Saudi Women Push for Economic Opportunities at

UNCLAS SECTION 01 OF 03 RIYADH 009441 SIPDIS SIPDIS RIYADH PASS DHAHRAN DEPARTMENT FOR EB AND NEA/ARPI ECON E.O. 12958: N/A TAGS: ELAB ECON EFIN PHUM SA SUBJECT: Saudi Women Push for Economic Opportunities at the Riyadh Economic Forum ¶1. (U) Summary: The Second Riyadh Economic Forum (REF), held earlier this month, included a lively discussion of a study critical of the job and investment opportunities available to Saudi women. The study acknowledges Saudi laws are on the books that are intended to create job opportunities for Saudi businesswomen, but criticized the absence of a reliable implementation mechanism to make them effective. A related survey of 600,000 Saudi women confirmed that the majority believed restrictive Saudi social norms still limit their personal investment decisions, job opportunities, and ability to start their own businesses. REF participants generally agreed there was a great need for technical and vocational training in order to adequately prepare Saudi women for the labor market. End summary. -------------- The Government's Heart is in the Right Place -------------- ¶2. (U) The second bi-annual REF, organized by the Riyadh Chamber of Commerce, provided Saudi women active in the business and labor sectors a forum in which to speak publicly about some of the obstacles they face. A panel discussion of a REF-commissioned study, entitled "Women's Participation in the Economy," and presented by prominent Saudi businesswoman Nadia Baashan, highlighted the gap between existing legislation to ensure women's opportunities and the government's implementation of that legislation. ¶3. (U) The study focused primarily on the impact of two recent Council of Ministers' decisions: number 63, dated May 13, 2005 and number 120, dated June 1, 2004. Ministers' Decision 63 established a high-ranking inter- agency committee to address women's issues, including economic opportunities. Decision 120, also known as the Nine-Point Plan, is a comprehensive action plan to integrate Saudi women in the workforce. It encourages Saudi government agencies to issue more commercial licenses for businesswomen and ordered the establishment of female departments in every government office, within a year of the decision's date, to ensure women could take advantage of government services and freely engage with government agencies. The Decision also tasks the Council of Chambers of Commerce and Industry to work with the private sector to create job opportunities for Saudi women. -------------- But Absent An Implementation Mechanism -------------- ¶4. (U) While the REF study acknowledges that some progress has been made; it generally characterizes implementation of the two decisions' initiatives as slow and short of expectations. The Ministry of Commerce and Industry, for example, set up a women-only department to serve Saudi businesswomen, yet this department remains understaffed and dependent on the existing men's section, which limits the ability of some Saudi businesswomen - unable to deal with a men- only office - to interact with the ministry. The Ministry of Labor only recently issued a decision to set up women's labor offices in Riyadh, Jeddah and Dhahran. The one Saudi government agency that has made the most progress in setting up a separate department to assist businesswomen, the Saudi Arabian General Investment Authority, caters only to the needs of foreign businesswomen. Dr. Baashan stressed that Saudi women need a government mechanism to ensure the effective implementation of government decisions intended to facilitate investments and open up new job opportunities. -------------- Has the World Really Changed for Saudi Women? -------------- ¶5. (U)The study, citing Ministry of Civil Service statistics, found that Saudi women comprise 30 percent of the government workforce. Almost all of these women work in the educational and health sectors or hold administrative jobs in the same areas. Saudi women's participation in the private sector is estimated at 0.58 percent. Saudi women's participation in the total workforce remains at 7 percent, according to a 2004 GCC statistic. The study did indicate, however, that commercial registrations for businesses owned or with substantial equity ownership by women increased 45 percent from 2003 to 2005. Women have also opted to invest in the stock market. According to the Saudi Capital Market Authority, the number of female-owned investment portfolios increased from 14,750 in 2002 to 155,552 in 2004. (Embassy comment: It is estimated that Saudi women - often through inheritance from their spouses - own more than 50 percent of existing bank deposits and assets in Saudi Arabia. End comment). -------------- A Long Way to go -------------- ¶6. (U) The study included a survey of 600,000 business and working women in Riyadh, Jeddah and Dhahran. Most of the business and working women surveyed strongly agreed that they have the freedom to acquire financial assets, property and stocks on an individual basis. But those surveyed also agreed that that investment loans and capital are not available to businesswomen in sectors such as real estate, agriculture, and industrial production. Most business and working women lamented that that they still do not have the ability to independently process necessary paperwork in Saudi government offices. The surveyed working women agreed that there is a lack of adequate business and vocational training for women and a mismatch between the available training and the labor market's needs. Both business and working women agreed that their investment decisions are still largely affected by social restrictions. ¶7. (SBU) Among the panelists at the REF commenting on the study were Princess Jawhara bin Fahad Al Saud, Assistant Deputy Director of Education Affairs at the Saudi Ministry of Education, and prominent businesswoman Lama Al-Akkad. The princess told the participants that there is a real need to offer Saudi women, in particular, the kind of business and vocational training that meets the needs of the labor market. Closer cooperation between the Chambers of Commerce and Industry and Saudi training institutions would help match training programs with actual private sector needs. Jawhara also called for the establishment of a high-level government authority or ombudsman to monitor how well government decisions related to women are being implemented. ¶8. (SBU) Prominent businesswoman Lama Al-Akkad spoke of the need for private and public lending institutions to support women entrepreneurs. She agreed that Saudi women need more technical and vocational training centers. She also called for participation by women in the government's decision-making process when the decisions relate to women's issues. ¶9. (SBU) Alia Al-Shilhoub, a prominent economic journalist, remarked that Saudi women still face social restrictions that undermine their ability to function independently. She cited as an example the fact that Saudi businesswomen still need a male agent to process transactions at most government agencies on their behalf. Dr. Baashan pointed out that Saudi businesswomen are left at the mercy of working-level government employees who take it upon themselves to issue their own fatwa-like edicts about which sectors are appropriate for investment by women. ¶10. (SBU) There was support for greater female participation in the economy from male participants at the REF as well. One male attendee from Jeddah remarked that as long as Saudi Arabia's social norms require women to be hidden in the backroom, there is little hope that Saudi women will make a real contribution to the economy. Another male lawyer pointed out that Islam has four main schools of thought, and while Saudi Arabia has always followed the most conservative of the four, it is time to consider a more liberal approach in order to enable Saudi women to function effectively. -------------- Comment -------------- ¶11. (SBU) Saudi business and working women still face huge social obstacles, which limit job opportunities and investment choices available to them. The rush to invest in the stock market over the past two years among a large segment of Saudi women is an indication of the interest and growing savvy of Saudi women in economic and personal fianc issues, but the road to actual business ownership and entrepreneurship is still lined with obstacles. The current economic and political climate offers an opportunity for Saudi business and working women to push for much-needed change and more effective implementation of existing laws. The open and spirited dialogue on the issue of women's economic opportunities at the RED was an indication that the issues are on the table and a healthy discussion underway. GFOELLER