International Women’s Day: Women’s economic inclusion holds promise of a prosperous Arab region

Reforms are taking place across a range of gender equalityrelated issues, closely linked to women’s economic empowerment. (AFP)
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Updated 08 March 2022
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International Women’s Day: Women’s economic inclusion holds promise of a prosperous Arab region

  • Sweeping legal reforms, initiatives and programs are making way for more opportunities for women
  • McKinsey estimates that $12 trillion could be added to global GDP just by empowering more women

DUBAI: In a region where the female labor force participation rate is the lowest globally, countries are working to change the narrative around women’s economic empowerment.

Over the last two decades, significant progress has been made in most regional countries to advance gender equality and empower women and girls. 

Such advancements, chiefly led by national women machineries in the Arab region, are also anchored in government commitments to promote gender equality.

Over the past few years, reforms have taken place across a range of gender equality-related issues, with several legal and policy frameworks considered as closely linked to and mutually reinforcing women’s economic empowerment. 

Saudi Arabia and the UAE have emerged as the region’s top contenders in this effort, while other countries in the region are closely following suit.




Saudi Arabia and the UAE have emerged as the region’s top contenders in this area, while other countries in the region are following suit. (AFP)

“Eliminating violence against women is a prerequisite to women’s economic empowerment,” said Dr. Mehrinaz El-Awady, head of the Gender Justice, Population and Inclusive Development Cluster, which houses the UN Economic and Social Commission for Western Asia Centre for Women (ESCWA). 

“Laws on sexual harassment in the workplace, labor laws, including equal wages and specific restrictions and care policies, are crucial to women’s economic empowerment.”

In Lebanon, a law was passed to criminalize sexual harassment in December 2020. ESCWA, the UN Population Fund, the Ministry of Labor and the National Commission for Lebanese Women are also now working together to operationalize the new sexual harassment law to create safer workplaces.

Egypt followed suit in 2021, with the ratification of penal law to confront sexual harassment, while provisions related to flexible work arrangements mainly target female workers. 

“This reinforces the assumption that care work is the primary responsibility of women,” El-Awady told Arab News. “Jordan presents a good practice in the field of flexible work regulations whereby these regulations cover both female and male workers.”

INNUMBERS

* 33% - In 2020, women made up 33% of the labor force in Saudi Arabia.

(Source: General Authority for Statistics)

Yet more representation of women at the top of firms, in senior leadership roles, and especially within emerging enterprises is needed, according to Tamara Dabbas, chief revenue officer at GrubTech, which helps kitchens in 17 countries serve millions of meals. 

Only 30 percent of Egyptian businesses are led by women, with visibility and opportunity posing a significant challenge. “Nothing changes when people don’t see the issue,” Dabbas said. “The more visible women business leaders become, the more the entire landscape changes.”

Egypt ranked 134 out of 153 countries in the Global Gender Gap Index in 2020, while statistics show that 33 percent of women in the country’s workforce are vulnerable to unemployment.

Industries with high rates of female employees, such as medicine and service industries, are also those where considerable personal risk is involved, such as exposure to COVID-19. 

“There is a lot of work to be done there,” said Mariam Azmy, chief human resources officer at a construction company, ASGC. “But where there is great need, there is also great opportunity. I am encouraged to see how NGOs, communities and the government are working together to turn things around.

“It’s also heartening to see that Egypt is making progress to implement the 2030 Sustainable Development Strategy, with women as an integral part of the reform plan.”




A Qatari woman casts her vote at a polling station to elect members for the Shura Council in the first legislative elections in Doha, Qatar in October, 2021. (Anadolu via Getty Images)

Only 9 percent of Arab women have started their own business, as opposed to 19 percent of Arab men, and the pandemic has only exacerbated social and financial inequalities, disproportionately impacting women. 

“Women are also concentrated in the sectors that were most hit by the crisis,” El-Awady said. “COVID-19 created an additional layer of complexity, particularly that gender equality was not mainstreamed across the response plans to the pandemic in the countries of the region.”

She called for further initiatives to promote gender equality, including flexible work arrangements. Egypt has done much work on that front, announcing special protections and exceptional leave for pregnant women and mothers of children under 12 in March 2020. 

“It is important to maintain and sustain such measures,” she added. “These are perhaps among the very few positive outcomes of the crisis and are important for the process of building back better.”

Chiara Marcati, a partner at McKinsey & Company, said businesses greatly benefit from gender diversity in leadership positions, with more diversity going hand in hand with higher organizational effectiveness. 

She added that McKinsey research has identified several kinds of leadership behavior that correlate strongly with organizational effectiveness. “It’s our duty to set an example for the next generation of women — our daughters, nieces and friends — and ensure there is a path to success.”

For Mariam Farag, founder of Humanizing Brands, through which she helps businesses and media implement global strategies and values for sustainable, diverse and inclusive operations, governmental reforms are needed, and brands must step up to serve the communities they profit from. 




From L-R: Mariam Azmy, Mariam Farag and Tamara Dabbas. (Supplied)

“Individuals must also train themselves to focus on and work toward a profitable outcome, even before they can see it around them,” she told Arab News.

Serious legislative work is required in Iraq, Jordan and Lebanon, according to Rima Mrad, a lawyer at BSA Law in Dubai, to improve the position of women, whether in terms of their fundamental rights in the workforce or in their personal lives.

In the workforce, she spoke of a need to revisit labor laws to accommodate the challenges faced by women, such as maternity and harassment. 

“This is a right that women should be able to exercise, and the more reduced maternity you have, the more restrictions you’re putting on women, either to improve or invest in their career, or invest in their family life,” she said. 

“Women are always expected to sacrifice versus men when it comes to their careers and their professional life. We rarely see this on the agendas of governments and legislators.”

Social unrest in Lebanon and Iraq adds another layer of complexity, as priorities are placed elsewhere. As a result, Mrad does not expect much change in such countries, although she mentioned the many changes in Egypt over the past few years. 

“They’re aggressively working to update their laws and regulations,” she said. “Egypt has a promising outlook in terms of introducing and implementing regulations because, to a large extent, they’re recognizing these issues and we’re seeing more attention being given to women’s issues.

“Women’s economic participation is not a women’s issue; it is a society issue.”

INNUMBERS

* 18% - Arab region has world’s lowest female labor force participation.

(Source: ILO World Employment and Social Outlook 2019)

With women representing half of the world’s population, their economic empowerment is considered a right that is vital not only for gender equality, but also for human capital building and countries’ prosperity. “It is at the heart of advancing national growth and gross domestic product,” El-Awady said.

Azmy said the region cannot afford to lose out on the economic advantage of a fully empowered female workforce, with all women deserving the opportunity to pursue a career of their choice, be empowered and live a fruitful life. 

“Beyond that, all populations collectively deserve to experience the additional wealth and influence generated by a balanced contribution of female intelligence and perspective,” she added.

McKinsey estimates that $12 trillion could be added to global GDP just by empowering more women. Farag believes the MENA region deserves a fair share of that amount. “Our women are the key,” she said.

“We exist. We are human. We deserve empowerment. So let’s start there, with what’s morally just and right. Women are already driving the global GDP — if the nations of our region do not tap effectively and completely into their female talent, they will literally fall behind.”


Saudi Arabia closes $2.5 billion Shariah-compliant credit facility for budget financing

Updated 02 January 2025
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Saudi Arabia closes $2.5 billion Shariah-compliant credit facility for budget financing

RIYADH: The National Debt Management Center has announced the successful arrangement of a Shariah-compliant revolving credit facility valued at SR9.4 billion ($2.5 billion).

This three-year facility is intended to support the Kingdom’s general budgetary requirements and was secured with the participation of three regional and international financial institutions.

This credit arrangement is in line with Saudi Arabia’s medium-term public debt strategy. It aims to diversify funding sources to meet financing needs at competitive terms, while adhering to robust risk management frameworks and the approved annual borrowing plan.

In November, Saudi Arabia approved its state budget for the fiscal year 2025, with projected revenues of SR1.18 trillion and expenditures totaling SR1.28 trillion, resulting in a deficit of SR101 billion.

The Finance Ministry forecasts a robust 4.6 percent growth in the Kingdom's real gross domestic product for 2025, a significant increase from the 0.8 percent growth expected in 2024. This growth is anticipated to be driven by a rise in activities within the non-oil sector, according to the ministry’s statement.

Saudi Arabia’s total debt is projected to reach SR1.3 trillion in 2025, or 29.9 percent of GDP, which is considered a sustainable level to meet the country’s financing needs.

Revised projections for the 2024 budget indicate a deficit of SR115 billion, with total debt expected to rise to SR1.2 trillion, or 29.3 percent of GDP.

The 2025 budget places a strong emphasis on maintaining essential services for citizens and residents while increasing investment in key projects and sectors. The government's focus remains on preserving fiscal stability, ensuring long-term sustainability, and managing reserves effectively. By maintaining manageable debt levels, Saudi Arabia aims to safeguard its resilience against unforeseen economic challenges.


Closing Bell: Saudi Arabia’s TASI closes in green at 12,103

Updated 02 January 2025
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Closing Bell: Saudi Arabia’s TASI closes in green at 12,103

  • MSCI Tadawul Index also increased by 2.55 points, or 0.17%, to close at 1,517.16
  • Parallel market Nomu gained 11.83 points, or 0.04%, to close at 31,005.69 points

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Thursday’s trading session at 12,102.55 points, marking an increase of 25.24 points, or 0.21 percent. 

The total trading turnover of the benchmark index was SR5.55 billion ($1.47 billion), as 99 of the listed stocks advanced, while 131 retreated. 

The MSCI Tadawul Index also increased by 2.55 points, or 0.17 percent, to close at 1,517.16. 

The Kingdom’s parallel market Nomu reported increases, gaining 11.83 points, or 0.04 percent, to close at 31,005.69 points. This comes as 39 of the listed stocks advanced while as many as 43 retreated. 

The index’s top performer, Tihama Advertising and Public Relations Co., saw a 9.91 percent increase in its share price to close at SR16.86.  

Other top performers included Zamil Industrial Investment Co., which saw an 8.01 percent increase to reach SR35.05, while Al Yamamah Steel Industries Co.’s share price rose by 5.42 percent to SR36. 

AYYAN Investment Co. also recorded a positive trajectory, with share prices rising 4.99 percent to reach SR16. Fawaz Abdulaziz Alhokair Co. witnessed positive gains, with 4.49 percent reaching SR14.44. 

Arabian Cement Co. was TASI’s weakest performer, with its share price falling 5.81 percent to SR14.88. 

Riyadh Cement Co. followed with a 5.45 percent drop to SR30.35. Yamama Cement Co. also saw a notable decline of 5.26 percent to settle at SR33.35.  

Umm Al-Qura Cement Co. dropped 3.55 percent to SR17.94, while Methanol Chemicals Co. declined 3.03 percent to SR17.94, ranking among the top five decliners. 

In the parallel market Nomu, View United Real Estate Development Co. was the top gainer, with its share price surging by 22.64 percent to SR9.10. 

Other top gainers in the parallel market included Mulkia Investment Co., up 8.25 percent to SR40, and Enma AlRawabi Co., rising 6.67 percent to SR23.68. 

Naas Petrol Factory Co. and Meyar Co. were the other top gainers on the parallel market. 

Al-Modawat Specialized Medical Co. saw the largest decline on Nomu, with its share price slipping 8.05 percent to SR16. 

Naseej for Technology Co. fell 7.14 percent to SR65, while Saudi Azm for Communication and Information Technology Co. dropped 6.18 percent to SR28.10, ranking among the notable decliners on Nomu. 

On the announcement front, Al-Jouf Agricultural Development Co. said it has entered into a SR200 million Shariah-compliant bank facilities agreement with Banque Saudi Fransi to finance the company’s expansion plans and operational activities. 

Its share price closed at SR64.50, reflecting a 1.2 percent gain. 

Saudi Basic Industries Corp., or SABIC, announced that its Saudi affiliates have received official notification of increased feedstock prices, which is expected to affect the company’s production costs. 

SABIC’s shares closed at SR67.30, marking a decline of 0.59 percent. 

Sahara International Petrochemical Co., also known as Sipchem, received a notice from Saudi Aramco amending certain feedstock prices, effective Jan. 1. The financial impact is expected to result in a 2 percent increase in the total cost of sales, starting in the first quarter of the 2025 fiscal year. 

Sipchem’s shares ended the day at SR24.66, down 2.43 percent. 

National Agricultural Development Co., or NADEC, received a notification regarding an adjustment in fuel prices for its operational activities. The financial impact is estimated to result in a 1.5 percent increase in operating costs, to be reflected starting in the first quarter of fiscal year 2025. 

This change is expected to moderately raise production costs. NADEC’s shares closed at SR24.52, marking a 1.55 percent increase. 


Saudi Arabia’s Ministry of National Guard achieves 100% localization of maintenance contracts

Updated 02 January 2025
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Saudi Arabia’s Ministry of National Guard achieves 100% localization of maintenance contracts

  • The milestone was celebrated at a signing ceremony for new localization contracts
  • Key accomplishments celebrated at the event included the development of a strategic implementation plan for sustainability localization

RIYADH: Saudi Arabia’s Ministry of National Guard has increased local spending on maintenance, repairs, and operations for its ground systems from 1.6 percent to 100 percent over the past four years.

The milestone was celebrated at a signing ceremony for new localization contracts under the patronage of the Minister of National Guard, Prince Abdullah bin Bandar, with the participation of the General Authority for Military Industries. 

The initiative is part of a broader effort to achieve sustainable development within the Kingdom’s military industries, enhance local capabilities, and support Vision 2030 goals. 

The ministry has signed a series of contracts with local companies to improve the sustainability and efficiency of military systems. These agreements aim to strengthen military readiness, contribute to economic growth, and create job opportunities within Saudi Arabia.

These pacts include a sustainability contract for integrated weapons systems and heavy weaponry with SAMI Defense Systems Co., an electronic systems sustainment agreement with SAMI Advanced Electronics Co., and a vehicle sustainability deal with Alkhorayef Industries Co. 

In conjunction with these contracts, GAMI announced signing two industrial participation deals to enhance local content and build national industrial capabilities. 

The first agreement, signed with SAMI Defense Systems Co., focuses on the sustainability of integrated weapons and heavy weaponry, aiming to achieve over 60 percent industrial participation and create new employment opportunities for Saudi professionals. 

The second contract, signed with Alkhorayef Industries Co., pertains to the sustainability of military vehicles and aims to encourage investment in qualified industrial activities to strengthen the defense sector. 

The ministry highlighted the economic benefits of the localization program, including creating over 800 direct jobs and empowering national companies to take a central role in the Kingdom’s defense ecosystem. 

Key accomplishments celebrated at the event included the development of a strategic implementation plan for sustainability localization, the establishment of innovation laboratories for spare parts manufacturing, and progress in achieving over 60 percent industrial participation in contracts. 

These initiatives also contribute to enhancing local capabilities and fostering innovation within the Kingdom’s defense sector. 

The event was attended by several high-ranking officials, including Minister of Industry and Mineral Resources Bandar Alkhorayef, GAMI Governor Ahmed Al-Ohali, Governor of the General Authority for Defense Development Faleh Al-Suleiman, and President of the General Authority for Civil Aviation Abdulaziz Al-Duailej. 

Senior representatives from the companies awarded the contracts. Military and civilian officials from the Ministry of National Guard were also present. 


SRC and Hassana launch mortgage-backed securities to boost Saudi real estate investment

Updated 02 January 2025
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SRC and Hassana launch mortgage-backed securities to boost Saudi real estate investment

  • Deal seeks to diversify Kingdom’s financial markets by introducing an innovative asset class
  • Saudi banks’ mortgage lending hit a near three-year high of $2.7 billion in November

RIYADH: The region’s first-of-its-kind residential mortgage-backed securities will be available in Saudi Arabia as the Kingdom seeks to enhance liquidity and expand investment opportunities in the real estate finance sector. 

A memorandum of understanding, signed between the Saudi Real Estate Refinance Co., a subsidiary of the Public Investment Fund, and Hassana Investment Co., seeks to diversify Saudi Arabia’s financial markets by introducing an innovative asset class. 

The issuance of mortgage-backed securities is anticipated to attract a wide base of local and global investors to the secondary mortgage market, creating new opportunities for investment in the sector. 

Majeed Al-Abduljabbar, CEO of SRC, said: “Our partnership with Hassana marks a significant milestone in supporting the evolution of the housing finance landscape and fostering the development of Saudi Arabia’s capital markets.” 

He added: “Together, we aim to introduce innovative financial solutions that deliver value to both investors and citizens while aligning with Vision 2030’s objectives.” 

The deal, signed in the presence of Majid Al-Hogail, minister of municipalities and housing, and Mohammed Al-Jadaan, minister of finance, aligns with the Housing Program and Financial Sector Development Program under Vision 2030. 

“This collaboration establishes a new standard for partnerships, enabling the development of scalable financial solutions that contribute to the Kingdom’s economic development goals. It aligns with Hassana’s strategy of diversifying its investment portfolios through long-term partnerships with entities like SRC,” said Saad Al-Fadhli, CEO of Hassana. 

Hassana’s participation as a key institutional investor underscores the potential to create sustainable economic investment opportunities. 

This comes as the Kingdom’s real estate market continues to show strong demand, with annual growth in residential sales transaction volumes across major metropolitan areas. 

Saudi banks’ mortgage lending hit a near three-year high of SR10.06 billion ($2.7 billion) in November, marking a 51.23 percent year-on-year increase and the highest monthly amount in over two years, according to data from the Kingdom’s central bank.

This surge reflects strong activity in the housing market, with houses accounting for 65 percent of the loans, followed by apartments at 31 percent and land purchases at 4 percent. 

As part of its Vision 2030 agenda, the Kingdom is fast-tracking residential construction, particularly in Riyadh, to accommodate its growing population and attract international talent.


Qatar’s foreign merchandise trade surplus slips 5%

Updated 02 January 2025
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Qatar’s foreign merchandise trade surplus slips 5%

  • Total exports in the third quarter of 2024 — including domestic goods and re-exports — were valued at 87.8 billion riyals
  • Value of imports during the same period amounted to 30.1 billion riyals

RIYADH: Qatar recorded a foreign merchandise trade balance surplus of 57.7 billion Qatari riyals ($15.8 billion) in the third quarter of 2024, down 5 percent year on year, new data revealed.

Merchandise trade balance surplus is the difference between total exports and imports.

According to figures released by the Gulf nation’s Planning and Statistics Authority, the country’s total exports in the third quarter of 2024 — including domestic goods and re-exports — were valued at 87.8 billion riyals. This represents a 2.2 percent decline compared to the same period in 2023.

The value of Qatar’s imports during the same period amounted to 30.1 billion riyals, up 4.1 percent compared to the same quarter in 2023.

The figures fall in with the nation’s trajectory to restore government revenues to pre-2014 oil price shock levels and double its economy by 2031, according to an analysis by Standard Chartered in August.

The data also reflects the steady growth of Qatar’s non-oil economy, contributing to two-thirds of the country’s gross domestic product.

Exports breakdown

The figures further disclosed that the drop in exports is mainly attributed to lower exports of mineral fuels, lubricants, and related materials by 5 billion riyals, or 6.5 percent, and miscellaneous manufactured articles by 100 million riyals, or 22 percent.

Increases were mainly recorded in chemicals and related products by 1.5 billion riyals, or 24.5 percent, machinery and transport equipment by 1.2 billion riyals, or 53.3 percent, and manufactured goods classified chiefly by material by 400 billion riyals, or 17.1 percent.

Exports of crude materials, inedible, except fuels, also witnessed a rise of 100 million, or 24.8 percent.

Imports breakdown

The rise in import values is mainly linked to increases in machinery and transport equipment by 800 million riyals, or 6.7 percent, chemicals and related products by 400 million riyals, or 17.2 percent, and mineral fuels, lubricants and related materials by 320 million riyals, or 58.2 percent.

Imports of food and live animals also jumped by 300 million riyals or 9.8 percent.

Meanwhile, decreases were recorded mainly in miscellaneous manufactured articles by 400 million, or 6.7 percent as well as manufactured goods classified chiefly by material by 300 million, or 7.7 percent.

Principal destinations

The PSA data showed that Asia was the principal destination of exports for the country, representing 75.9 percent, as well as the primary origin of Qatar’s imports, accounting for 39.7 percent.

The Gulf Cooperation Council followed, accounting for 11.6 percent of exports and 11.3 percent of imports, respectively.

The EU came next, with 7.7 percent of exports and 26 percent of imports.