Saudi Arabia keen to get more women in the workforce

Saudi Arabia is keen to get more women in the workforce, and the Kingdom has already surpassed its Vision 2030 ambition of achieving 30 percent female participation in the labor market. (SPA)
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Updated 06 July 2024
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Saudi Arabia keen to get more women in the workforce

  • Saudi women in tourism and hospitality sectors underline power of workforce diversity, experts explain

RIYADH: Tourism and hospitality in Saudi Arabia are experiencing a remarkable transformation driven by the increased participation of women, thanks to inspirational leaders and strong government action.

This shift is significant considering that tourism is one of the few global industries where women already constitute the majority of the workforce.

Saudi Arabia is keen to get more women in the workforce, and the Kingdom has already surpassed its Vision 2030 ambition of achieving 30 percent female participation in the labor market.

Indeed, the goal has now been upscaled to 40 percent — double the rate seen in 2010, according to World Bank figures.

Tourism and hospitality is seen as a sector where women can thrive, and the Kingdom is working hard to create more opportunities in this area.

According to EHL Insights, just five years ago, Saudi females faced significant barriers when it came to working in hospitality companies, and women had to go to great lengths to convince their families to allow them to pursue education or employment opportunities in this industry.

This has changed thanks to the economic and cultural shifts spearheaded by the Vision 2030 initiative, and according to data issued by R Consultancy Group in March, 45 percent of the sector’s workforce now comprises female professionals – 925,000 workers.

“There are several inspirational female leaders that have helped to strategically shape both the Saudi tourism sector and the regional tourism sector more broadly such as Princess Haifa bint Mohammed Al-Saud, vice minister of tourism, and Basmah Al-Mayman, regional director of the UN World Tourism Organization,” Anne-Laure Malauzat, partner at Bain & Co. in the Middle East, told Arab News.

She  went on to stress that on the ground in Saudi Arabia, there is a massive presence of women across different parts of the tourism and hospitality sectors, from the architects designing the Kingdom’s key airports, passport control officers, and cab drivers as well as hospitality leaders and tourist guides.

“Examples of these success stories include Sarah Gasim, senior vice president — head of KSA Hotels and Hospitality at JLL — who managed hotel complexes in the past. (She) is a published author and lectured on hospitality, helping to shape future generations in the sector,” Malauzat said.

From Red Sea Global’s point of view, spokesperson Zainab Hamidaddin Al-Hanoof Al-Hazzani told Arab News that women bring unique perspectives, skills, and insights to roles such as hospitality management, customer service, marketing, and event planning, which significantly enhance the overall quality of service and customer satisfaction. 




Tourism and hospitality is seen as a sector where women can thrive, and the Kingdom is working hard to create more opportunities in this area. (SPA)

“Their diverse perspectives, enhanced service delivery, and inclusive workplace contributions are driving innovation and economic growth, making them indispensable to its success,” she said.

Al-Hazzani claimed that women are actively shaping the future of the tourism and hospitality industry in Saudi Arabia, adding: “This is particularly true at RSG where women play a pivotal role in elevating guest experiences, fostering cultural diversity, and contributing to the overarching success of our projects.

For example, our Elite Graduate Program has provided employment opportunities for 250 individuals, with 30 women advancing to management positions.” 

Opportunities and challenges for women in the tourism and hospitality sector 

The tourism and hospitality sector in Saudi Arabia is undergoing a significant transformation, with a growing focus on cultural tourism, luxury experiences, and heritage preservation which presents a wealth of opportunities for women.

Laila Kuznezov, director, Implementation Practice at management consulting firm Oliver Wyman told Arab News that from leadership roles in hotel management to careers in event planning, cultural tourism experiences, and hospitality education, women can leverage their “unique skills and perspectives” to shape the future of Saudi tourism. 

“By empowering women in tourism and hospitality, they are not only creating a more inclusive workforce, but also sending a powerful message to the world. With a diverse pool of talent contributing to the industry, they can create a world-class visitor experience that reflects the Kingdom’s rich heritage, culture tapestry, and forward-thinking vision for the future,” Kuznezov added.

Speaking on the key constraints women face in entering the labor force and securing employment, Kuznezov shed light on how many of the barriers in Saudi Arabia are similar to those faced globally. 

By empowering women in tourism and hospitality, they are not only creating a more inclusive workforce, but also sending a powerful message to the world.

Laila Kuznezov, director, Implementation Practice at Oliver Wyman

“A gender wage gap persists, and women at certain education levels, particularly those with only a secondary school leaver’s certificate, have much lower participation rates than men. A huge opportunity lies in capitalizing on the highly skilled female workforce in Saudi Arabia,” she explained.

The director also noted that: “We need to see more women as CEOs, CFOs, and senior managers across all industries, particularly in highly productive sectors driven by technology and knowledge. Encouraging female entrepreneurship is also crucial. The talent and ambition are there – it’s about providing continued support and fostering a culture that actively supports and promotes women in transformative roles.”

She continued to clarify that the recent rise in female labor force participation is a positive indicator, but the next step is ensuring these women secure high-quality jobs that leverage their full capabilities.

“It is also important to support gains for women at all levels and geographic areas. A key focus in Saudi Arabia is ensuring access to the training and childcare options needed for success, especially for women who have been out of the workforce for long periods of time, are first-time job holders, or have lower education levels,” Kuznezov emphasized.

“Since Saudi women tend to stay closer to their hometowns, geographically dispersed training programs and readily available childcare are crucial to expanding regional employment opportunities,” the director further said.

According to Kuznezov, Saudi Arabia is embracing a progressive approach by developing and enabling regulations to promote new forms of work, such as freelancing, part-time work, platform and gig economy work, and remote working.

“These models offer women increased flexibility and more channels to enter and participate in the workforce, which should contribute to continuing the positive trends of increased participation and reduced unemployment for women,” she said.

Women participation’s impact on Vision 2030

Female participation in the tourism and hospitality sector has helped support the Vision 2030 agenda on multiple fronts, believes Bain & Co.’s Malauzat. 

“From a talent perspective, enabling the sector transformation through their leadership, skills, and contribution across all parts of the tourism and hospitality lifecycle,” she said. 

FASTFACT

In Saudi Arabia, there is a massive presence of women across different parts of the tourism and hospitality sectors, from the architects designing the Kingdom’s key airports, passport control officers, and cab drivers as well as hospitality leaders and tourist guides.

“From a consumer understanding perspective, women globally take an estimated 80 percent of consumer-related decisions so having women represented in the sector is critical to ensure a real understanding of consumers in this space,” the partner affirmed.

She concluded: “From a gender equity perspective, this has been an important contributing factor to helping the Kingdom achieve its overall aspirations for female participation in the labor market nationally.”

From RSG’s lens, according to Al-Hazzani, by actively promoting gender diversity in the workforce within the tourism and hospitality sector, the firm is taking significant strides towards realizing the vision outlined in Vision 2030.

“This initiative aligns seamlessly with the broader objective of cultivating a vibrant and inclusive economy that harnesses the full spectrum of talent and capabilities within the nation,” Al-Hazzani said.

“Recognized as a fundamental driver of economic diversification, the tourism and hospitality sector in particular benefits immensely from the integration of female talent. Their presence not only fuels the sector’s growth but also enhances its competitive edge and long-term viability through delivering an enriched tourism experience and driving innovation,” she added.

The spokesperson justified that by prioritizing gender diversity in the tourism and hospitality workforce, RSG is not only embracing Vision 2030’s ideals but also paving the way for other sectors to do the same.

“Our dedication to inclusivity not only strengthens our economy but also reaffirms our collective commitment of creating a more prosperous and equitable society,” Al-Hazzani concluded.


Oil Updates — crude steady as investors watch Trump 2.0 policies

Updated 11 sec ago
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Oil Updates — crude steady as investors watch Trump 2.0 policies

SINGAPORE: Oil prices were little changed on Wednesday as markets weighed US President Donald Trump’s declaration of a national energy emergency on his first day in office and its impact on supply.

Brent crude futures rose 9 cents to $79.38 per barrel at 7:20 a.m. Saudi time, while US West Texas Intermediate crude futures inched up 1 cent to $75.84.

The contracts settled lower on Tuesday after Trump laid out a sweeping plan to maximize oil and gas production, including by declaring a national energy emergency to speed permitting, rolling back environmental protections, and withdrawing the US from the Paris climate pact.

“Market participants are trying to digest the mixed signals that Trump 2.0 bring for the trajectory for oil prices,” said Yeap Jun Rong, market strategist at IG.

“Near-term focus will be on whether his aim to fill up the US strategic reserves materializes,” said Yeap, adding that attention is on his upcoming tariff policies.

Trump’s latest energy policy is unlikely to spur near-term investment or change US production growth, analysts at Morgan Stanley wrote in a note, adding that it could, however, moderate potential erosion of refined product demand.

Analysts also questioned if Trump’s promise to refill the strategic reserve would make any changes to oil demand as the Biden administration was already purchasing oil for the emergency stockpile.

Investors also remained cautious as Trump’s trade policy remained unclear. He said he was thinking of imposing 25 percent tariffs on imports from Canada and Mexico from Feb. 1, rather than on his first day in office as previously promised.

The US president also added that his administration would “probably” stop buying oil from Venezuela, among the top suppliers of oil to the country.

Meanwhile, a rare winter storm churned across the US Gulf Coast on Tuesday, and much of the US remained in a dangerous deep freeze.

North Dakota’s oil production was estimated to be down by between 130,000 and 160,000 barrels per day due to extreme cold weather and related operational challenges, the state’s pipeline authority said on Tuesday.

The impact of the storm on oil and gas operations remained limited in Texas, with minimum interruptions in gas flows, few power outages and plenty of gasoline inventories at the pump, as many roads and highways remained closed.


WEF panelists call for systemic policy shifts to help developing countries out of global debt crisis

Updated 43 min 52 sec ago
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WEF panelists call for systemic policy shifts to help developing countries out of global debt crisis

  • At World Economic Forum Annual Meeting in Davos, they urge governments and lenders to take shared actions to build strong, resilient economies and relieve debt burdens
  • Developing countries have accrued twice as much debt since 2010 compared with those in the developed world

DUBAI: The international community must devise ways to help nations in the developing world out of the global debt crisis and safeguard societies from the long-term effects of economic stagnation.

This was the message from a panel of experts during a discussion at the World Economic Forum Annual Meeting in Davos on Tuesday. Amid global transformations and ongoing uncertainty, they called for shifts in domestic and global monetary policies to provide relief for countries with debt burdens, and for governments and lenders to take shared actions to help build strong and resilient economies.

An International Monetary Fund report published in October stated that global pubic debt was expected to exceed $100 trillion during 2024, representing about 93 percent of global gross domestic product. Developing countries have accrued twice as much debt since 2010 compared with those in the developed world, according to UN figures..

The COVID-19 pandemic, climate change and unprecedented hikes in interest rates have compounded this debt crisis in some countries, potentially jeopardizing the futures of generations to come and slowing global progress.

Rebeca Grynspan, the secretary-general of UN Trade and Development, called for change at a systemic level to help countries take proactive steps to avoid debt problems in an ever-changing world.

“The developing world has half the debt that developed world has, the problem is paying for it,” she said.

“Firstly, we should avoid a liquidity problem becoming a debt problem. We have instruments that we don’t use in the international system, like special drawing rights.

“Secondly, the developing countries need long-term loans. If you go for infrastructure, you really want to grow, you need long-term money.”

For a monumental shift to take place, multilateral development banks need to scale up, take risks and crowd in private investment, Grynspan added.

About 3.3 billion people live in countries that spend more servicing debt than they do on education or health, according to a report published by the UN in July 2023.

“Markets are not in crisis but people are,” said Grynspan. “We don’t have a debt fault, but we have a development fault and that in turn will come to hunt us because if you cannot have growth in these countries, then we will not be able to get onto a sustainable path.”

Andre Esteves, chairperson and senior partner of Brazilian financial company Banco BTG Pactual, warned that a trade war between US and China during Donald Trump’s second term as president might affect other countries. However, he also highlighted positive indicators among the policies of the new administration in Washington.

“The whole idea of more fiscal discipline, ranging from deregulation and private-sector growth,” he said by way of examples. “But there needs to be the core of regulatory framework, otherwise it would be a bad move.”

As the debt crisis fuels power imbalances, dominance is expected to skew toward China, said Simon Freakley, the chairperson and CEO at global consulting firm AlixPartners.

“In today’s world, where developing countries are struggling to pay back their debt, they need to borrow more,” he noted, adding that China is able to exert significant influence as its capital markets are wide open to commodity-rich countries unwilling to borrow more money or service a debt.

Rania Al-Mashat, Egypt’s minister of planning, economic development and international cooperation, said macroeconomic stability needs to be coupled with structural reforms that improve the business environment to attract investment, reduce burdens and support the green transition.

Amid escalating conflicts in the Middle East and North Africa region, policies must be adopted to help mitigate the effects of various types of shocks, she added. For example, an IMF-supported Egyptian program was approved in December 2022 with the aim of achieving macroeconomic stability and encouraging private-sector-led growth.

“The manufacturing sector could benefit from inflows there,” Al-Mashat said. “We are also trying to put stringent ceilings on public investment so that the private sector can come in. All of these are drivers for growth financing for development.”

She called for a rethinking of global financial architecture to help more middle-income, emerging economies find alternative financing, such as debt swaps, for climate action or development.

Mohammed Aurangzeb, Pakistan’s minister of finance and revenue, warned of the long-term effects of economic stagnation. He said his country this month entered into a 10-year partnership with World Bank Group to address the issues of climate change and population.

“Population means child stunting, learning poverty and girls out of school,” he says. “There’s also climate resiliency and decarbonization. Unless we address this, the medium-to-long-term growth is not going to be sustainable.”


UAE’s economy minister says Middle East desires ‘more peace’ as US President Trump takes charge

Updated 39 min 36 sec ago
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UAE’s economy minister says Middle East desires ‘more peace’ as US President Trump takes charge

  • Abdulla bin Touq Al-Marri speaks of need to strengthen historic ties with US
  • GCC region has experienced significant economic growth over past 50 years
  • Emirati minister spoke on panel addressing geopolitical, environmental issues
  • Minister shares hopes of Dubai becoming ‘20-minute commute’ city

DAVOS: Arab Gulf countries want to strengthen their historic ties with the US under the new administration of President Donald Trump as the Middle East urgently needs peace and stability, according to the UAE’s Minister of Economy Abdulla bin Touq Al-Marri.

The Emirati minister spoke at the World Economic Forum in Davos on Tuesday and said that the UAE was the US’ No. 1 commerce partner within the Gulf Cooperation Council, with a bilateral trade of $40 billion annually.

He added that the relationship between the UAE and the US was an example of the strategic ties that Washington had forged with other GCC countries, such as Oman and Bahrain.

Al-Marri said the GCC region had experienced significant economic growth over the past 50 years. However, the Middle East continued to be a volatile region, riddled with political and armed conflicts.

Al-Marri said: “Now, what do we want in the region? We want more peace and we want more stability, and we want more growth for the region.”

He added that the UAE viewed its relationship with the US from a macro perspective and wished to continue on a strong and steady path during the Trump administration.

The Emirati minister was speaking on a panel called “Hard Power: Wake-up Call for Companies,” which addressed geopolitical and environmental issues related to corporations and investments.

Other panelists included Ukraine’s Deputy Prime Minister Yulia Svyrydenko; Nader Mousavizadeh, the CEO of Macro Advisory Partners; and Nir Bar Dea, the CEO of Bridgewater Associates.

Svyrydenko said that Ukraine faced a challenge in convincing investors and corporations to conduct business in a country locked in a conflict with Russia.

The deputy premier said that Ukrainian officials had done their homework to create a secure environment for investments in Ukraine, but that Kyiv was finding it challenging to meet the safety expectations of potential investors.

Svyrydenko said: “What kind of security guarantee do (investors) need? Do you need an anti-missile system in the industrial belts? Or do you need troops, or do you need NATO? It’s time for business to be more vocal about this and help us (answer) this issue.”

Ukraine's Deputy Prime Minister, Yulia Svyrydenko, said that Kyiv was finding it challenging to meet the safety expectations of potential investors (AFP)

Al-Marri said the UAE was “supportive” of the government of Ukraine when asked if Russian nationals residing in the UAE could return home if Trump helps to end the conflict in Eastern Europe.

There are no officially published figures regarding the number of Russian residents in the UAE although at least 1 million Russians visit the country annually as tourists.

Despite the potential for a tariff war between the US and China, Al-Marri stressed that the annual bilateral trade volume between Beijing and Abu Dhabi stood at $80 billion annually.

He said: “You can’t say ‘I need the world without China,’ and you can’t have the world without China; let’s be clear on that. You need China in this kind of trade domain.”

Al-Marri said that the UAE had “always built a bridge, always designed a supply chain” between regions.

He added: “We are ready for the world. We are very open, and we need corporations as well to think about the UAE as a place (for business and trade).”

He said that the UAE’s strategic location between East and West was ideal for companies connecting with various markets.

He added: “So, if you open a shop in Dubai or Abu Dhabi, you are operating the whole world.”

The minister shared his hopes of Dubai becoming a “20-minute commute” city, as its population is projected to reach 4 million next year.


Saudi Arabia raises $990m in sukuk issuances for January

Updated 21 January 2025
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Saudi Arabia raises $990m in sukuk issuances for January

RIYADH: Saudi Arabia’s National Debt Management Center has completed its riyal-denominated sukuk issuance for January, raising SR3.72 billion ($990 million).

In December 2024, the Kingdom raised SR11.59 billion through sukuk, while the amounts in November and October were SR3.41 billion and SR7.83 billion, respectively. Sukuk are Shariah-compliant debt instruments that provide investors with partial ownership of the issuer’s assets until maturity.

According to the NDMC, the January sukuk issuance was divided into four tranches. The first tranche, valued at SR1.25 billion, is set to mature in 2029. The second tranche, sized at SR1.40 billion, will mature in 2032, while the third tranche, worth SR1.03 billion, will mature in 2036. The fourth and final tranche was valued at SR28 million and will mature in 2039.

The consistent issuance of these Islamic bonds is in line with expectations outlined in a recent report by S&P Global, which projected that global sukuk issuance could reach between $190 billion and $200 billion in 2025.

The growth is largely expected to come from markets such as Saudi Arabia and Indonesia. S&P Global also reported that global sukuk issuances amounted to $193.4 billion in 2024, a slight dip from $197.8 billion in 2023.

Adding further optimism to the market, a report from Fitch Ratings released on Jan. 21 highlighted the expansion of the environmental, social, and governance sukuk market.

Fitch expects that outstanding global issuance of ESG sukuk will surpass $50 billion by 2025, with Saudi Arabia expected to play a significant role in this growth.

Meanwhile, a December analysis by Kamco Invest projected that Saudi Arabia would face the largest share of bond maturities in the Gulf Cooperation Council region between 2025 and 2029, with an estimated total of $168 billion.


ESG sukuk set to cross $50bn in 2025: Fitch Ratings

Updated 21 January 2025
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ESG sukuk set to cross $50bn in 2025: Fitch Ratings

RIYADH: The global issuance of environmental, social, and governance sukuk is expected to surpass $50 billion outstanding in 2025, driven by Islamic finance markets in countries including Saudi Arabia, according to an analysis. 

In its latest report, Fitch Ratings said the global value of Shariah-compliant bonds focused on ESG expanded by 23 percent year on year to $45.2 billion outstanding in 2024. This growth outpaced global ESG bonds, which saw a 16 percent increase. The analysis added that countries such as the UAE, Indonesia, and Malaysia would play a key role in driving the growth of ESG sukuk.

These bonds are investments in renewable energy and other environmental assets and are considered key debt instruments as the world moves toward a greener future. 

“The ESG sukuk market has a robust credit profile, with nearly all Fitch-rated ESG sukuk being investment grade,” said Bashar Al Natoor, global head of Islamic Finance at Fitch Ratings. 

He added: “Sukuk is now a key ESG funding tool in emerging markets, with growth expected amidst sustainability initiatives, funding needs, and a favorable funding environment. However, issuances remain concentrated in a handful of countries.”

ESG sukuk expansion also outpaced global sukuk growth, which witnessed a 10 percent increase in 2024. 

The US-based credit rating agency added that green and sustainable sukuk could help issuers opportunistically tap demand from ESG-sensitive international investors from the US, Europe, and Asia, as well as sukuk-focused Islamic investors from the Gulf Cooperation Council region. 

Several factors, including funding diversification goals, enabling regulations, sustainability initiatives, and net-zero targets pursued by sovereigns, banks, and corporations, as well as government-related entities, could boost the issuance of this debt product in 2025.

The analysis revealed that ESG sukuk is also likely to cross 15 percent of global dollar sukuk issuance in the medium term. 

The report also highlighted the impact of the adoption of Accounting and Auditing Organization for Islamic Financial Institutions’ Sharia Standard 62. 

“Risks facing ESG sukuk market growth include Shariah-compliance complexities, such as linked to AAOIFI Sharia Standard No. 62, weakening sustainability drives, geopolitical risks, and oil volatilities,” said Fitch Ratings. 

This AAOIFI guideline, which was published as an exposure draft in late 2023, aims to standardize various aspects of the sukuk market, including asset backing, ownership transfer, and trading procedures.

Earlier this month, S&P Global said that global sukuk issuance is projected to hit between $190 billion and $200 billion in 2025, driven by increased activity in key markets such as the Kingdom and Indonesia. 

In December, a report by Kamco Invest projected that Saudi Arabia would face the largest share of bond maturities in the GCC region from 2025 to 2029, reaching an estimated $168 billion.