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 [email protected]

Dubai Karim Sabbagh Partner +971-4-390-0260 [email protected]

Riyadh Ghassan Barrage Partner +966-1-211-0300 [email protected]

Dr. Mona AlMunajjed Senior Advisor, Ideation Center +966-1-211-0300 [email protected]

2 Booz & Company 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.

Booz & Company 1 THE STATE In 2007, the active workforce in Saudi labor force has nearly tripled, from Arabia comprised 8.2 million people, 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 population, includes people who are percent of the nationals in the labor 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)

2 Booz & Company Today, more than 90 percent of Saudi to Deputy Minister for Labor Abdul WOMEN’S women actively participating in the Wahid Al-Humaid, most unemployed EMPLOYMENT workforce hold a secondary qualifica- women are highly qualified: 78.3 tion or a university degree.8 In 2006, percent of them are university gradu- AND EDUCATION 57 percent of university graduates in ates.10 By contrast, 76 percent of Saudi Arabia were women,9 and this unemployed men have only a second- rising education level is a major factor ary education or lower.11 in the increase of female participation in the labor force (see Exhibit 2). The national system of education is failing to prepare Saudi women for This is not to say that simply getting a competitive roles in the labor force, degree enables Saudi Arabia’s females even at the highest levels; of the to join the labor market—unfortu- nation’s unemployed women, more nately, it does not. Indeed, according than 1,000 have a doctorate.12 As a

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

Booz & Company 3 result, they have been largely limited to nities for women but also by women’s female illiterates finding an active role traditional fields of work such as teach- voluntary unemployment. Saudi in the labor market, more than 1 mil- ing and service businesses. In 2007, nationals are selective in their choice lion Saudi women are unable to enter 93 percent of all female university of jobs, often refusing unskilled, the workforce because of their lack graduates specialized in education and manual, or low-paying work. of education or appropriate skills.14 humanities,13 while a shortage of jobs These women—some of whom lack in those fields has resulted in Saudis If young and educated Saudi women the support of a husband or family— seeking work outside their country. are having difficulty obtaining mean- suffer heavy social and economic More than 300 Saudi female gradu- ingful and competitive employment, repercussions. ates have already accepted teaching the Kingdom’s uneducated women jobs in Bahrain, 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

“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*

4 Booz & Company challenged: Recent regional unem- as teachers in schools and at the uni- The public sector is the largest em- ployment rates indicate that rural versity, mainly in the public sector. ployer of Saudi women, providing areas offer the fewest employment Although Saudi laws and regulations greater job security and more advanta- opportunities. Unemployment is based on the Shari’a guarantee a wom- ges than the private sector does. Wom- highest in the region of Hael, where an’s right to work, they stipulate that en currently make up about 30 percent it reached 35 percent, followed by she should work in an appropriate of government employees.17 Indeed, of the Eastern Region at 32 percent, environment—that is, not mixing the total population of working Saudi Makkah al Mukarramah at 29 per- with men or being exposed to harass- women, around 95 percent are employ- cent, Al Madinah al Munawarah at ment. Sex segregation by occupation ed in the public sector—a significant 28 percent, the region of Asir at 23 is therefore prevalent in Saudi society: concentration of the active, educated percent, and the lowest, Al Qassim, at Women are concentrated in certain female workforce. Eighty-five percent 17 percent.15 Even though Al Qassim professions that are seen as feminine of all working women are in educa- is a conservative region, it has a pool and remain in less distinguished posi- tion, in both teaching and administra- of educated women who are working tions than men.16 tive positions (see Exhibit 3).18

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

0

1996 2005

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

Booz & Company 5 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

6 Booz & Company Current At the national level, the government things, the plan called for a study has taken a number of promising investigating women’s needs in the Initiatives to legislative steps. The Saudi labor labor market; awareness campaigns Promote Saudi code grants every citizen—regardless promoting women’s employment; the of gender—the right to work, and 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. and the provision of support services In 2004, the Council of Ministers 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.

Booz & Company 7 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*

8 Booz & Company 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

Booz & Company 9 The Saudi government is making one of wife and mother, the move MAJOR major efforts to improve the status toward greater female participation CONSTRAINTS of women in terms of employment. in the labor force has been met with However, a number of social, legal, skepticism, debate, and even hostil- ON SAUDI educational, and occupational factors ity.33 Although many Saudi men WOMEN JOINING continue to hinder Saudi women’s full welcome the opportunity for women participation in the labor market, to contribute economically, others fear THE LABOR preventing the Kingdom from reach- 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*

10 Booz & Company 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

Booz & Company 11 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*

12 Booz & Company POLICY The Saudi government must use the and success in the workforce. This same energy and skill that it has 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 as other incentives such as family- resource that may be less tangible, 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 monitoring strategy that ensures their an untapped and important source 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 awareness about employment issues, and successes. Women should be made WHAT SHOULD ultimately helping to create policy that aware of their legal rights so that they BE DONE BY THE rigorously ramps up women’s partici- may properly take advantage of them, pation in the labor market as well as and the Saudi public should receive GOVERnMENT AT bolstering literacy, educational, and positive messages about the valuable THE NATIONAL vocational skills. In creating the task role of women in the labor force. force, whose board should consist of First and foremost, public awareness POLICY LEVEL equal numbers of men and women, 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 a follow-up mechanism to monitor stra­tegically leverage expertise and 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. its impact. In doing so, it would act as the engine 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 In order to accomplish this, the public of employers is crucial in a country WHAT SHOULD education system—particularly at the where a traditional focus on religious BE DONE BY THE primary and secondary levels—should and cultural studies is leaving gaps be revamped so that it is more flexible between nationals’ skills and compa- MINISTRY OF and responsive to the needs of the 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 The Ministry of Commerce and Industry can play a critical, historic 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- and bolster support for women’s busi- rate women into the labor market. By ness initiatives and self-employment. COMMERCE AND orienting and encouraging the private By encouraging private institutions and INDUSTRY sector to support women’s integra- funds to support women’s economic tion into the economy, the ministry 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 As Saudi Arabia looks to develop a an eye toward ensuring that women Conclusion knowledge-based economy, it needs to 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 Arab News, March 30, 2009. 34 Mona AlMunajjed, Saudi Women Speak: 24 Remarkable Women 12 Al Eqtisadiah, May 16, 2009, p. 24. 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.

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