Saudi Arabia’s surge in female workforce participation drives economic impact

Saudi Arabia’s surge in female workforce participation drives economic impact
Saudi conductors walk beside a high-speed train ferrying pilgrims to Mecca, in Saudi Arabia's Red Sea coastal city of Jeddah, on January 22, 2023. (AFP)
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Updated 18 August 2024
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Saudi Arabia’s surge in female workforce participation drives economic impact

Saudi Arabia’s surge in female workforce participation drives economic impact

RIYADH: Saudi Arabia’s workforce is experiencing a surge in female participation, driven by improved educational opportunities, declining fertility rates and a more inclusive cultural environment.

These developments have propelled the Kingdom beyond its Vision 2030 targets, according to a recent S&P Global report.

Both the government and private sector have implemented proactive measures, including legal reforms and diversity initiatives, to empower women and foster a more inclusive work environment.

This aligns with Saudi Arabia’s strategic goals to promote gender equality and encourage greater female participation in the workforce.

It comes as the Gulf Cooperation Council experiences unprecedented momentum in women’s participation in the workforce.

According to the latest figures from the World Bank, the female labor force participation rate in Saudi Arabia stands at 34.5 percent, compared to 79.9 percent for males.

Anne-Laure Malauzat, a partner at Bain & Co. in the Middle East, told Arab News that the statistic has surpassed the original target of 30 percent, prompting the Kingdom to set a new goal of 40 percent by 2030.

She highlighted several efforts in the Kingdom aimed at boosting female employment.

“On the governmental side, some examples include the Vision 2030 in Saudi Arabia — out of its 11 Vision Realization Programs, two of them are heavily focused on empowering women, namely the Human Capability Development Program and the Quality of Life Program, and female participation in the workforce is a critical enabler to the success of the other 9 programs,” Malauzat said.

Red Sea Global Spokesperson Zainab Hamidaddin Al-Hanoof Al-Hazzani said that the Kingdom surpassed its 30 percent female workforce participation target ahead of schedule.

“At Red Sea Global, we recognize the importance of promoting gender diversity in the workforce and have made significant efforts to leverage the growing trend of women entering the workforce,” she added.

The firm takes pride in having women across all levels of the organization and within the destination, including in senior executive roles, Al-Hazzani said.

“Women contribute significantly across all departments at Red Sea Global, spanning from master planning and construction to scientific research. In certain departments, female representation reaches as high as 44 percent, surpassing the company’s average.”

Laila Kuznezov, director of implementation practice at Oliver Wyman, cited S&P Global Rating’s projection that if the existing rate of growth in female workforce participation continues, Saudi Arabia’s economy could receive a boost of $39 billion, or 3.5 percent, by 2032.

She added that the Kingdom has implemented a series of initiatives to empower women, including raising awareness about the importance of female participation in the workforce, penalizing discrimination, improving job matching, and offering training and support programs specifically aimed at women.

Kuznezov highlighted how Saudi Arabia is committed to fostering a more diverse and inclusive work environment, acknowledging that tapping into the full potential of its workforce is crucial for reaching its ambitious goals.

“Women are increasingly entering the workforce at all levels, including in high-skilled and traditionally male-dominated sectors like engineering and finance,” she said.

“The government also recognizes the importance of family life and has implemented measures to support women’s professional growth alongside their family responsibilities. This includes initiatives like promoting flexible working arrangements and providing expanded childcare options.”

Beyond legal reforms, the government has led awareness campaigns designed to shift societal attitudes, Kuznezov added.

These initiatives highlight the accomplishments of prominent Saudi women, showcasing them as role models and fostering conversations about the benefits of enhancing female participation in the workforce.

“With this comprehensive approach, Saudi Arabia is paving the way for a future where women can actively participate and thrive in all sectors of the economy,” Kuznezov said.

She added that organizations like the Badir Program for Technological Entrepreneurs offer essential training and mentorship for Saudi women entrepreneurs in the tourism and hospitality sectors.

These programs are designed to equip women with the skills necessary to start and run their own businesses, thereby nurturing a culture of entrepreneurship within these industries.

“However, it’s important to recognize that Saudi women are well prepared to enter the workforce. They boast a high level of education across a range of qualifications. To fully unlock their potential, a focus on job creation is crucial, particularly within the private sector,” Kuznezov said.

As it stands, 20 percent of women are over-educated for the positions they hold, compared to 14 percent of men, she added. “The availability of a highly educated and motivated workforce is a strong foundation for the creation of more high-quality and productive employment opportunities.”

Kuznezov highlighted the importance of empowering women to assume leadership and managerial roles, which are expected to become more prevalent in high-growth sectors such as tourism and hospitality.

“By facilitating these advancements, we can ensure that women’s skills and talents are fully utilized, contributing significantly to the Kingdom’s economic diversification and overall success,” she said.

From RSG’s perspective, the goal is to see Saudi women take on leadership roles and drive a more inclusive society, particularly within the tourism and hospitality sectors.

“We’re dedicated to fostering opportunities for women in these fields. To achieve this vision, we’ve implemented various programs and initiatives aimed at attracting, retaining and promoting female talent within our organization,” Al-Hazzani said.

The spokesperson added that RSG prioritizes fairness in its recruitment processes by using gender-neutral job advertisements and ensuring diverse candidate pools.

The company has launched several programs, including the Red Sea Vocational Training Program and The Red Sea Pioneers Vocational Training Program, to provide training and employment opportunities for Saudis in the tourism sector, she said.

“Additionally, our partnership with the University of Prince Mugrin and Ecole Hotellerie de Lausanne in Switzerland ensures that young Saudis receive world-class education in hospitality. While these schemes are for men and women, we expect young Saudi women to benefit greatly given tourism, traditionally, is a sector that women over-index in.”

RSG acknowledges that increasing the number of women in the workforce is only part of the effort, Al-Hazzani said. The company is also focused on nurturing women’s professional development through various avenues, including training, mentorship and leadership programs.

“Our Female Leadership Program is designed to fortify the presence of women in leadership positions within our organization, equipping them with the necessary skills to thrive in traditionally male-dominated roles globally over the long term.”


Fortune Global Forum to be held in Riyadh in 2025

Fortune Global Forum to be held in Riyadh in 2025
Updated 48 sec ago
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Fortune Global Forum to be held in Riyadh in 2025

Fortune Global Forum to be held in Riyadh in 2025
RIYADH: The Saudi capital will welcome world business elites next year as the Fortune Global Forum makes its first appearance in Riyadh.

The forum, which is organized by Fortune magazine, brings together top business leaders from across the globe on the dynamic frontiers of global enterprise.

Fahd bin Abdulmohsan Al-Rasheed, the chairman of the Saudi Convention and Exhibitions General Authority, said the forum has in the past 30 years brought together “the titans of industry around the world to the forefront of economic development.”

“And that forefront today is the Kingdom of Saudi Arabia,” Al-Rasheed told the forum in New York, where delegates have been taking part in the three-day gathering, which concluded on Tuesday.

He urged delegates to come to the Kingdom’s business epicenter to engage and explore what Saudi Arabia has to offer.

Saudi Arabia launches company to transform Asir into global tourism hub

Saudi Arabia launches company to transform Asir into global tourism hub
Updated 14 November 2024
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Saudi Arabia launches company to transform Asir into global tourism hub

Saudi Arabia launches company to transform Asir into global tourism hub

RIYADH: Saudi Arabia’s Asir region has launched a new tourism venture through a partnership with the aim of creating a holding company to transform the area into a global tourist destination.

The collaboration between Aseer Investment Co., a subsidiary of the Public Investment Fund, and Rikaz Real Estate, aligns with the goal of transforming Asir into a world-class tourist destination that combines authentic heritage with sustainable development, according to the Saudi Press Agency.

The holding company seeks to contribute to enhancing a tourism environment that enriches guests’ experiences with unique offerings, connecting visitors to local culture and community traditions, SPA reported.

It is also committed to promoting sustainable tourism by protecting the environment, developing local communities, and collaborating with artisans and local businesses to preserve the authenticity of Asir’s heritage.

In October, the Kingdom’s Abha city secured a new investment partnership to boost tourism by developing culturally rich dining and retail experiences. 

PIF firm Aseer Investment Co. signed the deal with Nimr Real Estate and the National Co. for Tourism, or Syahya, to propel the project, the Saudi Press Agency reported. 

This aligns with the objectives of developing Abha, which will offer a range of benefits, including retail stores that reflect the cultural heritage of the Asir region.

The partnership also seeks to be a model for multiple collaborations with private sector investors and create more regional job opportunities.

Investments in the region are expected to create between 14,000 and 18,000 job prospects and contribute to up to 6 percent of the non-oil gross domestic product within 10 years, as outlined by AIC Chief Executive Osama Al-Othman in February.

Saudi Arabia emerged as a leader in tourism growth among G20 nations, experiencing a 73 percent increase in international visitors in the first seven months of 2024 compared to 2019.

According to the UN World Tourism Barometer report in September, the Kingdom welcomed 17.5 million international tourists during this timeframe, showcasing its growing allure as a global travel destination.

This surge is part of the nation’s Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil revenues.

“Saudi Arabia cements its global leadership and takes the first spot among G20 countries in international tourist arrivals growth, with a 73 percent increase in the first seven months of 2024 compared to the same period in 2019,” stated the Saudi Tourism Ministry on X.

Under the National Tourism Strategy, the Kingdom aims to attract 150 million visitors by 2030 and increase the sector’s contribution to the nation’s gross domestic product from 6 percent to 10 percent.

These goals reflect the country’s commitment to strengthening its tourism sector and enhancing its global appeal.


IMF, Saudi Arabia announce new annual conference tackling global economic challenges

IMF, Saudi Arabia announce new annual conference tackling global economic challenges
Updated 14 November 2024
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IMF, Saudi Arabia announce new annual conference tackling global economic challenges

IMF, Saudi Arabia announce new annual conference tackling global economic challenges

RIYADH: The International Monetary Fund and Saudi Arabia will jointly organize a high-level annual conference in AlUla to discuss global economic challenges, it has been announced.

The AlUla Conference for Emerging Market Economies will bring together a select group of finance ministers, central bank governors, and policymakers, along with leaders from the public and private sectors, representatives from international institutions, and members of academia.

According to a joint statement by Kristalina Georgieva, managing director of IMF and the Minister of Finance Mohammed Al-Jadaan, the first edition of this series will be held from Feb. 16-17, 2025.

“The world is confronting deeper and more frequent shocks, including from conflicts, geoeconomic fragmentation, pandemics, climate change, food insecurity, and the digital divide,” according to the statement.

They continued: “If not addressed adequately, these shocks put at risk emerging market economies’ hard-won improvements in living standards. Such setbacks would affect large segments of the world population and put at risk global growth and macro-financial stability.”

The gathering will offer a platform to exchange views on domestic, regional, and global economic developments and discuss policies and reforms to spur inclusive prosperity and build resilience supported by international cooperation.

Recent economic issues affecting the global landscape include rising inflation rates, driven by supply chain disruptions and increased demand for goods post-pandemic.

Supply chain delays continue to impact the availability of essential products, causing bottlenecks in manufacturing and increasing costs.

Additionally, geopolitical conflicts, such as the war in Gaza, have disrupted energy supplies and food exports, leading to global food insecurity and fuel price volatility.

Concerns over the using the Red Sea shipping lane increased dramatically at the end of 2023, when Houthi militants stepped up attacks on vessels in the wake of the escalation of the Israel-Hamas conflict.

The effects of these challenges pose significant risks to economic stability, especially for emerging markets that are more vulnerable to such global shocks.

The AlUla conference is the latest example of the growing relationship between Saudi Arabia and the IMF, with the organization in April establishing its first office in the Middle East and North Africa region in Riyadh.

The facility was launched during the Joint Regional Conference on Industrial Policy for Diversification, jointly organized by the IMF and the Ministry of Finance, on April 24.

The new office aims to strengthen capacity building, regional surveillance, and outreach to foster stability, growth, and integration, thereby promoting partnerships in the Middle East and beyond, according to the Saudi Press Agency.

The work hub will promote closer collaboration between the IMF and regional institutions, governments, and other stakeholders, according to the SPA report.

The IMF also expressed its gratitude to the Kingdom for its financial contribution aimed at supporting capacity development in member countries, including fragile states.


Closing Bell: Saudi Arabia’s TASI ends in the red, trading volume hits $2.95bn

Closing Bell: Saudi Arabia’s TASI ends in the red, trading volume hits $2.95bn
Updated 14 November 2024
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Closing Bell: Saudi Arabia’s TASI ends in the red, trading volume hits $2.95bn

Closing Bell: Saudi Arabia’s TASI ends in the red, trading volume hits $2.95bn

RIYADH: The Tadawul All Share Index concluded the last session of the week at 11,791.18 points, down by 139.27 points or 1.17 percent.

The MSCI Tadawul 30 Index also saw a decline, dropping 19.18 points to close at 1,481.36, reflecting a 1.28 percent loss. In contrast, the parallel market Nomu finished Thursday’s trading at 29,467.71 points, up 262.18 points or 0.90 percent.

TASI reported a trading volume of SR11.10 billion ($2.95 billion), with 51 stocks advancing and 182 declining. The top performer of the day was Saudi Cable Co., which saw its share price surge by 5.10 percent to SR92.70.

Other strong performers included Shatirah House Restaurant Co., which gained 3.75 percent to reach SR21, and Arabian Mills for Food Products Co., which rose by 3.08 percent to SR53.60. Naseej International Trading Co. and Saudi Real Estate Co. also posted notable gains.

The worst performer was Saudi Real Estate Co., which dropped 4.94 percent to close at SR10. Alkhaleej Training and Education Co. and Red Sea International Co. also suffered significant losses, with their share prices falling by 4.90 percent to SR29.10 and 4.84 percent to SR68.80, respectively. Astra Industrial Group and Al-Omran Industrial Trading Co. were also among the day’s largest decliners.

On the parallel market, Nomu, Alqemam for Computer Systems Co. was the top gainer, rising by 9.57 percent to SR103. Other gainers included Dar Almarkabah for Renting Cars Co., which climbed 9.10 percent to SR42.55, and Horizon Educational Co., which rose by 7.58 percent to SR79.50. Mulkia Investment Co. and Knowledge Tower Trading Co. also saw significant increases.

On the losing side of Nomu, WSM for Information Technology Co. recorded the largest drop, with its share price falling by 6.18 percent to SR44. Osool and Bakheet Investment Co. and Natural Gas Distribution Co. also experienced notable declines, with their shares dropping by 5.37 percent to SR37.85 and 5 percent to SR57, respectively.

 


Leaders stress urgent need for climate finance at COP29 ministerial dialogue

Leaders stress urgent need for climate finance at COP29 ministerial dialogue
Updated 14 November 2024
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Leaders stress urgent need for climate finance at COP29 ministerial dialogue

Leaders stress urgent need for climate finance at COP29 ministerial dialogue

RIYADH: Global climate finance continues to fall short of expectations, as leaders gathered at the COP29 Ministerial Dialogue on Climate Finance to address ongoing challenges and map out next steps.

The meeting, held in Baku, Azerbaijan, underscored the urgent need for increased and more effective funding mechanisms. COP29 President Mukhtar Babayev emphasized that climate finance plays a central role in the broader negotiations.

“The urgency of the situation is evident,” Babayev remarked, pointing to the severe impacts of climate change observed over the past year. “Recently, we witnessed catastrophic flooding in Spain, and in the Pacific region, island communities are faced with the possibility of being wiped out entirely. We must act now; failure to do so will have grave human and economic costs.”

The president stressed the importance of fulfilling the $100 billion-per-year commitment made in Copenhagen and reiterated in Paris, urging leaders to reflect on lessons learned and consider the quality and allocation of financial resources.

Developing countries once again voiced the need for tangible action, with Fiji’s Deputy Prime Minister Biman Prasad highlighting the importance of aligning climate finance with the goals of the Paris Agreement.

“This is a ‘put your money where your mouth is’ moment,” Prasad said. “The 1.5°C temperature goal and the Paris Agreement itself will not be deliverable from both an economic and scientific perspective if we do not invest right. The New Collective Quantified Goal is critical for aligning our priorities and addressing major inconsistencies,” he added.

The EU reaffirmed its commitment to climate finance, noting that the $100 billion goal was first collectively met in 2022, with contributions reaching $115.9 billion.

“The EU and its member states contributed €28.5 billion, or around $30 billion, in climate finance from public sources,” a representative said. “Almost half of the public funding came in the form of grants, with a significant portion provided on concessional terms. We need to make further efforts to facilitate the mobilization of private funding, as it remains a key source of climate finance,” the representative added.

Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, emphasized the critical juncture at which the global community now finds itself.

“The huge opportunities we have and the terrible risks we face are real,” Stiell said. “It’s time to take action to bridge gaps, solve problems, and come together to ensure climate finance and climate action benefit everyone.”

Sweden also announced a significant new contribution, with Ministerial representatives unveiling an $8 billion Swedish krona ($723.6 million) pledge to the second replenishment of the Green Climate Fund.

“This makes Sweden the largest per capita donor to the GCF among the larger donors,” the Swedish representative noted.

As discussions progressed, leaders acknowledged the widening gap between current financial commitments and the funds required to meet the 1.5°C target. There were calls for more robust mobilization of both public and private finance.

The COP29 president concluded: “Delivering the climate fairness that developing countries need is one of the main metrics of shared success. We can learn from past efforts to inform the road ahead, but significant determination and leadership from all parties are required to bridge these critical gaps.”