is reinforcing its strategy to build a more resilient and diversified economy, aligning with its Vision 2030 goals. 


Mining firm AMAK to focus on gold production and operational expansion in 2025

Mining firm AMAK to focus on gold production and operational expansion in 2025
Updated 09 September 2024
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Mining firm AMAK to focus on gold production and operational expansion in 2025

Mining firm AMAK to focus on gold production and operational expansion in 2025

RIYADH: Saudi firm Al-Masane Al-Kobra Mining Co. will focus on gold deposit production and operational expansion as part of a growth plan to strengthen its industry position through 2025.

This effort is to ensure ongoing operational excellence and boost production capacity, thereby creating value for all stakeholders and benefiting the local community, the company said on Tadawul.

A central component of the strategy is the development of the Khutainah project. This undertaking is set to play a pivotal role in advancing gold deposit production and will involve expanding operations at nearby sites, including Sukari 1, Sukari 2, and Al Aqiq.

By focusing on these key areas, the mining company, also known as AMAK, aims to significantly enhance its production capabilities and reinforce its position in the industry.

Saudi Arabia is strategically positioning itself to become a major player in the mining sector, with its mineral wealth estimated to be worth SR9.4 trillion ($2.4 trillion).

The emphasis on economic diversification – known as Vision 2023 – has elevated the industry as a central component of national development plans. 

Mining is pivotal in the Kingdom’s efforts to steer away from oil dependency, focusing on tapping into substantial reserves of phosphate, gold, copper, and bauxite.

Additional primary aspects of the strategy include improving operational efficiency and infrastructure, initiating underground mining at the Guyan Gold Mine, and starting iron oxide production at the Nuham site within three months of the license issuance, which is currently in its final stages.

AMAK will establish a new drilling and exploration company to support its future growth and build new facilities to increase the storage capacity for dry tailings using safe, sustainable, and environmentally friendly methods.

The firm will also strengthen its portfolio by acquiring additional exploration permits for promising base and precious metal sites and expand activities to include the exploration and mining of industrial minerals.

As part of its sustainability efforts, AMAK has begun linking its facilities to the national electricity grid to cut carbon emissions and boost operational efficiency.

Located in the Najran region of Saudi Arabia, the private mining firm received a gold exploration permit from the Ministry of Industry and Mineral Resources to carry out activities in an area spread over 78.07 sq. km.

AMAK also received two additional licenses to carry out exploration of zinc and copper in an area spanning over 138.64 sq. km in Najran. These permits will be valid until April 25, 2028. 

The company said it is all set to carry out the relevant studies within the regulatory period to ensure the availability of the raw materials. 

Since its inception in 2008, AMAK has highlighted adopting a long-term advanced business strategy based on the research and sustainable growth of its technical and operational infrastructure to support its various activities. 


UAE GDP grows 3.4% in Q1, driven by non-oil sector

UAE GDP grows 3.4% in Q1, driven by non-oil sector
Updated 09 September 2024
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UAE GDP grows 3.4% in Q1, driven by non-oil sector

UAE GDP grows 3.4% in Q1, driven by non-oil sector

RIYADH: The UAE’s gross domestic product reached 430 billion dirhams ($117 billion) in the first quarter of 2024, marking a 3.4 percent year-on-year growth.

Economy Minister Abdulla Al-Marri highlighted that the preliminary estimates from the Federal Competitiveness and Statistics Center emphasize the vitality of the UAE economy and its ability to sustain growth, as reported by Emirates News Agency, also known as WAM.

The non-oil sector played a significant role in this expansion, with a 4 percent increase contributing substantially to the overall economic performance.

Al-Marri attributed this success to the UAE’s adoption of an innovative economic model, guided by the nation’s leadership. “The UAE has embraced an innovative economic model that aligns with its future vision, supported by effective national strategies, global openness, and a focus on flexibility and innovation,” Al-Marri stated, according to WAM.

These results align with the UAE’s long-term vision, We the UAE 2031, which aims to elevate the national GDP to 3 trillion dirhams within the next decade. This commitment to sustainable growth is reflected in the performance of key sectors such as finance, transportation, construction, and tourism.

Hanan Ahli, managing director of the Federal Competitiveness and Statistics Center, noted the substantial contributions of these sectors. “The financial and economic data from Q1 2024 demonstrate the resilience of the UAE’s vital economic sectors,” Ahli said. She added that the UAE’s strong global economic competitiveness is supported by a stable financial system, robust economic fundamentals, and effective policy frameworks.

In the first quarter of 2024, financial and insurance activities emerged as the leading non-oil sector, growing by 7.9 percent, fueled by a 6 percent rise in local credit extended to the private sector. The transportation and storage sector also showed impressive growth, with a 7.3 percent increase, supported by a 14.7 percent rise in passenger traffic through UAE airports, which saw 36.5 million travelers. Additionally, Dubai’s international ports handled 3.7 percent more containers, while Abu Dhabi’s ports experienced a 36 percent increase in cargo volume.

Construction and building activities grew by 6.2 percent, largely due to increased public capital expenditures, totaling 4.8 billion dirhams in the first quarter, compared to the previous year. The restaurant and hotel sector expanded by 4.6 percent, bolstered by an 11 percent rise in international tourists visiting Dubai, which welcomed 5.18 million visitors. Abu Dhabi also experienced strong tourism performance, with increases in hotel occupancy rates and revenue per available room.

In terms of non-oil GDP contributions, trade activities led with a 16.1 percent share, followed by manufacturing at 14.6 percent, and financial and insurance activities at 13.4 percent. Construction and real estate activities contributed 11.8 percent and 7.1 percent, respectively.