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.”

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* 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.”


25 companies compete for six Saudi sports clubs in privatization push, says minister

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25 companies compete for six Saudi sports clubs in privatization push, says minister

RIYADH: Saudi Arabia’s ongoing sports privatization initiative has sparked significant interest from both local and international investors. A total of 25 companies are now actively pursuing investment opportunities in six of the 14 sports clubs proposed for privatization in the first phase.

During the Saudi Arabia Budget 2025 Conference, Sports Minister Prince Abdulaziz bin Turki Al-Faisal discussed the economic potential of the privatization drive, estimating that these investments could amount to SR500 million ($133 million).

“There is also interest from foreign companies in investing and acquiring local sports clubs, which we will announce soon,” the minister said.

Prince Abdulaziz noted that the Saudi Pro League’s international profile is on the rise, with broadcasts now reaching over 160 countries. Revenues from the league have increased by 33 percent this year, reflecting growing participation and interest in the Kingdom’s sports sector.

The expansion of sports is part of Saudi Arabia’s broader Vision 2030 reforms, which seek to diversify the country’s economy. To facilitate investment in the sector, the privatization process has been streamlined with the launch of a platform that licenses academies and clubs, making it easier for individuals and businesses to invest.

“In 2018, no one was allowed to establish a club except through the hassle of regulatory processes. Now, through the platform, anyone can open their club or academy and invest easily in the sector,” he explained.

Saudi Arabia has also made notable progress in sports tourism, hosting around 80 sports events over the past four years, attracting 2.5 million visitors. Major events such as the Formula One race in Jeddah have brought substantial economic benefits. The 2023 edition, for instance, generated over 20,000 job opportunities and attracted attendees from 160 different countries.

The minister further highlighted improvements in sports sector administration, including a reduction in contract termination penalties among clubs from SR616 million to SR30 million last year. He also pointed to the shift from part-time or voluntary staffing to a full-time workforce of 5,000 employees, with a target of creating 130,000 direct and indirect jobs by 2030.

In another session at the conference, Saudi Tourism Minister Ahmed Al-Khateeb shared that tourism’s contribution to the Kingdom’s gross domestic product had increased from 3 percent in 2018 to 5 percent in 2023, with a target of 10 percent by 2030.

“In the recent G20 meeting in Brazil, they presented the tourism growth of the nations in the first seven months of this year compared to the same period in 2019. Saudi Arabia was the highest with 70 percent, followed by Turkiye with 5 percent — a huge growth gap between the first and the second,” Al-Khateeb remarked.

Domestic travel in Saudi Arabia has also seen a surge, with the average number of flights per Saudi citizen or resident rising from 1.4 in 2018 to 2.5 in 2023. This compares favorably with leading global tourism destinations such as France (3.5) and Spain (2.8).

Saudi Arabia’s focus on cultural, sports, and historical events has positioned the Kingdom to capture a share of the 1.6 billion travelers expected to grow to 3.8 billion by 2032. Al-Khateeb emphasized that Vision 2030 initiatives have been central to this growth, driving both job creation and economic diversification.

In a separate panel, Ibrahim Al-Mubarak, assistant minister of Investment, highlighted the role of monetary policies in fostering sustainability and building trust with investors.

“There is no other spot in the world that has seen the transformation witnessed in the Kingdom at such an unprecedented speed since the launch of Vision 2030,” Al-Mubarak said.

He also praised the upcoming launch of a new investment system, set to replace the current foreign investment system in early 2025. This new framework aims to offer equal support to both domestic and international investors, consolidating investor rights and freedoms into a more transparent and business-friendly environment.

Al-Mubarak further celebrated the Kingdom’s success in the regional headquarters program, which has already surpassed its Vision 2030 target of attracting 500 regional headquarters by 2030.

“We are now hosting 540 companies by 2024,” he added, emphasizing Saudi Arabia’s growing position as a regional business hub.


Prince Sultan International Airport drives Tabuk’s growth with 25% surge in flights

Updated 27 November 2024
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Prince Sultan International Airport drives Tabuk’s growth with 25% surge in flights

JEDDAH: Prince Sultan International Airport in Tabuk is playing a key role in Saudi Arabia’s transportation expansion, with a 25 percent increase in flight operations.

This surge highlights the region’s alignment with Vision 2030, focusing on enhanced logistics, connectivity, and sustainability.

During a recent visit to the region, Saudi Minister of Transport and Logistics Services Saleh Al-Jasser affirmed that Tabuk is experiencing substantial growth, which supports the broader objectives of the National Transport and Logistics Strategy.

The minister emphasized that the rise in airport operations  — including both the number of flights and the diversity of domestic and international routes — signals further development in the coming years.

Launched in 2021, Saudi Arabia’s transport and logistics strategy aims to transform the country into a global logistics hub connecting three continents.

The strategy seeks to elevate all transport services and is a central element of Vision 2030. The plan includes an investment of over $266.7 billion by 2030, with $53.3 billion already deployed.

Al-Jasser also highlighted the region’s advanced road infrastructure, built to international standards, which is designed to accommodate the growing population and economic activity while ensuring safety and efficiency for travelers.

Noting the significant progress in Tabuk’s transport sector, the minister expressed his gratitude to the Kingdom’s leadership for its ongoing commitment to improving services across all sectors, particularly in transportation.

He emphasized that these initiatives not only address current demands but are also geared towards future goals, particularly in enhancing supply chain efficiency and supporting both domestic and international logistics networks.

The minister further underscored the importance of environmental sustainability in transportation, advocating for eco-friendly solutions and the integration of cutting-edge technologies into transport operations.

Al-Jasser also acknowledged the leadership of Tabuk Gov. Prince Fahd bin Sultan, praising his steadfast support for the region’s development projects and his role in enhancing transport services for residents and visitors alike.

He commended the strong partnership between regional authorities and the Ministry of Transport, which has been instrumental in achieving shared goals.

During his visit, the minister held discussions with members of the Tabuk Chamber of Commerce, exploring opportunities for further collaboration with the private sector to advance the goals of the NTLS. He also met with local residents to hear their insights, suggestions, and priorities regarding the region’s transport and logistics infrastructure.


Moody’s upgrades 6 Saudi GRIs to Aa3, citing strong sovereign support

Updated 27 November 2024
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Moody’s upgrades 6 Saudi GRIs to Aa3, citing strong sovereign support

RIYADH: Moody’s has upgraded the ratings of six major government-related institutions in Saudi Arabia, including the Public Investment Fund, to Aa3 from A1.

The move reflects strong sovereign backing and stable credit linkages to the government. 

The agency also assigned the Aa3 rating to Saudi Aramco, Saudi Basic Industries Corp., and Saudi Electricity Co., as well as Saudi Power Procurement Co., and Saudi Telecom Co. 

Moody’s assigns an Aa3 rating to companies with high quality, low credit risk, and strong ability to repay short-term debts, providing an assessment of the creditworthiness of borrowers, including governments, corporations, and other entities that issue debt. 

“The rating action is a direct consequence of the sovereign rating action and reflects the credit linkages between the Government of Saudi Arabia and each of the six entities,” said Moody’s. 

It added: “While several of these corporates benefit to varying degrees from international assets and cash flows, they all have significant credit linkages to the Saudi Arabia sovereign and are exposed to the domestic environment including political, economic, regulatory and social factors.” 

The strong ratings received by these firms is an indication of Saudi Arabia’s robust economic stability, following Moody’s upgrade of the Kingdom’s credit rating to Aa3 with a stable outlook in November. 

In May, Fitch Ratings upgraded Saudi Arabia’s credit rating to A+ with a stable outlook. 

PIF

File/AFP

The upgrade of PIF’s long-term issuer rating to Aa3 from A1 aligns with the Saudi government’s rating action and reflects the strong credit linkage between the sovereign wealth fund and the Kingdom, according to Moody’s. 

The report also noted that PIF is expected to receive strong and extraordinary support from the Saudi government whenever needed. 

“PIF is closely interlinked with the Kingdom because it is one of the main vehicles of the Kingdom to execute its Vision 2030; PIF continues to receive contributions from the Kingdom via asset transfers; and given the fund’s investment focus and concentration in domestic markets,” added the US-based agency. 

According to the analysis, PIF’s rating is in line with that of the Saudi government, meaning the fund’s rating could be downgraded if the sovereign rating declines. 

In July, PIF’s consolidated financial statement revealed that the fund generated SR331 billion ($88.3 billion) in revenue in 2023 from its diverse investment portfolio, reflecting over 100 percent growth compared to 2022. 

Saudi Aramco

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The report indicated that Aramco’s rating upgrade reflects the high likelihood of extraordinary support from the government if needed. 

The US-based agency also noted that the energy company has access to nearly all of Saudi Arabia’s vast hydrocarbon resources and significant petrochemical operations. 

Earlier in November, Aramco reported a net profit of SR103.37 billion for the third quarter of 2024, surpassing analyst expectations, which had projected a median net income of SR101.06 billion. 

SABIC

File/AFP

According to Moody’s, SABIC’s rating upgrade is due to its strong reliance on the government and the high probability of receiving government support in the event of financial distress. 

The report also highlighted the company’s strong global position in the petrochemical and fertilizer markets as another key factor behind the credit rating upgrade. 

In the third quarter of this year, SABIC reported a net profit of SR1 billion, a turnaround from the net loss of SR2.87 billion in the same period last year. 

SEC 

Describing SEC as the “dominant vertically integrated electricity utility in Saudi Arabia,” Moody’s stated that the company served over 11.23 million customers as of Sept. 30, 2024. 

“SEC’s rating reflects the significant credit linkages between SEC and its ultimate shareholder, the Government of Saudi Arabia. All of SEC’s assets are in Saudi Arabia and the company benefits from supportive government policies,” said the US-based agency. 

In the third quarter of this year, SEC reported a net profit of SR4.7 billion, a 19.8 percent increase compared to the same period last year. 

SPPC

Moody’s stated that SPPC has a clear public policy mandate that aligns its interests and objectives with those of the government. 

As the sole licensed principal buyer of electricity in Saudi Arabia, the company has significant credit linkages with the government, which played a crucial role in the latest rating action. 

Moody’s also noted that the rating reflects SPPC’s low business risk profile, its monopoly position in the Kingdom, and its ability to maintain a strong liquidity profile despite high working capital seasonality. 

stc

According to the report, the rating upgrade of stc – the leading integrated telecommunications and ICT operator in Saudi Arabia – reflects the company’s strategic importance to the government, as well as the state’s high level of control through PIF. 

Moody’s added that stc generates over 90 percent of its revenue in the Kingdom and plays a key role in supporting the government’s technological and digital ambitions, a crucial goal outlined in Vision 2030. 

Affirming stc’s dominance in the Saudi market, the company reported a net profit of SR11.23 billion in the first nine months of this year, a 2 percent increase compared to the same period in 2023.


Eyewa raises $100m in Series C to boost expansion across GCC

Updated 27 November 2024
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Eyewa raises $100m in Series C to boost expansion across GCC

RIYADH: Eyewa, a Riyadh-based eyewear retailer, secured $100 million in a series C funding round led by General Atlantic, with participation from Badwa Capital and Turmeric Capital. 

The funding will fuel eyewa’s ambitions to expand its regional footprint, enhance its supply chain, and drive innovation in the eyewear sector. 

The company plans to open at least 100 new stores in 2025, adding to its existing network of over 150 locations across the Gulf Cooperation Council region, including Saudi Arabia, the UAE, Kuwait, Bahrain, and Oman. 

“We are proud of and feel even more emboldened by the remarkable trust placed in us by top global and regional investors,” said Anass Boumediene, co-founder and co-CEO of eyewa.  

“In a sector that had not seen much disruption in the past decade, our success in this funding round reflects not only the strength of our business model, but also the spirit of innovation across the region’s startups as we continue to dream big and break new ground in our respective industries,” he added. 

The capital will also support investments in research and development and talent acquisition as eyewa strengthens its position as a leader in the eyewear market, the company said in a press release. 

As part of its growth strategy, eyewa plans to establish a “state-of-the-art” production hub in Riyadh in the first quarter of 2025. 

The facility will include a warehouse, a fulfillment center, and a lens manufacturing unit, designed to improve the efficiency and speed of product delivery. 

Owned and operated by eyewa, the center will provide a supply chain advantage that aligns with the company’s goal of delivering affordable and accessible eyewear to customers across the region. 

Co-founder and co-CEO Mehdi Oudghiri emphasized the company’s customer-centric approach: “This accomplishment is a testament to the hard work of our team, our strong track record as an omnichannel retailer, and our commitment to challenging convention.” 

“The additional capital will allow us to pursue the development of innovative products tailored to our customers, and continue pushing the boundaries of customer experience in our region,” Oudghiri added. 

Based in both Riyadh and Dubai, eyewa was founded in 2017 and has grown into a prominent omnichannel retailer, combining e-commerce with physical stores to cater to rising consumer demand. The company also runs The Optical Club, a brand focused on providing accessible and affordable eyewear options. 

“As part of our mission to make eyewear accessible to everyone, everywhere, we will leverage the support of our new partners and continue our retail expansion to all corners of the GCC,” said Abdullah Al-Rugaib, co-founder and managing director of eyewa. 

He added that their extensive network and premier app, along with a tech-enabled supply chain, make eyewa the preferred retail platform for customers across the region. 

Ziyad Baeshen, vice president at General Atlantic and a board member at eyewa, said: “The company’s impressive growth trajectory thus far is a testament to the vision of the leadership team and consumer appetite for authentic, direct-to-consumer brands in the Middle East.” 

Additional investor support came from Badwa Capital and Turmeric Capital, both of whom lauded eyewa’s leadership and vision.  

“Since first investing in eyewa, we have been impressed by the team’s clear vision and strong execution capabilities,” said Abdulaziz Al-Falih, partner at Badwa and board member at eyewa.  

Fabio Andreottola, partner at Turmeric Capital, added: “eyewa represents the very essence of innovation and ambition in the Middle East’s retail landscape. As a business that has continually pushed boundaries in eyewear, we are proud to support eyewa’s team in this pivotal growth phase.” 


Saudi Arabia, Djibouti ink deal to protect mutual investments

Updated 27 November 2024
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Saudi Arabia, Djibouti ink deal to protect mutual investments

RIYADH: Investments between Saudi Arabia and Djibouti will see new protection measures thanks to an agreement between the two countries.

The deal, which was inked on the sidelines of the second day of the 28th World Investment Conference taking place in Riyadh from Nov. 25 — 27, aims to provide many advantages to investors.

These include investment protection, national treatment, and fair and equitable treatment, as well as transparency, and the right to resolve disputes through national courts or international arbitration, according to the Saudi Press Agency.

The agreement aims to provide a safe business environment that increases the volume of mutual investments in all sectors. It also seeks to further encourage bilateral relations and economic partnerships between the two sides.

This falls in line with the significant progress in bilateral trade, which reached approximately SR7 billion ($1.86 billion) in 2023, marking an important step toward sustainable growth and stronger economic ties between the Kingdom and Djibouti. 

The deal was signed by the Kingdom’s Minister of Investment, Khalid Al-Falih, and by the Minister of State for Investments and Private Sector Development in Djibouti, Safia Ali Jadila.

The two sides stressed the importance of the deal’s role in supporting and motivating both countries’ private and government sectors to invest and achieve the ambitious investment programs witnessed by the two nations.

Earlier this month, logistical, trade, and investment ties between the two countries were further strengthened during the sixth session of their joint committee, held in Riyadh on Nov. 18. The meeting was chaired by Saudi Minister of Transport and Logistic Services Saleh Al-Jasser and Djibouti’s Minister for Foreign Affairs Mahamoud Ali Youssouf. 

In his opening remarks during the event, Al-Jasser highlighted the deep-rooted ties between the two nations, noting that the discussions were just the beginning of efforts to enhance trade and investment, particularly in logistics. 

In August, the two nations launched a maritime initiative to strengthen trade ties, including the establishment of new shipping lines to boost connectivity with East African markets, which serve a consumer base of around 500 million people. 

These ongoing efforts between Saudi Arabia and Djibouti are set to significantly enhance bilateral trade, investment, and regional connectivity, marking a promising new chapter in their economic partnership.