Saudi women await a positive role in economy

From international legislative commitments to NGOs dedicated to women's welfare, Saudi Arabia's policies and programmes are promising steps towards full participation of women in its labour market.

However, with less than 15 per cent of its national labour force comprising women, the Kingdom has still an enormous source of untapped potential for its labour force.

According to a report by Booz & Company, titled 'Women's Employment in Saudi Arabia: A Major Challenge', legislative, social, educational and occupational constraints prevent women from fully participating in the Saudi labour market. Overcoming these constraints will be essential if the kingdom is to create a dynamic-market economy.

Sweeping reforms in the national educational system are needed as a major step in preparing Saudi women for competitive jobs. The implementation of labour market reforms and labour law reforms should be supported by an environment that encourages the positive role of Saudi women in the labour market and introduce women to senior market positions.

Since 1992, women's participation rate in the Saudi national labour force has more than doubled, from 5.4 per cent to 14.4 per cent. However, the 26.9 per cent unemployment rate for female Saudis in 2008 was nearly four times higher than that for Saudi males.

Talking to Emirates Business, Dr Mona Al Munajjed, Senior Advisor, Booz & Company, said: "Although over 90 per cent of Saudi women actively participating in the workforce hold a secondary qualification or a university degree, simply getting a degree does not guarantee employment – 78.3 per cent of unemployed women are university graduates, and more than 1,000 have a doctorate degree."

By contrast, she added, 76 per cent of unemployed men have only secondary education or less. "In 2007, 93 per cent of all female university graduates specialised in education and humanities, while a shortage of jobs in those fields has resulted in Saudis seeking work abroad. More than 300 Saudi female graduates have already accepted teaching jobs in Kuwait, Qatar, and Bahrain."

Uneducated women are even more challenged, especially in rural areas. In 2007, Unesco estimated that 20.6 per cent of Saudi women over the age of 15 were illiterate. With only three per cent of female illiterates finding an active role in the labour market, over one million women find themselves unable to enter the labour market due to lack of education or skills.

Dr Munajjed said: "Education for girls is based on traditional ways of learning and the curriculum focuses on religion and the study of Arabic. The curriculum needs to be more in touch with the times and the changes in the Saudi society and the global job market at large. It should provide girls with skills for the jobs market.

"We need more focus on maths, science, foreign languages, particularly English, which is taught but the time allotted to it is not enough. Education for girls should also focus on ICT and use of computers should be at all levels of school. Arts, accounting, administrative and business studies should be included in the curriculum.

"At the university level, women's degrees are concentrated in education and teaching, human sciences, natural sciences, and Islamic studies. Of all female university graduates in 2007, 93 per cent had degrees in education and teaching or human sciences."

Saudi laws, which are based on the religious Islamic Shariah framework, guarantee a woman's right to work, but stipulate that she should work in an appropriate environment – such as not mixing with men or being exposed to harassment.

Gender segregation in professional jobs is therefore prevalent. Women are concentrated in professions that are seen as feminine and remain at less distinguished positions than men.

Dr Munajjed said: "The public sector is the largest employer of Saudi women, and women currently represent around 30 per cent of government employees. About 95 per cent of working Saudi women are in the public sector. Some 85 per cent are in education – in both teaching and administrative positions – six per cent in public health, and four per cent in administration.

"Only five per cent of working Saudi women are employed by the private sector, the majority in a narrow range of jobs such as private business and banking. At the same time, the number of women working in the private sector increased by 27 per cent over two years, from 40,000 at the beginning of 2006 to 51,000 at the end of 2007. The number of women working in the banking sector increased 280 per cent from 972 in 2000 to 3,700 in 2008." As part of the Saudisation process, the Ministry of Labour has recently identified several opportunities tailored to women such as receptionists, tailors, banquet-hall employees, nutritionists, governesses, photographers, beauticians, caterers, and hospitality and recreation-industry workers.

Among women who manage their own business investments and enterprises, 97 per cent are in wholesale and retail trade, finance and business services, and construction. Women also own 12 per cent of the firms in the country and 16 per cent of the large manufacturing firms. On its part, Saudi Arabia has taken many positive steps aimed at promoting women's advancement within the labour market. At the international level, the kingdom has ratified three United Nations conventions that promote gender equality in the workforce.

At the national level, the government has taken a number of promising legislative steps. The Saudi labour code grants every citizen the right to work, and stipulates that firms must provide all workers opportunities for training.

A 2004 regulation established women's sections within the government, and employment and training initiatives. It made a groundbreaking decision to eliminate the need for the permission of a wakil, or male guardian, to enter into business transactions.

In 2006, the labour code was revised to include measures relating to maternity and medical care leave, nurseries, vacation and pension provision. Though the Saudi government is making major efforts to improve the status of women in terms of employment, a number of social, legislative, educational and occupational factors continue to hinder their full participation. For example, implementation lags on existing legislation at both the international and national levels.

While rights exist in theory, they have largely not been enforced, for example, the continuing requirement for businesswomen to have a wakil in spite of laws eliminating this requirement. Another legal constraint is the fact that women are not permitted to drive, making it difficult for them to commute to work without a male driver.

The lack of good quality basic education for females lies at the heart of labour market segmentation, the report said. The public sector educational system does not provide girls with the skills they need to compete in the labour market. It relies on rote learning, and does not sufficiently promote analysis, skill development, problem solving, communication and creativity.

There is also a shortage of education in areas vital to the development of new knowledge-based economy, such as maths, science, technology and computers.

Occupational segregation is strongly evident, with women largely restricted to traditionally female-oriented fields of the public sector. There is lack of opportunities for them in the decision-making and management positions as less than one per cent of decision-making posts are held by Saudi women.

Family-friendly policies such as flexible working hours, parental leave, child-care facilities, and transport are not in place.

Saudi Arabia's women represent an untapped and important source of power for the economy. Incorporating women fully into the labour market may not be achieved overnight, however, it can, and must, be achieved if the kingdom wishes to transform itself into a knowledge-based economy.

What Saudi is doing for women

The kingdom's Saudisation policy has identified positions particularly suitable for women.

The Eighth Five-Year Development Plan (2005–2010) emphasised the need for more employment and advancement opportunities for women, stressing the importance of their participation in the economy.

In 2007, plans were announced to allocate one-third of government jobs to women and to create additional job opportunities for them.

Government initiatives focusing on job creation and training include telecommuting arrangements, along with plans to establish 17 technical colleges for women and the opening up of the tourism industry to women.

In addition to these initiatives, various non-governmental organisations have led efforts to create economic opportunity for poor and uneducated women through vocational training and small business loans.

Suggestions for labour Ministry

Implement infrastructural support for working women, including flexible hours, parental leave, child-care facilities, and expand the availability of nurseries in workplaces. Create centres that offer career guidance and development services for women joining the labour market.

Establish a timetable for implementation and a framework to monitor progress. Modify programmes based on evaluation and feedback, ramping up data collection and employing up-to-date statistical techniques.

Data collection should include household surveys. Institutions across all sectors of the labour market should be analysed in regard to the skills in demand.

For Education officials

Reform the curriculum so that learning materials emphasise on the ability to identify, analyse and solve problems and to adapt to new tasks.

Prepare women to work in fields such as information technology and engineering.

Offer open-entry/open-exit courses and distance-learning opportunities at women's universities in major cities and provinces.

Revise their curriculum to portray women as a vital part of the country's economic development. Encourage the creation of a culture of continuous education and training for women.

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