Saudi women seize new business opportunities

Wafaa Al-Ashwali launched Serviis, an app that connects consumers with over 2,500 service providers across the Kingdom. (Supplied image)
Updated 01 November 2017
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Saudi women seize new business opportunities

LONDON: With a 130 percent increase in the number of women employed by the private sector in Saudi Arabia over the past four years, the Kingdom’s workforce is undergoing a transformation aimed at ushering in a new economic era.
When Wafaa Al-Ashwali launched a startup in Saudi Arabia earlier this year, she tapped into a burgeoning community of established female entrepreneurs.
Stepping into a sphere traditionally reserved for men, she has had to work harder and be more enterprising than male counterparts, but five months later her app Serviis, which connects consumers with more than 2,500 service providers across the Kingdom, has a steady client base of more than 700.
Her success speaks for the business opportunities unfolding for women in KSA, where there has been a 130 percent increase in their number in the private sector during the past four years.
“There has been a push from government to empower more female entrepreneurs,” Al-Ashwali said.
Almost 40 percent of the startups launched in 2016 were owned by women — an indication of the social and economic evolution that is underway as the Kingdom pursues ambitious aims outlined in its Vision 2030.
Speaking to Arab News earlier this month, the governor of the General Authority for Small and Medium Enterprises, Ghassan Al-Sulaiman pinpointed startups as a particular focus for development.
With plans to boost the proportion of women in the workforce to 30 percent by 2030, Saudi Arabia’s once-sidelined female population is being harnessed to facilitate this growth.
At a recent job fair attended by 43,000 women and hosted by Saudi women’s recruitment agency Glowork, more than 86 local and international organizations gathered seeking to source female talent for their KSA operations.
“They were there purely to hire Saudi women and it showed the appetite of the organizations to get women into their industries at all levels,” said Khalid Al-Khudair, founder of Glowork, itself a startup.
Previously, companies in Saudi Arabia hired women to fill compulsory quotas. Now, Al-Khudair said, “it has become something that makes business sense for organizations,” with women taking on a greater number of roles across different sectors.
“Saudi females represent a talented, well-educated pool of labor. Today, more Saudi women than men are attaining university degrees,” said David Hunt, founder of Dubai-based company Lynwood Consulting.
“The educational reforms have produced a new generation of women with a high degree of training, education and knowledge who are assuming their rightful place in society.”
Across the Middle East, women outnumber men in universities but countries are largely failing to utilize their female talent pools with women’s participation in the workforce across the region among the lowest in the world, according to Reuters.
The upshot is a failure to fully reap the so-called “demographic dividend” that would fuel economic growth, as well as a drag on programs aimed at empowering women in order to fulfil the economic agenda set by government.
Currently, just 1.9 million of the 13.1 million women in Saudi Arabia participate in the workforce, giving it the largest gender imbalance in labor force participation among G-20 countries, according to the “G-20 Saudi Arabia Labour Market Report 2016.”
New initiatives aim to redress this imbalance such as the launch of the first all-female business process services center in Riyadh by Saudi Aramco, General Electric and Tata Consultancy Services to provide employment for more than 1,000 women and the first all-women business and technology park, which aims to provide employment for 20,000 women over the next decade.
“Saudi Arabia has already invested heavily in education for women,” said Jane Kinninmont, deputy head of the Middle East and North Africa program at Chatham House in London.
“Enabling more women to enter the workforce allows the economy to earn a return on that investment,” she added.
“Having women in business is good for diversity and there is significant research being done internationally on the positive impact of gender diversity on management and innovation.”
Doors are opening these days with more women entering the workforce, and the once male-dominated business environment is becoming a more equal place.
Hunt noticed the change during a recent trip to Riyadh. “I visited the operations of one of the leading insurance companies,” he said. “In the past women would have been working behind closed doors in separate sections with separate lifts. Now men and women work side by side in large open-plan spaces.
“It was also pleasing to see women taking on more senior roles,” he added, pointing to the appointment of several women to high-powered positions in KSA.
Rania Nashar became the first woman to head a commercial bank in the Kingdom earlier this year when she was named chief executive of Samba Financial Group. Latifa Al-Sabhan serves as the chief financial officer of Arab National Bank, while in February Sarah Al-Suhaimi, CEO of NCB Capital, became the first woman to chair the Saudi stock exchange.
Opportunities are also opening up lower down the ladder as Saudi women seize the moment in the wake of the latest round of reforms.
“The policy environment is becoming more favorable to women working — the recent decision (to lift the ban) on women driving is an important symbol of that,” Kinninmont said.
An earlier move that means women no longer need a guardian to access government services has helped to lift the number of women establishing SMEs, she added.
However, hurdles remain, particularly when it comes to networking. “Saudi Arabia is a conservative country and we still have segregation between men and women,” said Al-Ashwali.
“Business development, which relies on being there in person to access funds and engage with the business community, is a challenge.” Male entrepreneurs can attend the meetings and events necessary to build a business but for women, it is still a “closed community,” she said.
But the balance is shifting as economic demands compete with cultural practices that traditionally consigned women to the domestic sphere.
“I’ve been visiting Saudi Arabia for more than a decade, and throughout that period young middle-class Saudis have been telling me that their peers aspire to have families where both the man and the woman work, partly because of the rising cost of living,” Kinninmont said.
Nouf Al-Saleem, founder of Mathaqi, a meal delivery app launched last year, spoke of the social development that has taken place with women “more welcome in the market, especially when it come to supporting productive families.”
“We can see women-owned businesses rising in all areas, including the food and retail industries and many others,” she added.
Al-Ashwali is confident of further progress. “I think we’ll see more reforms. What’s needed next is to remove the barrier for capable women who have what it takes to do business but are held back by a male guardian.
“Many government organizations are working hard to support individuals in starting their own business,” she said, adding that seeing women empowered by recent reforms “will encourage and inspire more to pursue their business ambitions.”


Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister

Updated 3 sec ago
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Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister

  • Kingdom has embarked on a transformation of traditionally industrial cities into modern smart cities, Bandar Alkhorayef tells World Economic Forum
  • Nation’s businesses are increasingly adopting new technologies to help enhance productivity, he adds

DAVOS: Saudi Arabia is becoming a regional hub for testing the use of new technologies as efforts to diversify the national economy continue, the minister of industry and mineral resources, Bandar Alkhorayef, told the World Economic Forum in Davos on Thursday.

The Kingdom has established national organizations such as the Saudi Data and AI Authority and the Future Factories Program to regulate and help businesses adopt new technologies that utilize artificial intelligence, machine learning, 3D printing and robotics, he added.

This smart infrastructure market is projected to be worth $2 trillion within the next 10 years, up from an estimated $900 billion in 2024, driven by growth in the integration of physical and digital industrial operations.

Alkhorayef said Saudi Arabia places a priority on manufacturing and has embraced the use of the latest technologies in sectors such as renewable energy and electric vehicles, as the Kingdom embarks on ambitious plans to transform traditionally industrial cities into modern smart cities.

“The investors coming to these cities (will find) a ‘plug-and-play’ kind of support,” he said, as authorities take steps to attract businesses and global talent to work and invest, and to establish the country as a regional hub for technological research, development and innovation.

The Kingdom’s Future Factories Program, for example, aims to provide training initiatives and loans to help 4,000 factories adopt new technologies, embrace automation and improve manufacturing efficiency.

“We’re very bold when it comes to testing new ideas and technologies,” Alkhorayef added, which makes it “interesting for new players to see (Saudi Arabia) as a place where they can not only seek financing or investment but also a place to test and pilot certain ideas.”

Such endeavors are endorsed by some of the country’s biggest corporations, including the chemical manufacturing company SABIC, the petroleum company Aramco, and the mining giant Maaden. Aramco, for example, has already adopted new technologies, including AI, to enhance productivity and reduce carbon dioxide emissions.

Alkhorayef was speaking during a WEF discussion titled “Next-Gen Industrial Infrastructure.” The other panelists included representatives of the African Union Commission, businesses and consulting firms.

Currently, up to 50 percent of Saudi Arabia’s deep-tech startups are focused on the development of AI or the Internet of Things, Alkhorayef said, as the country increasingly adopts digitalization in the public and private sectors.

The Saudi Data and AI Authority, established in 2019 to regulate and promote the national agenda for a data-driven economy, has said that AI is making significant contributions to operational efficiency. In 2023, global spending on AI exceeded $120 billion, with more than 72 percent of organizations incorporating the technology into at least one business area.

“We believe that adopting technology in the mining sector will lead to safer, more productive and energy-efficient mines,” Alkhorayef said by way of an example, adding that it is essential that authorities consider environmental protection as they seek to strike the right balance between the interests of investors and the local community.

“Making digitalization accessible is an important part of what we do (in the Kingdom),” he said. “It involves regulation, cybersecurity, human capital training, and investing in incubators to work and learn.

“In every sector, such as food, energy or mining, (we always ask) the question of how technology could be helpful.”


Saudi economic success being driven by ‘key North Star, not egos,’ says finance minister at WEF

Updated 38 min 18 sec ago
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Saudi economic success being driven by ‘key North Star, not egos,’ says finance minister at WEF

  • Mohammed Al-Jadaan highlights Kingdom’s shift from short-term budgets to longer-term fiscal planning, ensuring clear priorities and disciplined spending
  • Transformation driven by clear decisions and significant investments led to strong economic performance, adds economic planning chief Faisal Al-Ibrahim

DAVOS: Saudi Finance Minister Mohammed Al-Jadaan on Thursday said that the Kingdom’s economic planners were being driven by their “North Star” and not egos as they look to maintain growth in the economy.

Speaking on a panel about the Saudi economy at the annual meeting of the World Economic Forum, Al-Jadaan highlighted Saudi Arabia’s shift from short-term budgets to longer-term fiscal planning, ensuring clear priorities and disciplined spending.

He said that there was flexibility and a readiness within the government to adapt plans based on global circumstances. “I’ve said this repeatedly, we don’t have egos. We are willing to change depending on circumstances and we will continue to do that. We will prioritize what matters,” he said.

“Our key North Star is what is driving us, and the tools can change, the means can change. It’s really that North Star that we are looking forward to,” he said.

He emphasized the progress and resilience of Saudi Arabia’s economy under Vision 2030, noting that the plan had mobilized the entire nation — government, businesses, right down to citizens — toward clear, long-term goals.

He attributed this success to visionary leadership, tough decision-making and consistent execution, adding that this approach could be a universal “recipe” for unlocking global potential.

On the Saudi-US relationship, Al-Jadaan highlighted its strategic importance over the past eight decades, emphasizing that Saudi Arabia had maintained strong economic, diplomatic and security ties with Washington, regardless of the administration in power, whether Republican or Democrat.

He described the partnership as a “win-win situation” that remained vital and was likely to endure into the foreseeable future.

Al-Jadaan was joined on the panel by Saudi Minister of Economy and Planning Faisal Al-Ibrahim, who attributed the Kingdom’s strong economic performance to a first wave of transformation driven by clear, courageous decisions and significant investments, not only financially but also in terms of effort and planning.

Looking ahead, Al-Ibrahim stressed that the next phase of Vision 2030 would focus on addressing more complex challenges, particularly in enabling the private sector.

He emphasized the goal of increasing the private sector’s contribution to 65 percent of GDP by fostering collaboration, co-developing opportunities and creating an environment where private enterprises could take the lead in driving economic growth.

Key priorities include enhancing institutional capabilities, ensuring policy clarity and predictability, and addressing barriers to innovation-driven entrepreneurship, he said.

Al-Ibrahim also underlined the government’s commitment to working closely with the private sector, noting that ministers and their teams often worked long hours to respond to and engage with private enterprises. This collaborative approach, he said, was deeply embedded in the country’s Vision 2030 blueprint for economic transformation.

IMF Chief Kristalina Georgieva, who was also on the panel, praised Saudi Arabia’s transformation efforts, highlighting the country’s ability to create an appealing environment for business and tourism.

She commended its forward-thinking approach in engaging the private sector to diversify experiences and attract repeat visitors. Referring to her visit to AlUla, she said: “I didn’t know what to expect, but I came out thinking it was great we decided to open our regional office in Riyadh.”

Georgieva also noted Saudi Arabia’s strategic planning to host global events and foster economic growth. She described the country as a “good example of transformation” that others could look to for inspiration in creating dynamic, sustainable growth through proactive planning and investment.
 


Lebanon’s inflation rate drops to 45% in 2024, marking a return to double-digit figures

Updated 23 January 2025
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Lebanon’s inflation rate drops to 45% in 2024, marking a return to double-digit figures

  • Monthly inflation also increased by 2.38% in December, marking the third consecutive monthly rise
  • Key contributors included miscellaneous goods and services, which rose 39.69% annually

RIYADH: Lebanon’s economic landscape showed signs of stabilization in 2024, with inflation rates returning to double-digit levels after three years of hyperinflation that had exceeded 200 percent.

The annual inflation rate stood at 45.24 percent last year, a substantial drop from the staggering 221.3 percent recorded in 2023, according to data from the Central Administration of Statistics.

Lebanon has endured prolonged economic instability, with the Lebanese lira losing 90 percent of its value since the crisis began in 2019. The drop in inflation aligns with the International Monetary Fund’s October forecast, which projected inflation in the Middle East and North Africa region to ease to 3.3 percent in 2024.

Last year represented a period of relative calm in terms of price volatility. Monthly inflation indices revealed a deceleration in price growth. The index for December reached 30,936.02, compared to 30,147.41 in November, showing a modest increase compared to the unpredictable fluctuations of prior years.

The slowdown in inflation is largely due to the stabilization of the Lebanese lira, driven by Banque du Liban’s monetary policies since 2023. By the spring of last year, the exchange rate had settled at around 89,500 Lebanese liras per dollar, following a sharp rise from 40,000 to 140,000 earlier in 2023.

This stability helped bring annual inflation below 100 percent in April, reaching 18.1 percent by December, though the same month’s inflation rose slightly from November’s 15.38 percent.

Monthly inflation also increased by 2.38 percent in December, marking the third consecutive monthly rise, following 2.02 percent in October and 2.30 percent in November. 

Key contributors to inflation in December included miscellaneous goods and services, which rose 39.69 percent annually, education fees at 31.27 percent, and health care at 22.93 percent. Only communications and furniture saw price declines at 2.99 percent and 1.99 percent, respectively.

Lebanon’s state-owned telecom firm, Ogero, said it is working to restore and expand its connectivity. The firm’s Chairman and Director General Imad Kreidieh announced in a live broadcast on Jan. 21 that the company’s expansion plans will resume, supported by funding from multiple donors.

North Lebanon recorded the highest monthly increase in December at 3.79 percent, followed by Beirut and Nabatieh at 3.59 percent, and South Lebanon at 2.97 percent.

The drop in inflation offers some relief to the Lebanese people, but with the election of former army commander Joseph Aoun as president on Jan. 9 and the appointment of the Chief Judge of the International Court of Justice, Nawaf Salam, as prime minister on Jan. 13, the need for comprehensive reform remains urgent.

The political breakthrough has also sparked a rally in Lebanon’s government bonds, which have nearly tripled in value since September. The election of Aoun, following 12 failed attempts to choose a president, has raised hopes that Lebanon might finally address its economic challenges. 

Most of the country’s international bonds, in default since 2020, rallied further after Aoun’s election, rising by nearly 0.9 cents on the dollar to around 16 cents — a modest recovery that underscores investor optimism despite Lebanon’s ongoing struggles.


Saudi Arabia’s Kingdom Holding terminates $1.8bn fund deal with Sumou, JEC

Updated 23 January 2025
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Saudi Arabia’s Kingdom Holding terminates $1.8bn fund deal with Sumou, JEC

JEDDAH: Saudi-based conglomerate Kingdom Holding Co. has confirmed the termination of its SR6.8 billion ($1.8 billion) fund agreement with Sumou Holding Co. and Jeddah Economic Co., following a mutual decision by all parties.

In a filing with the Tadawul stock exchange, KHC said the move, effective Jan. 23, imposes no obligations on any party, adding that this decision was reached as the primary purpose of the fund is no longer applicable.

Progress continues on the fund’s main asset, Jeddah Tower, with the Saudi Binladin Group reinstated and work resuming at an accelerated pace. Technical and consulting teams are now in place and have commenced on-site operations.

The release added that the Alinma Jeddah Economic City Fund, fully owned by JEC – an associate firm – remains operational, saying that KHC continues to support the project’s development.

In July, the three firms signed an agreement to establish a new fund to acquire the Alinma Jeddah Economic Fund, whose investors would include the three companies, with KHC owning 40 percent of the new fund.

In a Tadawul announcement, KHC said last year that the financial impact of the agreement would be disclosed once JEC completed updating its accounting records.

The latest announcement said the concrete was poured for the 64th floor of the tower in the presence of the partners, headed by Prince Alwaleed bin Talal, KHC’s chairman of the board of directors.

It added that the partners were giving their utmost attention and oversight to this global symbol, which aligns with Saudi Vision 2030.

Jeddah Economic City aims to showcase its pioneering ambitions through the Jeddah Tower, envisioned as a new wonder of the world and a symbol of Jeddah’s renaissance. The tower also reflects the city’s rich commercial heritage spanning thousands of years, according to the company’s website.

Set to stand over 1 km. tall, the tower will be the centerpiece of the Jeddah Tower Waterfront District.


Qatar strengthens fiscal position with $245m budget surplus in Q4 

Updated 23 January 2025
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Qatar strengthens fiscal position with $245m budget surplus in Q4 

RIYADH: Qatar recorded a budget surplus of 900 million Qatari riyals ($245.6 million) in the fourth quarter of 2024, up from 100 million riyals in the previous quarter. 

The Ministry of Finance stated on its X account that the surplus will be used to reduce public debt. It added that total expenditures for the quarter stood at 47.8 billion riyals, a 12 percent year-on-year decline, while revenues totaled 48.7 billion riyals, reflecting a 12.5 percent drop. 

The health, municipal and environment, general secretariat, and energy sectors ranked as the top-performing areas during the quarter, according to the Sector Performance Index.  

Qatar’s fiscal performance aligns with other Gulf Cooperation Council nations, such as Oman, which recorded a 6.2 percent budget surplus in 2024. This reflects the International Monetary Fund’s December review, which highlighted the region’s resilience amid oil production cuts, supported by diversification efforts and economic reforms. 

“For the second consecutive year, and in line with Qatar’s continued dedication to developing health and education, allocations for the two sectors have increased, with both amounting to 20 percent of the total new budget,” the ministry said. 

Government tenders and auctions during the quarter were valued at 6.4 billion riyals, while contracts with local companies totaled 4.8 billion riyals, a 36.8 percent decline compared to the same period in 2023. 

The 2024 state budget prioritized significant investments in healthcare, with 11 percent of total expenditures allocated to the sector. Key projects include the development of the National Cancer Hospital, a specialized psychiatric hospital, and upgrades to existing healthcare facilities. 

In the third quarter of 2024, Qatar’s budget surplus declined by 97.4 percent compared to the second quarter. Total revenues for that period were 51.3 billion riyals, driven by oil and gas revenues of 42.3 billion riyals, which fell 25.4 percent year on year due to fluctuating market conditions. 

Non-oil revenues, however, showed strong growth, rising 76.8 percent year on year from a lower base. 

Expenditures totaled 51.2 billion riyals in the third quarter, a 2.8 percent increase compared to the same quarter in 2023, with notable spending on salaries, wages, and minor capital expenditures. 

The government prioritized debt reduction during the period, in line with its fiscal strategy. Public debt stood at 332.4 billion riyals, equivalent to 38.6 percent of nominal gross domestic product.