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.


Tencent Cloud to launch Saudi operations in 2025 with $150m investment, says official

Tencent Cloud to launch Saudi operations in 2025 with $150m investment, says official
Updated 12 sec ago
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Tencent Cloud to launch Saudi operations in 2025 with $150m investment, says official

Tencent Cloud to launch Saudi operations in 2025 with $150m investment, says official

RIYADH: Tencent Cloud will begin operations in Saudi Arabia this year with an initial investment of $150 million, as the Chinese tech giant moves to expand its footprint in the Middle East, a company official said. 

Dan Hu, vice president of Tencent Cloud International for the Middle East and North Africa, said the company’s expansion aligns with Saudi Arabia’s broader push to attract foreign investment and establish itself as a global technology hub under Vision 2030. 

“Tencent Cloud’s Saudi region will become operational by 2025. We will see it this year,” Hu said in an interview with Arab News at the LEAP conference in Riyadh. “We are going to invest $150 million for the local infrastructure, we source partnerships over the next few years. We have to support the country’s Vision 2030.” 

The company is working to build its presence in the Kingdom by assembling a local team, forging partnerships, and expanding its customer base. 

“In China, Tencent was established more than two decades ago. We are probably one of the most reputable companies in China. We have WeChat, we have games ecosystem,” he said. 

While Tencent has an established and mature ecosystem in China, Hu acknowledged the company is still in the early stages of expansion in the Middle East. 

“Our data center will be operational by the end of this year. We are still trying to build up our local teams and to build up our local ecosystem, our suppliers and our customers, our system integrators, and our ecosystem partners,” he said. 

Despite its nascent presence in the Kingdom, Tencent has already secured major clients, including clean-energy leader BYD, even before its Saudi operations officially launch. 

Hu sees strong growth potential for cloud computing in the region, particularly in applications leveraging artificial intelligence and generative AI. 

“I think cloud computing can be a very robust infrastructure for AI applications. Cloud computing can be the underlying infrastructure to support the prosperity of AI applications in the Kingdom and also in the region,” he said. 

Hu added that Tencent Cloud has tailored offerings for customers in Saudi Arabia, including gaming solutions, live streaming, and real-time applications. 


IBM expands AI workforce in Saudi Arabia, aligning with Vision 2030: CEO 

IBM expands AI workforce in Saudi Arabia, aligning with Vision 2030: CEO 
Updated 56 min 49 sec ago
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IBM expands AI workforce in Saudi Arabia, aligning with Vision 2030: CEO 

IBM expands AI workforce in Saudi Arabia, aligning with Vision 2030: CEO 

RIYADH: US-based tech giant IBM employs a majority of Saudi nationals at its artificial intelligence lab in the Kingdom, underscoring the nation’s commitment to developing local talent. 

It was disclosed during a panel titled “Bringing Tech to Life” on the opening day of LEAP 2025, Riyadh’s flagship technology event, held from Feb. 9-12 under the theme “Into New Worlds.” 

Speaking at the discussion, IBM Chairman and CEO Arvind Krishna said: “Over 70 percent of our hires in (IBM’s AI and R&D lab) are Saudi nationals, not expats.”    

Launched at LEAP 2024, IBM’s $200 million Software Lab in Riyadh supports Vision 2030 by driving digital innovation, job creation, and global tech solutions, aligning with the Kingdom’s pledge to invest $100 billion in its technology sector. 

Saudi Minister of Communications and Information Technology Abdullah Al-Swaha, addressing industry leaders and aspiring innovators, stressed the importance of understanding market shifts.  

“I think no leader in the industry can really help educate all of us — leaders in the room, the youth, the women, the talent — about picking up market transitions and where the market is heading,” he said. 

Krishna acknowledged the growing excitement around AI but noted that for numerical purposes the technology has been in use for two decades. 

He also predicted a seismic shift in computing capabilities, with quantum computing expected to achieve a major breakthrough within the next two to three years.

“In three to five years, we will see something amazing on quantum computers,” he added.  

A key transformation Krishna highlighted was in AI training costs, forecasting a dramatic reduction. “I believe the cost of training will become 1 percent — one over 100 of what it used to be. DeepSeek was a proof point of that,” he noted. 

DeepSeek, a Chinese AI firm, gained rapid attention with its R1 large language model, released on Jan. 20 at a fraction of typical development costs.

Offered under an open-source license, DeepSeek-R1 quickly soared in popularity, with its AI assistant app topping Apple’s App Store and surpassing OpenAI’s ChatGPT. Its success triggered a stock market shakeup as investors reevaluated major US AI companies.  

While large general-purpose AI models currently dominate the field, Krishna emphasized the potential of domain-specific models, which today account for just 1 percent of usage.

“All the fascination is with these large models that serve everybody, but we believe in the next three to four years, domain-specific models will make up over half of all deployed models,” he said. 

LEAP 2025 aims to expand business networking and investment opportunities in the tech sector. The event plays a crucial role in Saudi Arabia’s goal of becoming a global technology hub, in line with Vision 2030’s economic diversification strategy.


Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh

Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh
Updated 47 min 8 sec ago
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Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh

Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh
  • Facility is expected to begin production in 2026
  • Collaboration is projected to generate up to 15,000 direct and 45,000 indirect jobs

RIYADH: Saudi Arabia’s Public Investment Fund’s Alat and Chinese tech giant Lenovo have officially broken ground on a new manufacturing hub in Riyadh, marking a key milestone in their $2 billion strategic partnership.

Located within the Special Integrated Logistics Zone at Riyadh Integrated, the facility will span 200,000 sq. meters and is expected to begin production in 2026. 

The collaboration is projected to generate up to 15,000 direct and 45,000 indirect jobs while contributing as much as $10 billion to the Kingdom’s non-oil gross domestic product by 2030. 

The hub will produce millions of “Saudi Made” laptops, desktops, and servers, contributing to the nation’s Vision 2030 goals of economic diversification and industrial development. 

The two companies took a step further in their partnership during LEAP25 held from Feb. 9— 12 in Riyadh, announcing the establishment of an advanced manufacturing and technology center based on artificial intelligence and robotics. 

This is also part of PIF’s strategy to boost the Kingdom’s local manufacturing by increasing local content from 47 percent in 2024 to 60 percent by 2025, contributing $320 billion to non-oil GDP and creating 1.8 million jobs. 

“Through this powerful strategic collaboration and investment with Alat, we gain greater global presence, a strong regional foothold, and the ability to capitalize on the incredible growth momentum in Saudi Arabia and the wider MEA region,” said Yuanqing Yang, chairman and CEO of Lenovo. 

The groundbreaking follows the completion of Lenovo’s $2 billion investment in Alat, which was finalized after securing shareholder and regulatory approvals. 

Initially announced in May, the deal was completed in January and involves the issuance of three-year zero-coupon convertible bonds, establishing a long-term partnership between the two firms. 

The manufacturing facility will complement Lenovo’s global production network, which includes over 30 factories across China, Germany, India, Japan, the US, and other markets. 

According to Lenovo, the new hub will enhance supply chain resilience and improve service to customers across the Middle East and Africa region. 

The firm also plans to establish its MEA regional headquarters in Riyadh, expand research and development activities, and open a flagship retail space in the Kingdom. 

Amit Midha, the CEO of Alat, emphasized the broader economic impact of the collaboration, saying: “We are incredibly proud to become a strategic investor in Lenovo and partner with them on their continued journey as a leading global technology company.” 

Beyond manufacturing, the agreement includes a business development partnership leveraging Alat’s regional relationships and market expertise.

Alat, which aims to build advanced manufacturing capabilities across multiple industries, has outlined plans to produce goods across 34 product categories within nine business units, including semiconductors, smart devices, electrification, and artificial intelligence infrastructure. 

Lenovo, recognized as one of Gartner’s top 25 supply chains, expects the Saudi facility to strengthen its operations in the MEA region while supporting the Kingdom’s ambition to become a global technology and manufacturing hub. 


Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469

Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469
Updated 09 February 2025
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Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469

Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469

RIYADH: Saudi Arabia’s Tadawul All Share Index ended Sunday’s trading in green, as it gained 35.56 points or 0.29 percent to close at 12,469.14.

The main index witnessed a total trading turnover of SR4.70 billion ($1.25 billion), with 94 stocks advancing and 134 retreating. 

Saudi Arabia’s parallel market Nomu also gained 28.38 points to close at 31,414.65. The MSCI Tadawul Index edged up by 0.28 percent to 1,550.26. 

Shatirah House Restaurant Co. was the best-performing stock on the main market, with its share price surging by 5.62 percent to SR23.68. 

The share price of Raoom Trading Co. increased by 3.7 percent to SR179.40. Rasan Information Technology Co.’s stock price also rose by 3.36 percent to SR92.30. 

Conversely, LIVA Insurance Co. saw its share price dropping by 3.31 percent to SR17.50. 

The share price of Lamasat Co. which started trading on Nomu on Sunday rose by 29.91 percent to SR7.47. 

On the announcements front, Arabian Co. for Agricultural & Industrial Investments, also known as Entaj said that it has set the price range for its initial public offering in the main market at SR46-SR50.

According to a press statement, the institutional book-building process began on Feb.9 and will run through 3 p.m. Saudi time on Feb.13. Entaj eyes floating 9 million shares on TASI, representing 30 percent of its capital. 

Bank Albilad said that its board of directors recommended a 20 percent capital top-up from SR12 billion to SR15 billion. According to a Tadawul statement, the capital top-up will be done by distributing one bonus share for every five shares held. 

The share price of Bank Albilad rose by 2.76 percent to SR39.05.


Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders

Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders
Updated 09 February 2025
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Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders

Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders
  • Company said it had completed the sukuk issuance through US dollar-denominated trust certificates
  • Ma’aden’s $1.25bn Shariah-compliant bond was issued in two tranches

JEDDAH: The Saudi Arabian Mining Co., or Ma’aden, priced its $1.25 billion debut sukuk, oversubscribed by 9.2 times, with demand exceeding $11 billion for the five and ten-year tranches, according to an official statement.

In a bourse filing, the company said it had completed the sukuk issuance through US dollar-denominated trust certificates, adding that they will be listed on the London Stock Exchange’s International Securities Market and may be sold under Regulation S and Rule 144A of the amended US Securities Act of 1933.

The Tadawul statement said Ma’aden’s $1.25bn Shariah-compliant bond was issued in two tranches, including a five-year $750m tranche at 5.25 percent and a 10-year $500m tranche at 5.5 percent. The issuance includes 3,750 trust certificates for the five-year tranche and 2,500 for the 10-year, each valued at $200,000. Settlement is set for Feb. 13.

CEO of Ma’aden Bob Wilt said the success of the inaugural international sukuk offering demonstrates investors’ confidence and interest in Ma’aden’s growth, according to a press release.

“Such strong international investor demand, some of the highest seen in Saudi Arabia, is testament to global confidence in our strategic direction and the integral role we play in unlocking Saudi Arabia’s $2.5 trillion of untapped mineral potential,” the CEO said.

Wilt added that as they continue to deliver on their growth strategy, the funding will accelerate their efforts to secure essential minerals that drive the energy transition and long-term development. “We remain committed to building a globally competitive mining sector as the third pillar of Saudi Arabia’s economy.”

Louis Irvine, the chief financial officer of Ma’aden, said the “successful” sukuk issuance reflects the strength of their business, their disciplined financial strategy, and the confidence global investors have in the future of the company.

“We are particularly pleased to welcome new investors whose support will be instrumental as we continue to build mining as the third pillar of the Saudi economy, a key objective of the Kingdom’s Vision 2030. The funds raised will enable us to execute our expansion plans across all our divisions efficiently while maintaining a robust balance sheet as we move forward.”

The issuance aligns with forecasts that global sukuk offerings will total between $190 billion and $200 billion in 2025, driven by growing activity in key markets such as the Kingdom and Indonesia, according to a January analysis by S&P Global.

Global sukuk issuances totaled $193.4 billion in 2024, a slight decrease from $197.8 billion in 2023. Despite the marginal decline, the market saw a 29 percent year-on-year increase in foreign-currency-denominated sukuk, surging to $72.7 billion in 2024.

Under Ma’aden’s International Trust Certificate Issuance Program, the move highlights the company’s strong financial position and demonstrates investor confidence in its long-term growth strategy. 

The sukuk issuance proceeds will support the mining giant’s expansion initiatives and further solidify its standing as a leading mining and metals enterprise in the Kingdom and beyond.

The national mining company announced that Citi and HSBC acted as joint global coordinators, joint active bookrunners, and joint lead managers, while Al Rajhi Capital, J.P. Morgan, and SNB Capital served as joint active bookrunners and joint lead managers.

BNP Paribas, BSF Capital, GIB Capital, Natixis, and Standard Chartered Bank acted as joint passive bookrunners and joint lead managers, while HSBC also served as rating advisers.

The firm, rated “Baa1” by Moody’s and “BBB+” by Fitch, said the sukuk are expected to be rated on par with Ma’aden’s ratings.

In January, Ma’aden awarded three contracts worth SR3.45 billion ($921.58 million) for its third phosphate fertilizer plant, according to a filing with Tadawul at that time.

The company named China National Chemical Engineering Co., Sinopec Nanjing Engineering and Construction, and Turkiye-based Tekfen Construction and Installation Co. as the contractors.