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.

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The Government's Heart is in the Right Place
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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.

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But Absent An Implementation Mechanism
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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.

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Has the World Really Changed for Saudi Women?
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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).

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A Long Way to go
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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.

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Comment
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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