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Ideation Center Insight Dr.

Mona AlMunajjed

Women’s Employment
in Saudi Arabia
A Major Challenge
Contact Information

Abu Dhabi
Richard Shediac
Partner
+971-2-699-2400
richard.shediac@booz.com

Dubai
Karim Sabbagh
Partner
+971-4-390-0260
karim.sabbagh@booz.com

Riyadh
Ghassan Barrage
Partner
+966-1-211-0300
ghassan.barrage@booz.com

Dr. Mona AlMunajjed


Senior Advisor, Ideation Center
+966-1-211-0300
mona.almunajjed@booz.com

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EXECUTIVE From international legislative commitments to NGOs
SUMMARY dedicated to women’s welfare, Saudi Arabia’s policies and
programs are promising steps on the road to women’s full
participation in its labor market. However, women still
make up less than 15 percent of the national workforce;
this represents an enormous source of untapped potential
for the Kingdom, whose labor force currently relies heavily
on expatriates. Legislative, social, educational, and occupa-
tional constraints prevent women from fully participating
in the Saudi labor market. Overcoming these constraints
will be essential if the Kingdom is to create a dynamic
market economy. The introduction of sweeping reforms to
the national educational system is a major step in preparing
Saudi women for competitive jobs. Labor market reforms
and labor law reforms—including legislation promoting
gender equality and family-friendly mechanisms—should
be seriously considered. In addition, Saudi Arabia should
seek to create a supportive environment that encourages the
design of programs to emphasize the positive role of Saudi
women in the labor market and introduce women to senior
employment positions.

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THE STATE In 2007, the active workforce in Saudi
Arabia comprised 8.2 million people,
labor force has nearly tripled, from
5.4 percent4 to 14.4 percent. (The
OF WOMEN’S fewer than half of whom were Saudi labor force, or the economically active
EMPLOYMENT IN nationals.1 Equally important, 85.6
percent of the nationals in the labor
population, includes people who are
currently employed and those seeking
SAUDI ARABIA force were men.2 Women in the Saudi employment.) The majority of women
labor force had an unemployment are working in the field of education,
rate of 26.9 percent—nearly four in both teaching and administrative
times that of men (see Exhibit 1).3 As positions. However, although this
the Kingdom promotes its Saudization latest statistic is an improvement, it
policy, which seeks to increase the represents one of the lowest levels of
A survey of the Saudi labor market proportion of Saudi nationals in new national female labor participation in
reveals enormous potential as well as competitive jobs, women clearly must the region: The United Arab Emirates
sig­nificant challenges. The Kingdom’s be supported and encouraged to (UAE) boasts a national female partici-
bold move to diversify away from a contribute to their nation’s economy. pation rate of 59 percent;5 Kuwait’s is
purely petroleum-based economy will 42.49 percent,6 Qatar’s is 36.4 percent,
require the skills, participation, and There are signs that this support has Bahrain’s is 34.3 percent, and that of
energy of its most valuable resource: already begun. Since 1992, women’s Malaysia, a Muslim country outside the
its citizens. participation rate in the Saudi Middle East, is 46.1 percent.7

Exhibit 1
The Unemployment Rate for Saudi Women Is Significantly Higher Than for Saudi Men

SAUDI MALE AND FEMALE UNEMPLOYMENT RATES (2001–2008)


26.9
24.4 24.7 Male
Female
17.3

8.4 8.3
6.8 6.8

2001 2004 2007 2008

Source: Saudi Arabian Monetary Agency (SAMA), Forty-Fourth Annual Report, August 2008, p. 242; P.K. Abdul Ghafour, “Job Seekers in Private Sector Urged Patience,” Arab News,
March 30, 2009 (for 2008 figures only)

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WOMEN’S Today, more than 90 percent of Saudi
women actively participating in the
to Deputy Minister for Labor Abdul
Wahid Al-Humaid, most unemployed
EMPLOYMENT workforce hold a secondary qualifica- women are highly qualified: 78.3

AND EDUCATION tion or a university degree.8 In 2006,


57 percent of university graduates in
percent of them are university gradu-
ates,10 and more than 1,000 have a
Saudi Arabia were women,9 and this doctorate.11 By contrast, 76 percent
rising education level is a major factor of unemployed men have only a sec-
in the increase of female participation ondary education or lower.12
in the labor force (see Exhibit 2).
The national system of education is
This is not to say that simply getting a failing to prepare Saudi women for
degree enables Saudi Arabia’s females competitive roles in the labor force,
to join the labor market—unfortu- limiting them to traditional fields of
nately, it does not. Indeed, according work such as teaching and service

Exhibit 2
Educated Women Are Employed in the Labor Force

NUMBER OF EMPLOYED SAUDI MEN AND WOMEN (15 YEARS AND OLDER) BY EDUCATION STATUS AND SEX (2007)

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0
Males Females

Illiterate Intermediate Bachelor’s


Read & Write Secondary Higher Diploma/MA
Primary Diploma Doctorate

Source: Saudi Ministry of Economy and Planning, Statistical Yearbook, 43rd edition, 2007

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businesses. In 2007, 93 percent of all nationals are selective in their choice lion Saudi women are unable to enter
female university graduates special- of jobs, often refusing unskilled, the workforce because of their lack
ized in education and humanities,13 manual, or low-paying work. of education or appropriate skills.14
while a shortage of jobs in those fields These women—some of whom lack
has resulted in Saudis seeking work If young and educated Saudi women the support of a husband or family—
outside their country. More than 300 are having difficulty obtaining mean- suffer heavy social and economic
Saudi female graduates have already ingful and competitive employment, repercussions.
accepted teaching jobs in Bahrain, the Kingdom’s uneducated women
Kuwait, and Qatar. are all the more challenged. In 2007, Women in rural areas, who often
UNESCO estimated that 20.6 percent experience higher illiteracy rates
The Saudi labor market is affected not of Saudi women over the age of 15 along with more conservative and
just by a lack of employment opportu- are illiterate. With only 3 percent of patriarchal social norms, are doubly
nities for women but also by women’s female illiterates finding an active role challenged: Recent regional unem-
voluntary unemployment. Saudi in the labor market, more than 1 mil- ployment rates indicate that rural

“We are in a dilemma: What to do


with our education? Where to work?
A number of girls get their diplomas
but are lost afterward due to the lack of
job opportunities. Saudi women should
participate more in society, and there
should be more social support for them
to seek work opportunities so that they
could also give in return.”
— Head of a women’s welfare association in Jeddah*

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areas offer the fewest employment Although Saudi laws and regulations greater job security and more advan-
opportunities. Unemployment is based on the Shari’a guarantee a wom- tages than the private sector does.
highest in the region of Hael, where an’s right to work, they stipulate that Women currently make up about
it reached 35 percent, followed by she should work in an appropriate en- 30 percent of government employees.17
the Eastern Region at 32 percent, vironment—that is, not mixing with Indeed, of the total population of
Makkah al Mukarramah at 29 per- men or being exposed to harassment. working Saudi women, around
cent, Al Madinah al Munawarah at Sex segregation by occupation is there- 95 percent are employed in the public
28 percent, the region of Asir at 23 fore prevalent in Saudi society: Women sector—a significant concentration
percent, and the lowest, Al Qassim, at are concentrated in certain professions of the active, educated female work-
17 percent.15 Even though Al Qassim that are seen as feminine and remain in force. Eighty-five percent of all work-
is a conservative region, it has a pool less distinguished positions than men.16 ing women are in education, in both
of educated women who are working teaching and administrative positions
as teachers in schools and at the uni- The public sector is the largest (see Exhibit 3).18
versity, mainly in the public sector. employer of Saudi women, providing

Exhibit 3
Working Women Are Concentrated in Education

NUMBER OF SAUDI FEMALE TEACHERS AT SCHOOL GENERAL EDUCATION LEVEL

120,000

Primary
100,000
Intermediate
Secondary
80,000

60,000

40,000

20,000

1996 2005

Source: Ministry of Education; SAMA, Forty-Fourth Annual Report, 2008, p. 357

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Although only 5 percent of working the banking sector increased dramati- their own business investments and
Saudi women are employed in the cally—280 percent—in recent years, enterprises, 97 percent of which are in
private sector,19 the number of them from 972 in 200021 to 3,700 in 2008. wholesale and retail trade, finance and
grew between the beginning of 2006 As part of the Saudization process, business services, and construction.
and the end of 2007, from 40,000 the Ministry of Labor has recently Saudi women also own 12 percent
women to 51,000 (i.e., a 27 percent identified a number of opportunities of the firms in the country, including
increase).20 The majority are concen- tailored to women: receptionist, tailor, 16 percent of the large manufacturing
trated in urban areas, near business banquet-hall employee, nutritionist, firms.22 However, the permission
centers (see Exhibit 4). governess, photographer, beautician, of a wakil, or male guardian, is oblig-
caterer, and hospitality or recreation atory to proceed or enter into busi-
In the private sector, too, Saudi women industry worker. ness transactions. Although the need
work in a narrow range of jobs, such for a wakil was officially overturned,
as private business and banking. The Aside from the positions already men- implementation of this change is
number of Saudi women working in tioned, some Saudi women manage still lagging.

Exhibit 4
Most Women Working in the Private Sector Are in Urban Areas

DISTRIBUTION OF SAUDI FEMALE LABOR FORCE IN PRIVATE SECTOR BY REGION (2007)

2%

25%
40%

3%

2%

Riyadh
Al Madinah al Munawarah
5% Eastern Region
24%
Al Qassim
Others
Makkah al Mukarramah
Asir

Source: Ministry of Labor; SAMA, Forty-Fourth Annual Report, 2008, p. 239

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Current At the national level, the government
has taken a number of promising
things, the plan called for a study
investigating women’s needs in the
Initiatives to legislative steps. The Saudi labor labor market; awareness campaigns
Promote Saudi code grants every citizen—regardless
of gender—the right to work, and
promoting women’s employment; the
increased presence of women in the
Women in the stipulates that firms must provide all government and the private sector;
Labor Market workers opportunities for training.
In 2004, the Council of Ministers
and the provision of support services
such as day-care centers.23 Indeed,
approved Regulation No. (120) for the first time, the government
(12/4/1425H), a measure aimed is licensing day-care centers to help
at enhancing women’s role in the working mothers.
economy. In addition to establishing
Saudi Arabia has taken many positive special women’s sections within the Building on this momentum, Crown
steps aimed at promoting women’s government and employment and Prince Sultan bin Abdul Aziz Al Saud
advancement in the labor market. At training initiatives, the regulation announced plans in 2007 to allocate
the international level, the Kingdom called for the establishment of cross- one-third of government jobs to Saudi
has ratified three conventions that pro- sector coordination mechanisms, as women and to create additional job
mote gender equality in the workforce. well as a groundbreaking decision opportunities for them. The Council
The United Nations Equal Remunera­ to eliminate the need for a woman of Ministers recently issued a number
tion Convention calls for equal pay to have a male guardian. In 2006, of measures aimed at accomplish-
for work of equal value, regardless of the Saudi labor code was revised to ing this, in areas such as computers,
gender. Similarly, the United Nations include new gains for working women librarianship, and vocational work in
Convention on the Elimination of in regard to maternity and medical welfare centers and prisons.
All Forms of Discrimination against care leave, nursery provisions, vaca-
Women (CEDAW) bans discrimination tion time, and pensions. Several government initiatives
in employment and occupation. The have been created to focus specifi-
International Labour Organization’s The Saudization policy has identified cally on job creation and training.
Discrimination (Employment and positions particularly suitable for For example, the Human Resource
Occupation) Convention requires rati- women. In addition, the government’s Development Fund (HADAF) aims
fying states to pursue a nondiscrimina- Eighth Five-Year Development Plan to increase job opportunities for
tory national labor policy. By signing (2005–2009) emphasized the need for Saudi women through telecommut-
these conventions, Saudi Arabia has more employment and advancement ing arrangements with private-sector
committed itself to their implementa- opportunities for women, stressing enterprises.24 The fund has already
tion—a decision that is binding under the importance of their participa- created employment for more than
international law. tion in the economy. Among other 4,120 Saudi women.

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The government also announced committed, idealistic NGOs dedicated low-income divorced and widowed
plans to set up 17 technical colleges to women’s welfare have led efforts to women. More than 800 Saudi women
for women in different parts of the create economic opportunity for poor have already benefited from the
country.25 More than 300 technical and uneducated women in both urban initiative through projects including
and vocational institutes will be built and rural areas through vocational the sale of clothing, livestock, and
to train young Saudi men and women training and small business loans. furniture, as well as coffee and keleja
and provide them with new skills to or waffle stands.28
enter the labor market. The Al-Nahda Philanthropic Society
for Women in Riyadh’s Training and In 2005, the nonprofit Centennial
The government has also opened the Employment Center aims to improve Fund was established as part of
tourism industry to women’s employ- human resources for Saudi females the country’s economic initiative to
ment, along with training support at and provides free training programs, assist small businesses and young
institutions abroad. In the city of Al along with a website (www.tawdeef. entrepreneurs outside the Kingdom’s
Khobar, more than 30 Saudi women com) for women’s recruitment and largest cities. In addition to loans, the
now work in five-star hotels, in areas employment.27 To date, the center has fund provides mentoring services to
such as reservations and marketing. In provided job opportunities for 2,015 entrepreneurs for up to three years.
the region of Tabuk, with its growing Saudi women in factories, banks, and Thus far, 26 percent of the fund’s
influx of tourists, a number of Saudi social, educational, and health asso- projects have benefited Saudi
women are working as guides.26 ciations and institutes. women’s interests in areas such as
art and design, administrative ser-
In addition to the public sector’s Additionally, King Abdul Aziz vices, restaurants and food supply,
efforts—many of which seem to have Women’s Charity Association’s Al beauty salons and clothing shops,
been directed toward the urban, Barakah Loans Center in Buraidah, sporting facilities, and day-care
young, and educated—a number of Al Qassim, finances projects for centers.29

“We do not differentiate between men


and women when it comes to providing
employment.”
— Prince Sultan bin Salman bin Abdul Aziz Al Saud,
Saudi Commission for Tourism and Antiquities*

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Women and the Private Sector in
Malaysia

Malaysia—a Muslim, family-


oriented country like Saudi
Arabia—has recognized the
need to promote women’s
participation in its labor market
and is showing no signs of slowing
down in this regard. The private
sector is the largest employer of
women in the labor force, and the
government has taken measures
to involve women in business by
providing easy access to capital
(for instance, via the Women
Entrepreneurs Fund). Various
A major initiative arising from the pri- companies such as Sama Airlines, Four
special assistance schemes are
vate sector to combat unemployment Seasons Hotel, the World Trade Center
available to acquire or upgrade
in the country is the Abdul Latif in Riyadh, and the Manhal Center.
technology; relocate businesses;
Jameel (ALJ) Community Services
and train in business management,
Programs, which since 2003 has Other noteworthy initiatives include
marketing, sales, packaging and
created more than 113,855 job the Prince Sultan Fund for Supporting
labeling, and business networking.
op­portunities for both men and Women’s Small Projects in the Eastern
Embroidery and handicraft
women. Through its Productive Region, which is aimed at supporting
workshops have been established
Family Project, ALJ in 2009 found women’s initiative, entrepreneurship,
to assist women in setting up
24,772 jobs for women in different and creativity, and the Work Plan
small businesses. Women are
parts of the Kingdom, providing them Project for Women Employment at
also employed as doctors,
with small loans and training courses Home, launched by the League of
dentists, lawyers, and architects.
in areas such as cooking, makeup, National Women at the Chamber of
In terms of occupational structure,
first aid, and tailoring.30 Commerce and the City of Riyadh,
Malaysia ranks fifth globally for
which supports and organizes work
the percentage of senior positions
Established in 2005, the Empowering that women can do from home.32
held by women in medium-sized to
Capabilities, Skills and Aptitude
large enterprises (MLEs). Indeed,
(ECSA) employment agency is the first From its international legislative
almost 39 percent of MLEs have
Saudi recruiting company working commitments to its tiniest NGOs,
three or more women holding high-
to specifically address the needs of the Kingdom’s policies and pro-
level, decision-making positions.
Saudi women.31 The agency, which grams are signs of development and
The proportion of women who
also organizes orientation and train- progress—promising steps on the road
are senior officials and managers
ing programs, has already succeeded to women’s full participation in the
increased from 4.8 percent in 2000
in placing more than 200 women in Saudi labor market.
to 5.4 percent in 2005.

Source: The Edge Financial Daily,


May 4, 2009

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MAJOR The Saudi government is making
major efforts to improve the status
one of wife and mother, the move
toward greater female participation
CONSTRAINTS of women in terms of employment. in the labor force has been met with

ON SAUDI However, a number of social, legal,


educational, and occupational factors
skepticism, debate, and even hostil-
ity.33 Although many Saudi men
WOMEN JOINING continue to hinder Saudi women’s full welcome the opportunity for women

THE LABOR participation in the labor market,


preventing the Kingdom from reach-
to contribute economically, others fear
change. There is a growing aware-
MARKET ing its full economic potential. ness that women have an important
role to play in the labor market, but
Social Constraints pervasive social customs continue
Cultural traditions and local cus­- to limit the scope and extent of that
toms play a major role in a nation’s participation.34
economic development, creating a
unique set of opportunities and chal- In addition to the stigma associated
lenges that both inform and constrain with females working in a mixed-
labor policy. gender environment, Saudi women
face a question that occupies women
In Saudi Arabia, there is a growing across the globe: “How do I balance
debate over the role of women in work and family?” Achieving a com-
society. As a nation that deeply values fortable work–life balance is not deter-
family and tradition, the Kingdom mined just at the personal, family, or
has been hesitant to fully embrace workplace level; it is also very much a
any development that appears to function of having appropriate nation-
threaten the traditional family unit. al policy in place. In Saudi Arabia, as
Because women’s role in Saudi society elsewhere, social norms continue to
has traditionally been the domestic play a role in shaping that policy.

“The unemployment problem is


ba­sically among women ... (and)
it is mainly due to social customs....
The Labor Ministry alone will not
be able to solve the unemployment
problem.... It requires joint efforts
of families, schools, individuals
and social institutions.”
— Abdul Wahid Al–Humaid,
Saudi Deputy Minister for Labor*

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Legal Constraints mines government authority while education has declared that about 90
Although official Saudi employment constraining the growth and flexibility percent of the Kingdom’s educational
laws and regulations do not explicitly of the labor market. output is not linked to the needs of
discriminate against women, major the labor market.35
regulations regarding discrimination Another legal constraint impeding
against women in the labor market women’s ability to contribute to the The Saudi educational system simply
are limited. Of the Saudi labor regula- economy is the fact that women are is not providing girls with the skills
tions’ 245 articles, only 12 relate to not permitted to drive. This situation and background they need to success-
women’s concerns such as child care, makes it difficult for them to com- fully compete in the labor market.
breastfeeding, and sick leave. mute to work without a male driver The current educational system
or family member. When half of a relies on rote learning and does not
In addition, full implementation lags on country’s population cannot freely sufficiently promote analysis, skills
existing legislation at both the interna- access the labor market, the economy development, problem solving,
tional and national levels: Rights exist simply cannot reach its full potential. communication, and creativity. In
in theory, but they have been largely addition, there is a shortage of appro-
unenforced. For example, Saudi busi- Educational Constraints priate education in areas vital to the
nesswomen are still widely required to The lack of high-quality basic educa- development of the new knowledge-
have an authorized male representative tion for females lies at the heart of based economy, such as math, science,
to manage their businesses and repre- the Saudi labor market segmentation. technology, and computer literacy.
sent them in government agencies—a Girls’ public-sector education has not As a result, Saudi women are not suf-
practice that has led to many cases met the demands of the labor market, ficiently empowered to participate in
of fraud and financial loss. Although and there are major gaps between digital society.
both the Council of Ministers and the what employers require and what
Ministry of Commerce and Industry graduates can offer. In addition, there The technical education system
have issued laws eliminating the wakil are not enough university seats for has not been revised for more than
requirement, they have largely been women out­side education colleges. 20 years. Moreover, there are insuf-
ignored—a state of affairs that under- Indeed, a previous Saudi minister of ficient training opportunities for

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women in areas such as information and management positions; less than ment to effective programs that could
technology and management, and 1 percent of decision-making posts lead to women’s empowerment. The
existing programs have not been are held by Saudi women.36 Instead, lack of a highly specialized unit at the
formulated according to the needs women are placed in what are Ministry of Labor that is responsible
of the labor market. The lack of considered to be nonstrategic jobs. for regulating women’s work, along
these skills hampers women’s ability A number of Saudi women have com- with the dearth of women being
to obtain competitive employment, plained about the difficulties and feel- appointed to positions within the
interact in business settings, and ings of failure they experience when Saudi legal system, only compounds
move up the career ladder. It also working in a patriarchal milieu.37 the problem.
represents an enormous obstacle
on the road to the Kingdom’s full Also problematic is the lack of In addition, the Saudi labor market
participation in the global economy. organized infrastructural support lacks up-to-date, gender-specific
for working women at both govern- statistical data on the role of Saudi
Occupational Constraints ment and institutional levels. Family- women in the economy. Statistical
Occupational segregation is strongly friendly policies including flexible techniques, indicators, definitions,
evident in the Saudi labor market, working hours, parental leave, child- methodologies, processes, and con-
with women largely restricted to care facilities, and transport are not in cepts in the area of women and work
traditionally female-oriented fields place in the workforce. need to be much more developed.
in the public sector. Men continue The absence of complete and updated
to have greater opportunities than As trade unions are not permitted in sociodemographic and employment
women to obtain productive work. Saudi Arabia, women do not have a data on women hinders socioeco-
mechanism to protect their rights, and nomic planning and future labor
There is a marked lack of opportuni- their weak organizational and negoti- market policies.
ties for women in decision-making ating capacities are a serious impedi-

“I believe that there should be more


opportunities for women to work
and raise children, and that special
regulations should be implemented
for working women in Saudi Arabia.
Serious considerations should be given
to the fact that women are an active part
of society in addition to being mothers
and housewives.” — Female medical doctor
in Riyadh*

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POLICY The Saudi government must use the
same energy and skill that it has
and success in the workforce. This
could include a quota system for
RECOMMEN- employed in developing its natural women similar to Saudization, as well
DATIONS TO resources to make the most of a
resource that may be less tangible,
as other incentives such as family-
friendly workplace practices. These
ENHANCE but no less valuable: its human capi- policies must be linked to a clear
WOMEN’S tal. Saudi Arabia’s women represent
an untapped and important source
monitoring strategy that ensures their
effectiveness, and a modern system of
EMPLOYMENT of power for the economy. Although data collection and statistical analysis
incorporating women fully into the must be put in place. Cross-sector
labor market may not be achieved partnerships, in addition to coopera-
overnight, it can—and must—be tive regional initiatives dedicated to
achieved if the Kingdom is to transi- creating a female labor network,
tion to a knowledge-based economy. should be established in order to
leverage existing resources.
Decision makers at every level of
government can no longer avoid the At all levels, the government should
implementation of sweeping reforms seek to create a supportive cultural
in education and labor policies to environment for women and commit
ensure that women have the oppor- to overcoming the existing customs
tunity and skills to participate—and and social barriers that hamper
succeed—in the economy. Women’s women’s success. In addition, it must
employment should be a crucial revamp both the educational and the
element in a larger macroeconomic vocational training systems to better
policy designed to foster equitable prepare women for the labor force—
social and economic development. emphasizing sciences, mathematics,
foreign languages, and information
First and foremost, the Saudi govern­ technology—and reduce the influ-
ment will have to ratify, imple- ence of harmful gender stereotypes. It
ment, and enforce legislation that should establish a “lifelong learning”
promotes equal participation in system of training and guidance and
the labor market. The government promote entrepreneurship and self-
should implement policies that create employment, and Saudi workers must
employment opportunities for women have access to professional develop-
and create institutional mechanisms ment in the areas that will matter
that promote women’s well-being most in a knowledge-based economy.

Booz & Company 13


WHAT SHOULD awareness about employment issues,
ultimately helping to create policy that
and successes. Women should be made
aware of their legal rights so that they
BE DONE BY THE rigorously ramps up women’s partici- may properly take advantage of them,

GOVERMENT AT pation in the labor market as well as


bolstering literacy, educational, and
and the Saudi public should receive
positive messages about the valuable
THE NATIONAL vocational skills. In creating the task role of women in the labor force.

POLICY LEVEL force, whose board should consist of


equal numbers of men and women,
First and foremost, public awareness
campaigns should focus on changing
the government should recruit women the traditional gender stereotypes that
across a variety of fields including hamper women’s ability to properly
education, business, NGOs, and participate in the economy. Media
the public sector. The task force campaigns, conferences, and public
should also reach out to women in service announcements should all
both urban and rural areas, explor- be effectively leveraged to convey a
Going forward, the Saudi govern- ing their needs through open-ended fundamental message: Saudi women
ment should develop a national plan questionnaires, interviews, and focus can and must play a critical role in the
of action and policy formulation groups that probe the realities of the labor market.
for working women. Policies need employed, unemployed, and under-
to target women’s participation in employed alike. The task force should Moreover, the government should
the labor market, focus on upgrad- take advantage of the resources of ensure that working women are repre-
ing women’s levels of literacy and local chambers of commerce and sented at top decision-making levels,
education, and increase skill build- NGOs, enabling it to more accurately across every sector and region. Women
ing and vocational training. These understand the needs of women both should be encouraged and prepared to
policies—including recruitment, job inside and outside the labor market— assume highly visible positions, and
assignments, career planning, and a key step in diagnosing and treating should be selected to represent the
wages—should be closely monitored. existing problems and creating a com- Kingdom at regional and international
The Saudi government should form prehensive framework for action. meetings. In addition to leveraging
partnerships with civil society, non- women’s talents for the betterment of
governmental organizations (NGOs), Once established, that framework needs the economy, doing so will improve
and the private sector for implementa- to be more than a theoretical model: It Saudi Arabia’s national and interna-
tion and follow-up on the action plan. should be an evolving, dynamic initia- tional standing—a win-win situation.
tive that is energetically implemented
In addition, the government should across every sector of Saudi society, In addition, the government should
launch a national task force that at both the macro and micro level. As look for ways to facilitate the develop-
assesses the needs of women in the such, the government should ensure ment of a system of transportation
labor market. This task force—a broad that every aspect of labor policy—from services for women that enables them
partnership across sectors, drawing training and recruitment to wages and to commute to work without the help
on the experience and resources of the workplace practices—is strictly evalu- of a male driver or family member.
Ministry of Labor, business, and civil ated, monitored, and modified based An employer-provided system is also
society—should be an ambitious brain- on feedback as well as the evolving necessary to shuttle female employees
storming entity committed to develop- needs of the market. between their homes and places of
ing a national framework for policy work. The current system impedes
creation and implementation. The government should also work to women’s ability to participate in the
raise awareness about the positive role labor force and therefore deprives
The task force would facilitate the that women play in the labor market, Saudi Arabia of realizing its econo-
exchange of information and raise as well as their rights, opportunities, my’s—and its people’s—full potential.

14 Booz & Company


WHAT SHOULD the bureau could concentrate and
stra­tegically leverage expertise and
a follow-up mechanism to monitor
im­plementation by the government
BE DONE BY THE resources from every available field, and the private sector and to evaluate
MINISTRY OF from academia to transportation.
In doing so, it would act as the engine
its impact.

LABOR of progress for women in the labor At the policy level, the ministry should
market, helping to bring the Kingdom create, promote, and implement a
to a more dynamic place within the system of infrastructural support for
global economy. The bureau would working women. Family-friendly poli-
be a natural catalyst for the national cies—including flexible hours, parental
task force discussed above. leave, and child-care facilities—are
As the entity that is most directly essential to ensuring that women do
responsible for setting employment Fundamentally, the Ministry of Labor not avoid the labor market out of con-
policy, the Ministry of Labor has the will have to focus on legislation. cern for their children’s well-being, as
opportunity to assume a vital role in Without a strong legal foundation, well as making certain that they flour-
improving the position of women in policies crumble. Going forward, the ish once they are there. The ministry
the Saudi labor market. ministry should vigorously ensure that should also promote the establishment
both national and international labor of nur­series in workplaces, collaborat-
A critical first step in achieving this laws are implemented and enforced— ing with local communities to match
goal is the establishment of a special including United Nations conventions child-care providers with workplaces
bureau for women’s affairs within the on gender equality in the workplace. in need of their services.
ministry. This bureau would stand
at the helm of the Kingdom’s efforts Specifically, the ministry should lead As a family-oriented society, Saudi
to incorporate women into the labor efforts to ratify and enforce Saudi Arabia has a strong incentive to
market, creating a framework for le­gislation and conventions that ensure implement these policies, which
policy and establishing the direction gender equity in recruitment, employ- help children as well as their work-
of future research on the needs and ment, and compensation, as well as ing mothers, all while laying the
status of working women. As a per­ social security coverage and family- foundation for a new generation of
ma­nent entity within the ministry, friendly policies. It should establish Saudi citizens who have the skills

Booz & Company 15


and opportunity to contribute to a Lessons from Malaysia
dynamic, knowledge-based economy.
The Malaysian government is now taking definitive steps to encourage
In close cooperation with the Ministry women to join the workforce. It is reviewing laws and regulations with
of Education, the Ministry of Labor an eye toward promoting the status of women and implementing court
should also enable the creation of a decisions, including those under Shari’a law. The private sector is also being
network of centers that offer career encouraged to review its collective agreements to ensure that there is no
guidance and development services gender discrimination. In addition, the government is working to ensure
at both the national and regional the provision of family-friendly workplace practices, training programs,
levels for women joining the labor community child care, and nursery centers. These measures lead to
market. By helping girls and women improved productivity, greater job satisfaction, and better retention rates.
understand what motivates them and Source: Ninth Malaysia Plan (2006–2010)
clarifying their goals, aspirations, and
opportunities, these centers can help
smooth their career paths.

Programs will have to be designed


with a timetable for implementation,
along with a supervisory framework
for monitoring progress and modify-
ing programs based on evaluation and
feedback. In order to accomplish this,
the ministry should conduct timely
research, employ up-to-date statistical
techniques, and ramp up data collec-
tion, creating an accurate and current
snapshot of the Saudi labor market
as well as women’s place in it. Data
collection should include household
surveys in urban and rural areas,
identifying the needs of all citizens. In
addition, institutions across all sectors
of the labor market should be ana-
lyzed in regard to the skills currently
in demand. Statistical data should be
updated, aggregated, and analyzed.

16 Booz & Company


WHAT SHOULD In order to accomplish this, the public
education system—particularly at the
of employers is crucial in a country
where a traditional focus on religious
BE DONE BY THE primary and secondary levels—should and cultural studies is leaving gaps

MINISTRY OF be revamped so that it is more flexible


and responsive to the needs of the
between nationals’ skills and compa-
nies’ needs. Universities for women
EDUCATION labor market. Basic education should in major cities and provinces should
promote social skills and an under- offer open-entry/open-exit courses
standing of the culture and impor- and distance-learning opportunities,
tance of work. Learning materials and their curricula should be revised
should emphasize the ability to iden- to portray women as a vital part of
tify, analyze, and solve problems and the country’s economic development.
Multiple studies have shown that the to adapt to new tasks. What’s more,
first few years of life lay the founda- the curriculum should be reformed Moreover, the Ministry of Education
tion for one’s cognitive, social, and with an eye toward gender-sensitivity, should encourage the creation of a
emotional growth. In looking to so that children are conscious from culture of continuous education and
improve women’s role in the Saudi an early age of women’s equal abili- training. Women should be encour-
labor market—and improve the ties and rights. Textbooks and other aged to polish their skills and learn
market itself as a result—decision learning materials should highlight new ones to keep up with the market’s
makers must recognize the necessity women succeeding in a variety of pro- changing needs. The ministry should
of a solid, comprehensive, and flexible fessions, including those traditionally invigorate the technical education
educational system that prepares girls associated with men. system with new strategies and train-
to compete in the global marketplace. ing programs to keep up with the
The Ministry of Education has a valu- It is important that schools become needs of the labor market, enriching
able opportunity to assume a leader- incubators of science and technology, workers with versatile, adaptable
ship role in reforming and improving preparing students to work in fields skills in areas such as science and tech-
the Saudi public educational system such as information technology and nology and developing their technical
so that it produces a robust, capable engineering. Allying the higher educa- and professional competencies.
female labor force. tion system more closely to the needs

“I believe that every woman should


be working and earning money. She
should be financially independent
because it is one of her rights to also
be the provider for the family. Work
will give every woman strength,
independence, and self-respect.”
— Head of a women’s welfare association in
Al Qassim*

Booz & Company 17


WHAT SHOULD The Ministry of Commerce and
Industry can play a critical, historic
The Ministry of Commerce and
Industry should capitalize on its posi-
BE DONE BY THE role in Saudi Arabia’s economic tion as a bridge to the private sector
MINISTRY OF progress by leading efforts to incorpo-
rate women into the labor market. By
and bolster support for women’s busi-
ness initiatives and self-employment.
COMMERCE AND orienting and encouraging the private By encouraging private institutions and
INDUSTRY sector to support women’s integra-
tion into the economy, the ministry
funds to support women’s economic
growth through loans and grants, the
can effect real change, helping the ministry can tap into a powerful and
Kingdom take its rightful place in the renewable source of financial energy—
global marketplace. one that will propel the economy
forward far into the future.
Going forward, the ministry should
en­ergetically enforce and implement In addition, the ministry should
the Council of Ministers’ ground- pro­mote cross-sector partnerships as
breaking 2004 decision to eliminate a key strategy in the promotion of
the wakil requirement. Although women’s role in the Saudi workforce.
the ministry took bold steps by Women’s contributions to the labor
doing so, real pro­gress will depend market should be encouraged through
on the policy’s full implementation. programs promoting entrepreneur-
Effective business management is ship, professional advancement, and
a key component of a competitive relevant skills.
economy; restrictions on autonomous
decision making within the labor Entrepreneurship can be stimulated
market impede Saudi Arabia’s ability by the development of robust microfi-
to realize its full economic po­tential. nance programs. These programs help
Women’s capacity to make indepen- low-income women grow their own
dent business decisions will con­- businesses by providing them with
tribute directly to the Kingdom’s access to financial services including
economic growth. loans, insurance, and money transfers.

18 Booz & Company


How Some Arab Countries Promote Women’s Economic Integration

Algeria and Oman: Gender discrimination is formally prohibited in the


workplace, and laws in these two countries provide for equal pay for equal
work.

Bahrain: In March 2005, the Supreme Council for Women announced a


“national strategy for empowerment of Bahraini women,” which aims to
achieve full participation of women in the workforce and enable their access
to leadership positions in both the public and private sectors.

Morocco: In 2006, Morocco adopted a national strategy on gender equality


with a new labor code that strongly endorses the principles of equality and
nondiscrimination in the workplace. As a result, women’s access to public-
sector jobs significantly improved.

Tunisia: Tunisia passed a law in 2008 allowing women to balance family and
professional life, and allowing some female employees in the public sector to
work part time while still receiving two-thirds of their salary.
In addition, the ministry should facili­
tate channels for funding, in order to United Arab Emirates: The UAE has actively promoted the presence of
provide women at all stages of busi- women in the workplace. As a result, 41 percent of public-sector workers are
ness development with the capital nec- women.
essary to increase the efficiency of their
economic activities. In coordina­tion Yemen: In 2003, the government adopted a national strategy for gender
with the Ministry of Social Affairs, the equality; the Ministry of Labor developed a women’s employment strategy
Ministry of Commerce and Industry and the Finance Ministry created channels for gender-responsive budgeting.
should also support women’s traditio­ Source: International Labour Office, “Institutions and Policies for Equitable and
nal income-generating activities such Efficient Labor Market Governance in the Arab Region,” 2008, p. 8
as food processing and marketing and
the production of handicrafts. This can
be accomplished through the estab-
lishment of cooperatives as well as by
facilitating the distribution of goods.

Indeed, the ministry—working in co-


ordination with the Ministry of Edu­
cation, the private sector, and NGOs—
should focus on developing women’s
ability to enter and advance through
the ranks of the market, in addition
to their capacity for self-employment.
Training programs aimed at empow-
ering women with confidence, skills,
expertise, and technical know-how
will allow them to advance to manage-
rial, decision-making positions in a
variety of sectors—helping to further
the country’s Saudization policy.

Booz & Company 19


Conclusion As Saudi Arabia looks to develop a
knowledge-based economy, it needs to
an eye toward ensuring that women
can work autonomously, with appro-
invest in the education and training of priate training and fair workplace
all its citizens. Women, who currently practices in place. The Saudi public
make up only 14.4 percent of the education system must be revamped
na­tional workforce, represent a valu- to prepare women for the digital
able yet untapped source of energy marketplace, and strong support sys-
for the new economy. Investing in tems for women must be established.
women’s education, training, and Going forward, a special unit should
pro­fessional assimilation will yield be established to handle female labor
enormous re­wards, both today and issues at the Ministry of Labor, and
far into the future. women should be prepared for posi-
tions at the highest levels of decision
Working together, the Saudi govern- making and responsibility. These mea-
ment, the private sector, and NGOs sures will ensure that the Saudi labor
should ensure that legislation pro- force is robust, capable, and equipped
motes women’s equal participation in to deal with tomorrow’s challenges—
the labor market. Existing legislation and reap its opportunities.
must be rigorously implemented, with

20 Booz & Company


Endnotes
1 Central Department of Statistics and Information, Ministry of 19 The Eighth Five-Year Development Plan, 2005–09; Al Eqtisadiah,
Economy and Planning; Saudi Arabian Monetary Agency (SAMA), May 16, 2009, p. 24.
Forty-Fourth Annual Report, August 2008, p. 230. 20 Ministry of Labor; SAMA, Forty-Fourth Annual Report, 2008;
2 Ministry of Economy and Planning, Statistical Yearbook, 43rd
Al Hayat, March 8, 2009.
edition, 2007. 21 SAMA, Forty-Fourth Annual Report, 2008.
3 SAMA, Forty-Fourth Annual Report, 2008, p. 242; P.K. Abdul 22 The World Bank, “Middle East and North Africa: Gender
Ghafour, “Job Seekers in Private Sector Urged Patience,” Arab Overview,” 2007, pp. 18–19.
News, March, 30, 2009; Arabian Business.com, March 30, 2009. 23 The Eighth Five-Year Development Plan, 2005–09.
4 Ministry of Economy and Planning; U.N. Development 24 Al Eqtisadiah, April 12, 2009.
Programme (UNDP), “Millennium Development Goals,” Kingdom 25 ProQuest; EEEIU Views wire New York September 27, 2005.
of Saudi Arabia, 2008. 26 Arab News, November 12, 2008; Saudi Gazette, April 18, 2009.
5 Ministry of State for Federal National Council Affairs, “Women in 27 Al Nahda Philanthropic Society for Women, Riyadh, 2009,
the UAE: A Portrait of Progress,” 2008. www.alnahda-ksa.org.
6 Kuwait Ministry of Planning, Statistics and Census Sector, 2008. 28 King Abdul Aziz Women’s Charity Association, Buraidah, Al
7 Qatar Statistics Authority, Labor Force Survey, 2008; Bahrain
Qassim, Report 2009.
Labor Market Regulatory Authority, Labour Force Survey, 2008; 29 The Centennial Fund: Annual Report, 2007; Statistics Report, 2009.
Malaysia Quarterly Report of Labour Force Survey, third quarter 30 Arab News, January 8, 2008; ALJ 2009.
2008. 31 Arab News, January 23, 2007; Women Living Under Muslim
8 Saudi Ministry of Economy and Planning, Statistical Yearbook,
Laws website: www.wluml.org.
43rd edition, 2007. 32 Al Riyadh, March 9, 2009
9 SAMA, Forty-Fourth Annual Report, 2008, p. 214. 33 Mona AlMunajjed, Women in Saudi Arabia Today (St. Martin’s
10 Arab News, March 30, 2009.
Press 1997), p. 82.
11 Al Eqtisadiah, May 16, 2009, p. 24. 34 Mona AlMunajjed, Saudi Women Speak: 24 Remarkable Women
12 Arab News, March 30, 2009.
Tell Their Success Stories (Arab Institute for Research
13 Ministry of Education, UNDP, “Millennium Development Goals,”
and Publishing 2006), p. 25.
KSA, 2008, p. 41. 35 Al Eqtisadiah, January 21, 2009.
14 UNESCO, Institute for Statistics, 2007, www.unesco.org. 36 Al Eqtisadiah, May 16, 2009, p. 24.
15 Al Eqtisadiah, March, 9, 2009. 37 Al Hayat, April 7, 2009.
16 International Labour Organization (ILO), “Breaking through the

Glass Ceiling: Women in Management,” (update) 2004, p. 1. * Quote on page 8 is from Arab News, November 12, 2008; quote
17 Ministry of Civil Service; SAMA, Forty-Fourth Annual Report, 2008.
on page 10 is from Arab News, March 30, 2009; all other quotes
18 The Eighth Five-Year Development Plan, 2005–09, p. 334.
are from personal interviews with the author.

About the Author

Dr. Mona AlMunajjed is a


senior advisor with Booz &
Company’s Ideation Center
in Riyadh. She specializes in
social issues and has worked
with various international
agencies on programs and
projects related to social
development. She focuses on
activating the economic and
educational role of women in
the Arab region.

Booz & Company 21


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