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.


Pakistan, Saudi Arabia sign agreement to boost cooperation in public sector auditing

Pakistan, Saudi Arabia sign agreement to boost cooperation in public sector auditing
Updated 03 February 2025
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Pakistan, Saudi Arabia sign agreement to boost cooperation in public sector auditing

Pakistan, Saudi Arabia sign agreement to boost cooperation in public sector auditing
  • Development comes during a visit to Pakistan by a Saudi General Court of Audit delegation, led by Hussam bin Abdulmohsen Al-Angari
  • Auditor General of Pakistan’s office says both sides agreed to collaborate on training programs, exchange of trainers to tackle audit challenges

ISLAMABAD: Pakistan and Saudi Arabia have signed a Memorandum of Understanding to increase collaboration in public sector auditing through enhanced cooperation between audit institutions of both countries as well as training programs and the exchange of trainers, a spokesperson for the Auditor-General of Pakistan’s office said on Monday.

The development comes during a four-day visit to Pakistan by a delegation of Saudi Arabia’s General Court of Audit, led by GCA President Hussam bin Abdulmohsen Al-Angari, which arrived on Sunday.

The agreement was signed during AGP Muhammad Ajmal Gondal’s meeting with the Saudi delegates, aiming to strengthen audit cooperation, enhance knowledge-sharing, and improve governance, transparency and accountability in government spending.

Muhammad Raza Irfan, a public relations officer at the AGP’s office, told Arab News the agreement will not only strengthen professional relations between auditing institutions of both countries, but also further promote bilateral cooperation between Pakistan and Saudi Arabia.

“This collaboration marks a significant step toward fostering international cooperation in auditing,” AGP Gondal was quoted as saying in a statement issued from his office.

“The exchange of ideas and methodologies will undoubtedly strengthen our capacity to meet emerging challenges and set new benchmarks for public accountability.”

Discussions at Monday’s meeting focused on fostering closer ties between the Supreme Audit Institutions of Pakistan and Saudi Arabia, sharing innovative audit methodologies, and planning collaborative initiatives for the future, according to the AGP office.

The two sides agreed to share best practices in audit standards, performance audits, and citizen participatory audits, and expand expertise in thematic, environmental and impact audits.

“It also agreed to collaborate on training programs, exchange trainers, address emerging auditing challenges and plan cooperative audits, including a performance audit on the oil and gas sector in 2025,” the statement read.

Both sides reaffirmed their shared commitment to promoting transparency, accountability and excellence in public sector auditing.

Dr. Alangari praised Pakistan’s initiatives in modernizing audit practices and expressed his enthusiasm for future collaborations, according to the AGP office.

“The partnership between our two SAIs is a testament to the shared vision of accountability and transparency,” the GCA president was quoted as saying.

“We are eager to build upon this momentum and address challenges collectively, ensuring value addition to public sector auditing globally.”

The meeting underscored the importance of international collaboration to address emerging challenges and leverage innovative technologies in auditing.

“The Saudi side also announced the launch of the second phase of the Fund for Improved SAI Performance, which is scheduled for mid-February,” the statement said.

“The office of the AGP was also offered to apply for the second phase of FISP, which provides funds of up to $40,000.”

The GCA’s FISP initiative is aimed at providing funding to SAIs in developing countries to help them improve their performance and capacity in conducting audits and upholding accountability within their respective governments.

Pakistan and Saudi Arabia are close regional partners and economic allies, and both countries signed 34 agreements worth $2.8 billion in October last year. The Kingdom is home to over 2 million Pakistani expatriates, serving as the top destination for remittances for the cash-strapped South Asian country.


Closing Bell: Saudi indices close in red at 12,377

Closing Bell: Saudi indices close in red at 12,377
Updated 03 February 2025
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Closing Bell: Saudi indices close in red at 12,377

Closing Bell: Saudi indices close in red at 12,377
  • MSCI Tadawul Index dropped by 3.79 points, or 0.25%, to close at 1,541.82
  • Parallel market Nomu lost 48.69 points, or 0.16%, to close at 31,056.38

RIYADH: Saudi Arabia’s Tadawul All Share Index dropped on Monday, losing 32.84 points, or 0.26 percent, to close at 12,377.03.  

The total trading turnover of the benchmark index was SR6.55 billion ($1.75 billion), as 65 of the listed stocks advanced, while 170 retreated.   

The MSCI Tadawul Index also dropped by 3.79 points, or 0.25 percent, to close at 1,541.82.  

The Kingdom’s parallel market Nomu lost 48.69 points, or 0.16 percent, to close at 31,056.38. This comes as 37 of the listed stocks advanced and 43 retreated.  

Mutakamela Insurance Co. was the best-performing stock of the day, with its share price surging by 4.88 percent to SR18.90.  

Other top performers included Saudi Arabian Cooperative Insurance Co., which saw its share price rise by 4.59 percent to SR18.70, and Saudi Cable Co., which saw a 3.30 percent increase to SR131.60.  

Arriyadh Development Co. rose 3.01 percent to SR35.95, while Al Mawarid Manpower Co. gained 2.87 percent to SR136. 

The National Co. for Glass Industries saw the steepest decline of the day, with its share price easing 3.72 percent to close at SR54.40. 

Elm Co. fell 2.84 percent to SR1,123, while Mouwasat Medical Services Co. dropped 2.78 percent to SR87.50. 

Bawan Co. also faced losses, with its share price dipping 2.75 percent to SR56.50, while Saudi Awwal Bank saw a 2.46 percent decline to settle at SR35.75. 

Saudi Tadawul Group Holding Co. announced that its subsidiary, Tadawul Advanced Solutions Co., also known as WAMID, has finalized the acquisition of the remaining 49 percent stake in Direct Financial Network Co., completing the regulatory requirements on Feb.2. 

The shares, previously owned by National Two Ventures, were acquired for SR220.5 million, making WAMID the sole owner of DirectFN. 

The transaction follows WAMID’s initial purchase of a 51 percent stake in DirectFN in May 2023 for SR134 million. 

With this latest acquisition, WAMID now holds full ownership of the financial technology company, aligning with Saudi Tadawul Group’s strategy to enhance its technological and financial services offerings. 

Saudi Tadawul Group Holding Co.’s share price saw a slight 0.76 percent dip on Monday to settle at SR209.80. 

Riyad Bank announced its financial results for 2024, posting a 15.9 increase in net profit, reaching SR9.32 billion, up from SR8.04 billion in 2023. 

The growth was driven by an 18.16 percent rise in total income from special commissions, which reached SR21.62 billion, supported by higher income from loans and investments. 

Total operating profit rose 8.71 percent to SR17.28 billion, bolstered by increases in fee income, exchange income, and gains on non-trading investments. 

Operating expenses related to credit losses and asset impairments dropped 17.2 percent to SR1.63 billion, reflecting improved asset quality. 

Assets grew by 16.42 percent to SR450.37 billion, with loans and advances rising 16.65 percent to SR320.08 billion. 

Client deposits also increased significantly, up 20.21 percent to SR306.42 billion. Earnings per share rose from SR2.58 in 2023 to SR3.01 in 2024. 

Riyad Bank saw a 0.34 percent increase in its share price on Monday to reach SR29.60. 


OPEC+ reaffirms commitment to production cuts

OPEC+ reaffirms commitment to production cuts
Updated 03 February 2025
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OPEC+ reaffirms commitment to production cuts

OPEC+ reaffirms commitment to production cuts
  • Meeting reviewed crude oil production data for November and December
  • OPEC welcomed renewed pledges from overproducing countries to achieve full compliance with production targets

RIYADH: OPEC+ members reaffirmed their commitment to production cuts aimed at maintaining stability in the global oil market during a meeting held on Monday.

The 58th Joint Ministerial Monitoring Committee session, conducted via videoconference, reviewed crude oil production data for November and December 2024 and highlighted the strong overall compliance by both OPEC and non-OPEC countries involved in the Declaration of Cooperation.

The committee reiterated its commitment to the DoC, which is set to extend through the end of 2026. It also commended Kazakhstan and Iraq for their improved compliance, including the additional voluntary production adjustments they made.

OPEC also welcomed the renewed pledges from overproducing countries to achieve full compliance with production targets.

These countries are expected to submit updated compensation schedules to the OPEC Secretariat by the end of February 2025, covering the overproduced volumes since January 2024.

The committee stressed its ongoing role in monitoring adherence to production adjustments. It will continue to track additional voluntary production cuts announced by participating OPEC and non-OPEC nations, in line with the decisions made during the 52nd JMMC meeting on Feb. 1, 2024.

In a procedural update, the committee announced that, effective Feb. 1, 2025, Kpler, OilX, and ESAI will replace Rystad Energy and the Energy Information Administration as secondary sources for assessing crude oil production and compliance with the DoC.

The next JMMC meeting is scheduled for April 5, 2025.


Oil Updates — prices gain as Trump tariffs stoke supply worries

Oil Updates — prices gain as Trump tariffs stoke supply worries
Updated 03 February 2025
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Oil Updates — prices gain as Trump tariffs stoke supply worries

Oil Updates — prices gain as Trump tariffs stoke supply worries

LONDON: Oil prices rose on Monday after US President Donald Trump imposed tariffs on Canada, Mexico and China, raising fears of supply disruption, though gains were capped by concern over what could be an economically damaging trade war.

Brent crude futures rose $1.28, or 1.7 percent, to $76.95 a barrel by 3:32 p.m. Saudi time after touching a high of $77.34.

US West Texas Intermediate crude futures were up $1.89, or 2.6 percent, at $74.42 after touching their highest since Jan. 24 at $75.18.

Trump’s sweeping tariffs on goods from Mexico, Canada and China kicked off a trade war that could dent global growth and reignite inflation.

The tariffs, which will take effect on Feb. 4, include a 25 percent levy on most goods from Mexico and Canada, with a 10 percent tariff on energy imports from Canada and a 10 percent tariff on Chinese imports.

“The relatively soft stance on Canadian energy imports is likely rooted in caution,” Barclays analyst Amarpreet Singh said in a note.

“Tariffs on Canadian energy imports would likely be more disruptive for domestic energy markets than those on Mexican imports and might even be counterproductive to one of the president’s key objectives — lowering energy costs.”

Goldman Sachs analysts expect the tariffs to have limited near-term impact on global oil and gas prices.

Canada and Mexico are the top sources of US crude imports, together accounting for about a quarter of the oil US refiners process into fuels such as gasoline and heating oil, according to the US Department of Energy.

The tariffs will raise costs for the heavier crude grades that US refineries need for optimum production, industry sources said.

Gasoline pump prices in the US are certainly expected to rise with the loss of crude for refineries and the loss of imported products, said Mukesh Sahdev at Rystad Energy.

Trump has already warned that the tariffs could cause “short-term” pain for Americans.

US gasoline futures jumped 2.5 percent to $2.11 a gallon after touching the highest level since Jan. 16 at $2.162.

“It is clear that the tariffs will have a negative effect on the global economy, with physical markets set to get tighter in near term, pushing crude prices higher,” said Panmure Liberum analyst Ashley Kelty.

Investors will also be watching for news from an OPEC+ meeting on Monday, with expectations that the oil producer group will stick to its current plan of gradual increases to output.

Rystad’s Sahdev added that tariffs, if kept for long, have the potential to cause production losses in Canada and Mexico, which could help OPEC+ to unwind output curbs.


Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 

Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 
Updated 03 February 2025
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Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 

Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 
  • Petrochemical field is projected to record substantial growth of 74% in 2025
  • Healthcare division is anticipated to achieve a 23% rise in net profits, up from 11% in 2024

RIYADH: Saudi stock market profits are set to grow by 8 percent in 2025, with the petrochemical sector driving the increase, according to a new report by SNB Capital. 

Banking and healthcare are also expected to see big rises, with the industries benefiting from increased loan activity and expanded operations. 

If petrochemicals are excluded from the analysis — with energy giant Aramco dominating the market — the Saudi stock exchange would see a 14 percent growth in profits.

This broad-based growth across key sectors highlights the resilience and dynamism of the Saudi economy, setting the stage for heightened market activity and increased investor confidence. 

These favorable conditions have translated into a surge in initial public offerings, with strong demand from both institutional and retail investors driving significant gains in 2024.

The petrochemical field is projected to record substantial growth of 74 percent in 2025, driven by improved prices, additional production capacities, and a return to full operational activity following widespread maintenance closures in 2024. 

The healthcare division is anticipated to achieve a 23 percent rise in net profits, up from 11 percent in 2024, driven by a 20 percent revenue increase attributed to new expansions that help mitigate margin pressures. 

The cement sector is also poised for strong growth, supported by the acceleration of mega projects, while the car rental industry is expected to benefit from fleet expansion, operational efficiencies, and lower interest rates, though short-term rental margins could face some pressure. 

Strong expectations for IPO activity in 2025 have been bolstered by lower interest rates, accelerating economic activity, and attractive investor incentives, according to SNB Capital.

Macroeconomic sentiment remains favorable, with over 85 percent of managers forecasting at least three interest rate cuts in 2025, signaling a shift toward easier financial conditions. 

The report underlines a growing proportion of managers who view the market as undervalued relative to its fair worth, though a majority still consider it fairly valued at its peak. 

Oil prices are expected to stabilize in 2025, with most fund managers predicting a range between $70 and $79 per barrel. 

Optimism is rising across sectors such as tourism, banking, and construction, while cautious views persist for the energy and petrochemical industries as they continue to navigate challenges. 

The strong market activity witnessed in 2024 lays the foundation for the optimistic forecasts for 2025, as the momentum generated by increased IPOs, rising transaction values, and sectoral recovery is expected to carry forward into the coming year. 

The Tadawul All-Share Index recorded a sharp increase in IPOs in 2024, reversing a decline in the prior year. 

The number of IPOs rose to 14, up from eight in 2023, with total proceeds reaching SR14.2 billion, compared to SR11.9 billion the previous year. 

Institutional subscription coverage rates improved significantly, averaging 126 times in 2024 compared to 61 times in 2023, while retail subscription coverage increased to an average of 16 times from 11 times. 

Market activity surged in 2024, with the number of negotiated deals reaching approximately 3,500, compared to 918 in 2023 and 1,316 in 2022, according to SNB. 

Negotiated deals generally refer to transactions that are arranged through direct agreements between buyers and sellers rather than through open market auctions or bidding processes. 

In the context of the stock markets, it can imply block trades, private placements, or structured deals involving large volumes of shares or assets that require direct negotiation to determine terms such as price and volume. 

Although the average deal size declined to SR24 million from SR34.6 million in 2023, the total value of transactions climbed to SR84 billion, significantly higher than SR29.5 billion in 2023 and SR38.9 billion in 2022. 

Major offerings contributed to increased market liquidity and a higher proportion of free-floating shares. 

Among them, Saudi Aramco’s secondary offering in June stood out as the largest secondary issuance in the Middle East, Europe, and North Africa since 2000. 

The offering raised SR42 billion through the sale of 1.55 billion shares at SR27.25 per share, surpassing the scale of its 2019 IPO. 

Saudi Telecom Co. followed with a secondary offering in November, generating SR38.6 billion through the sale of 2 percent of its public shares, or approximately 100 million shares. 

Meanwhile, SAL Logistics Services completed an IPO valued at SR6 billion, with shares expected to be distributed to shareholders in early 2025 at an estimated value of SR7 billion.