The Kingdom of Saudi Arabia is witnessing a remarkable increase in the number of women joining the labor market, a change spurred by better access to education, lower birth rates, and a shift towards a more inclusive society.
This upward trend has allowed the nation to surpass the gender participation objectives set in its ambitious Vision 2030 reform plan, as per insights from a S&P Global report.
In an effort to create a balanced workforce, both governmental and private sectors have been proactive, enacting legal reforms and championing diversity initiatives that support women’s empowerment in the workplace.
The initiative is in line with Saudi Arabia’s strategic aim to achieve gender parity and boost female participation in professional sectors.
The Gulf Cooperation Council as a whole is experiencing a similar surge in women’s workforce engagement.
Recent World Bank data indicates that the female labor force participation rate in Saudi Arabia is at 34.5 percent, in contrast to 79.9 percent for males.
An industry expert from Bain & Co. in the Middle East, Anne-Laure Malauzat, spoke with Arab News, noting that this rate has already outdone the initial 30 percent goal, prompting new targets of achieving 40 percent by 2030.
Malauzat pointed out several strategic efforts in the Kingdom designed to promote employment among women.
‘On the governmental side, some examples include the Vision 2030 in Saudi Arabia — out of its 11 Vision Realization Programs, two of them are heavily focused on empowering women, namely the Human Capability Development Program and the Quality of Life Program, and female participation in the workforce is a critical enabler to the success of the other 9 programs,’ she explained.
Spokesperson for Red Sea Global (RSG), Zainab Hamidaddin Al-Hanoof Al-Hazzani, acknowledged that their organization had exceeded the 30 percent target ahead of time.
‘At Red Sea Global, we appreciate the value of gender diversity in our teams and have taken significant strides to capitalize on the increasing trend of female workforce participation,’ Al-Hazzani stated.
The company takes pride in having a diverse range of women in various roles, including high-ranking executive positions.
‘Women are making substantial contributions in every department at Red Sea Global, from master planning and construction to scientific research. In some departments, female representation is as high as 44 percent, exceeding the company-wide average,’ she added.
Laila Kuznezov from Oliver Wyman referred to projections by S&P Global Ratings suggesting that continued growth in female workforce participation could bolster Saudi Arabia’s economy by $39 billion, or 3.5 percent, by 2032.
She further mentioned a series of national initiatives aimed at women’s empowerment, such as awareness campaigns on the importance of women in the workforce, anti-discrimination policies, job matching improvements, as well as training and support programs specifically tailored for women.
‘Women are progressively entering all levels of the workforce, including high-skill and traditionally male-dominated sectors like engineering and finance,’ Kuznezov remarked.
She also noted the government’s efforts to blend professional and family life through flexible work arrangements and expanded childcare options, alongside campaigns that shift societal perspectives by celebrating the achievements of accomplished Saudi women.
Kuznezov asserted that these comprehensive measures are setting the stage for a future where women can actively engage and flourish across economic sectors.
She praised initiatives such as the Badir Program for Technological Entrepreneurs, which offer mentorship and training to women entrepreneurs, particularly in tourism and hospitality.
The preparedness of Saudi women for the workforce, given their high educational attainment, is underscored by the need to create job opportunities, especially within the private sector, where 20 percent of women are overqualified for their current roles compared to 14 percent of men.
Kuznezov emphasized the importance of women assuming leadership and managerial positions, which are expected to grow in high-demand sectors like tourism and hospitality.
‘By enabling these advancements, we can ensure women’s skills and talents are fully utilized, significantly contributing to the Kingdom’s economic diversification and overall success,’ she concluded.
RSG aims to see Saudi women in leadership roles, driving inclusivity, particularly in tourism and hospitality.
‘We’re committed to creating opportunities for women in these sectors. To realize this vision, we’ve introduced a range of programs and initiatives that attract, retain, and advance female talent within our organization,’ Al-Hazzani elaborated.
RSG ensures fair recruitment by using gender-neutral job ads and diverse candidate selections.
The company has launched training programs like the Red Sea Vocational Training Program and The Red Sea Pioneers Vocational Training Program, which along with partnerships with leading educational institutions, aim to equip Saudis for the tourism sector. While these programs are open to all, they expect a significant uptake by women.
RSG not only focuses on increasing the female workforce but also invests in their career progression through training, mentorship, and leadership programs, such as the Female Leadership Program, which prepares women for leadership in global roles.