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.”


Oil Updates — prices ease on rising US inventories, Libyan output

Oil Updates — prices ease on rising US inventories, Libyan output
Updated 15 sec ago
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Oil Updates — prices ease on rising US inventories, Libyan output

Oil Updates — prices ease on rising US inventories, Libyan output

SINGAPORE/TOKYO: Oil prices slid on Wednesday, giving up some of last session’s gains, as an increase in US crude stockpiles and easing worries over Libyan supplies weighed on prices, although the decline was limited by potential US tariffs on Canadian and Mexican imports.

Brent crude futures fell 18 cents, or 0.2 percent, to $77.31 a barrel by 8:48 a.m. Saudi time, while US crude futures declined 15 cents, or 0.2 percent, at $73.62 a barrel.

“While markets are tackling demand side pressures, easing backdrop on supply side is equally weighing over oil prices,” said Priyanka Sachdeva, senior market analyst at Phillip Nova in Singapore.

“Markets are under pressure with Trump’s plans to boost US oil production and await further clarity on Trump’s energy policies.”

US President Donald Trump began his term last week issuing several executive orders to ease the permitting of energy infrastructure and boost already record-high oil and gas output.

US crude oil and gasoline stocks rose last week, while distillate inventories fell, market sources said on Tuesday, citing American Petroleum Institute figures.

The Energy Information Administration, the statistical arm of the US Department of Energy, is due to release its weekly data at 6:30 p.m. Saudi time on Wednesday.

The resolution of supply concerns in Libya has also added to selling pressure, said Chiyoki Chen, chief analyst at Sunward Trading in Tokyo.

Those fears eased after the state-run National Oil Corp. said on Tuesday export activity was running normally after it held talks with protesters demanding a halt of loadings at one its main oil ports.

The White House said on Tuesday that President Trump still plans to issue 25 percent tariffs on Canada and Mexico on Saturday.

It remains unclear how any new tariffs could affect oil imports to the US from the countries. Canada supplied 3.9 million barrels per day of oil to the US in 2023, roughly half of overall imports for the year, while Mexico supplied 733,000 bpd, according to data from the EIA.

Saudi Arabia’s energy minister and several of his OPEC+ counterparts have held talks following Trump’s call for lower oil prices and ahead of a meeting next week of OPEC+ oil-producing countries, according to official statements and sources.

Oil benchmarks fell to multi-week lows early this week as news of surging interest in Chinese startup DeepSeek’s low-cost artificial intelligence model prompted concerns over energy demand to power data centers, rattling the overall energy sector, while weak economic data from China further soured the demand outlook.

Technology stocks regained ground on Tuesday, a day after the DeepSeek rattled markets. 


Saudi Arabia’s property market set for growth with billions in new projects

Saudi Arabia’s property market set for growth with billions in new projects
Updated 29 January 2025
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Saudi Arabia’s property market set for growth with billions in new projects

Saudi Arabia’s property market set for growth with billions in new projects
  • The largest PIF projects in the Kingdom are in the Asir region
  • At least 50 percent of the country’s tourism is expected be centered in Riyadh

RIYADH: The Saudi real estate landscape is poised for substantial growth, as industry leaders, policymakers, and investors gathered at the Real Estate Future Forum in Riyadh to unveil major developments in property investment and tourism.

Highlighting the Kingdom’s ambitious Vision 2030 objectives, Asir Gov. Prince Turki bin Talal revealed the Public Investment Fund is spearheading nine major projects in the region, with four already launched and five in progress. “The largest PIF projects in the Kingdom are in the Asir region,” the governor said, emphasizing the region’s pivotal role in Saudi Arabia’s evolving property market.

The governor highlighted the region’s growing hospitality sector, with between 6,000 and 8,000 approved hotel rooms currently available. 

He also announced that Abha’s World Cup bid had been officially recognized as the best in the Kingdom by the Ministry of Sports. 

Meanwhile, Al-Ahsa Gov. Prince Saud bin Talal unveiled plans to expand the region’s hospitality offerings. “Our pipeline includes over seven or eight hotels and more than 25 rural lodges, including three five-star hotels: Hilton, Radisson Blu, and Hilton Garden Inn,” he said. Saudi Tourism Minister Ahmed Al-Khateeb noted the rapid expansion of the Kingdom’s hospitality industry, with hotel room capacity expected to grow from 475,000 to 675,000 by 2030. Al-Khateeb also discussed the impact of major infrastructure projects, such as the King Salman International Airport expansion and the launch of Riyadh Air, which are central to the Kingdom’s hyper-tourism strategy. 

He forecast that at least 50 percent of the country’s tourism will be centered in Riyadh, but emphasized efforts to keep the capital’s share from exceeding 80-90 percent. In the financial sector, Mohammed El-Kuwaiz, chairman of the Capital Market Authority, discussed the increasing role of real estate in the Kingdom’s investment market. 

“Around 20 percent of the 55 initial public offerings currently under review involve real estate companies,” he revealed. 

El-Kuwaiz emphasized the importance of financial stability and transparency for companies looking to list, advising them to treat investors as partners. 

In a significant move, he also announced that listed companies owning properties in Makkah and Madinah can now welcome foreign investors immediately.


SAMA permits full public launch of STC Bank in digitalization push

SAMA permits full public launch of STC Bank in digitalization push
Updated 28 January 2025
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SAMA permits full public launch of STC Bank in digitalization push

SAMA permits full public launch of STC Bank in digitalization push

RIYADH: The Saudi Central Bank, also known as SAMA, has authorized STC Bank to launch its full operations in Saudi Arabia.

As the first licensed digital bank in the Kingdom, STC Bank’s approval marks a significant step in SAMA’s ongoing strategy to accelerate digital transformation and enhance competitiveness in the banking sector.

At the same time, the move ensures the safeguarding of financial stability, according to a press statement from the central bank.

This milestone underscores the growing dynamism and potential of Saudi Arabia’s digital economy, while also highlighting SAMA’s efforts to create a regulatory framework that fosters innovation within the financial sector.

“SAMA is committed to strengthening the resilience of the banking sector, boosting its appeal, and increasing its role in achieving Saudi Vision 2030 and the Kingdom’s broader national objectives. This includes empowering entrepreneurs and financial institutions to deliver innovative financial services to the Saudi market,” the central bank said.

The approval follows a significant step taken in April 2024, when SAMA formally approved the transition of STC Pay — the mobile financial services arm of Saudi Telecom Co. — to STC Bank. Following a nine-month beta launch, STC Bank is now poised to begin its full banking operations.

Additionally, in December 2024, SAMA also gave the green light to D360 Bank, another digital financial institution, allowing it to begin its operations in the Kingdom.


Al-Habtoor Group halts investment plans in Lebanon amid growing instability

Al-Habtoor Group halts investment plans in Lebanon amid growing instability
Updated 28 January 2025
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Al-Habtoor Group halts investment plans in Lebanon amid growing instability

Al-Habtoor Group halts investment plans in Lebanon amid growing instability

DUBAI: UAE-based business conglomerate Al-Habtoor Group has abandoned its plans to reenter the Lebanese market, citing ongoing “unrest and instability” caused by armed militias.

In a statement issued on Tuesday, Khalaf Al-Habtoor, chairman of the group, explained that recent developments had deeply shaken his optimism.

“My team and I had been diligently preparing to launch new projects and expand existing investments in Lebanon, encouraged by promising signs such as the election of Gen. Joseph Aoun as president and the nomination of Nawaf Salam as prime minister. Both individuals embody integrity, credibility, and respect, instilling renewed hope among the Lebanese people — and investors like myself — for the country’s future,” the statement read.

However, he said that the continued dominance of armed militias, particularly what he described as “Shiite militias”, and the “absence of rule of law” have made it impossible for investors to proceed with confidence.

Tensions escalated with Hezbollah supporters holding rallies in Beirut, including in Christian-majority neighborhoods, further raising sectarian divisions. The protests followed the return of Shiite residents to southern Lebanon after a ceasefire between Israel and Hezbollah was recently extended.

In his statement, Al-Habtoor lamented the lack of decisive action from Lebanese authorities, including the army and the Ministry of Defense, in addressing these disturbances, noting that the situation was only worsening.

Unless the new government takes a firm stance against those working to destabilize the country, hopes for a “new Lebanon” will remain unfulfilled, he said.

Al-Habtoor clarified that the decision to pull out was made after careful analysis and close monitoring of the situation. As a result, neither he, his family, nor any group managers would be traveling to Lebanon.

Earlier this month, and following the wave of optimism that followed the election of President Aoun and Prime Minister Nawaf Salam, Al-Habtoor told Arab News in an interview that his group intended to move forward with plans to reopen its five-story mall in Beirut and relaunch the Habtoorland amusement park in Jamhour, contingent on Lebanon’s government delivering the promised security and stability measures.

The group, a multibillion-dollar global conglomerate, has diverse interests spanning luxury hotels, shopping malls, and more. As of January last year, its investments in Lebanon were estimated at around $1 billion.


Experts predict suburban boom, smarter housing designs in Saudi Arabia

Experts predict suburban boom, smarter housing designs in Saudi Arabia
Updated 28 January 2025
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Experts predict suburban boom, smarter housing designs in Saudi Arabia

Experts predict suburban boom, smarter housing designs in Saudi Arabia

RIYADH: The rise of community living and the increased accessibility of suburbs, driven by advancements in transportation, are transforming real estate trends in Saudi Arabia, experts say.

At the Real Estate Future Forum in Riyadh on Jan. 28, Khaled Elsehamy, chief development officer for real estate at the National Housing Co., highlighted the significant shift in the Kingdom's real estate sector. According to Elsehamy, more people are now viewing suburban areas as attractive living options.

During a panel discussion, Elsehamy also noted a growing preference among Saudi residents for smaller housing units, moving away from the traditional multigenerational homes.

“Suburbs are becoming increasingly appealing,” Elsehamy said. “People now find areas outside the central cities more attractive due to their convenience, accessibility, and proximity to essential services. They can easily connect with the city whenever they wish.”

He continued: “The rising costs of utilities, furniture, and maintenance have led people to seek smaller, more efficient homes. There is a growing demand for durable, modular designs that offer long-term savings while meeting modern needs.”

Elsehamy’s remarks came just a day after NHC CEO Mohammad Al-Buty announced that lower interest rates in 2025 will help the company surpass its 2024 sales targets. This aligns with NHC’s broader ambition to become the leading real estate developer in the region and stay at the forefront of the industry.

Elsehamy also discussed the shifting mindset of Saudi homebuyers, noting a stark contrast to traditional purchasing habits. “In the past, people bought homes for their children and grandchildren. That’s no longer the case,” he explained.

“Today, people are looking for homes that fit different life stages. They think, ‘I’ll live in this house now, move to a bigger one later, and eventually downsize to a smaller place by the beach in 20 years.’”

The NHC official emphasized that community living is driving new trends in Saudi Arabia’s housing market. “Community living allows residents to interact more with those around them, and it often includes amenities like community centers where people can work, especially those with remote work options.”

Echoing these sentiments, Andrew Baum, emeritus professor at Oxford, also spoke during the panel, highlighting how modern homebuyers prioritize accessibility over location.

“Previously, location was everything in real estate,” said Baum. “But today, accessibility has become the key factor. The new metro in Riyadh is set to significantly impact property values, opening up newly accessible areas.”

Oussama Kabbani, group chief Development officer at ROSHN, emphasized that Saudi Arabia’s real estate sector has reached a global standard post-Vision 2030. Reflecting on ROSHN’s approach to enhancing community living standards, Kabbani explained that understanding customer needs is central to their success.

“It all comes down to data and actively listening to your customers,” he said. “We conduct numerous surveys online and engage directly with residents to understand what’s missing. We focus a lot on creating activities for children, with educational and cultural events to keep them engaged.”

He continued: “We also place a strong emphasis on sports. It's not complicated — you don’t need to spend a fortune to make people happy. The key is knowing what makes them happy and delivering it with quality.”

Kabbani also noted the growing sophistication of the community real estate sector. He predicted that investments in senior living spaces, alongside data centers and healthcare facilities, would soon become more prominent.

“Our communities are designed with schools, community centers, playgrounds, and more,” Kabbani added. “When people choose to live in our communities, they’re not just buying a home — they’re buying a lifestyle. And we’re committed to ensuring that lifestyle is truly lived.”

During the session, Nasser Al-Kadi, chief investment officer at Awqaf Investment, praised the recent regulatory reforms in Saudi Arabia’s real estate sector, noting their positive impact on the market.

He emphasized the importance of embracing technological advancements to further modernize the sector. “The regulatory changes in Saudi Arabia have not only attracted external capital but also increased transparency within the industry,” Al-Kadi said.

He continued: “Technology isn’t just a tool for optimization — it’s a driver of growth and innovation. We haven’t yet seen the full potential of these technologies in the Kingdom’s real estate sector.”

Robert J. Di Franco, chief development officer at Roaya Co., also highlighted the growing influence of technology, stating that innovation is fundamentally reshaping every aspect of the real estate industry.

“Innovation and technology are shaping everything we do — from pre-acquisition phases to market analysis, accessing real-time transactional data, to how we manage construction projects and facility handovers. Technology is now integrated into every part of our process,” Di Franco said.