COMBATING POVERTY THROUGH "PRODUCTIVE FAMILIES": A

C O N F I D E N T I A L SECTION 01 OF 02 JEDDAH 000422 SIPDIS DEPT FOR NEA/ARP, DRL, EEB E.O. 12958: DECL: 10/25/2019 TAGS: ECON KWMN PGOV SA SOCI SUBJECT: COMBATING POVERTY THROUGH "PRODUCTIVE FAMILIES": A SAUDI EFFORT TO PUT WOMEN TO WORK (AT HOME) REF: A. 09JEDDAH0050 ¶B. 09JEDDAH0132 JEDDAH 00000422 001.2 OF 002 Classified By: Classified By: Consul General Martin R. Quinn for reason s 1.4(b) and (d) Summary and comment -------------- ¶1. (C) On October 23-24 the Jeddah Chamber of Commerce and Industry (JCCI) in collaboration with four ministries hosted a two-day forum on "Productive Families". The forum -- organized by one of the JCCI's lameduck female board members -- was originally intended to package the idea of women working in a way that would not threaten religious conservatives, female employees of the JCCI told us several months ago. But the actual sessions -- with the exception of frank comments from former JCCI Chairman Saleh Al-Turki -- avoided discussion of expanding employment opportunities for professional women and focused instead on the production of handicrafts by home-based businesses. The initiative -- presented as a way to address poverty and unemployment and strengthen the Saudi economy -- seems unlikely to achieve these goals. End summary and comment. From consumers to producers -------------- ¶2. (U) The two-day "Productive Families Forum" sponsored by the Jeddah Chamber of Commerce and Industry (JCCI) in conjunction with the Makkah governor and ministries of Education, Social Affairs, Labor, and Commerce focused on combating poverty and increasing family productivity by helping men and women start small businesses -- especially for handicrafts -- from the home. Speakers stressed the need to transform Saudi families from consumers to producers, from zakat-receivers to zakat-payers. Panelists included President for the Saudi Commission for Tourism and Antiquities Prince Sultan bin Salman, who argued that developing tourism, especially historic and cultural tourism in small towns, could boost the market for crafts. Not quite a vehicle to promote women entering the laborforce -------------- -------------- ¶3. (C) Several months ago, female employees of the JCCI, as well as the director of a leading charity that participated in the event, the Abdulatif Jamil Fund, told PolOffs that the forum was intended as a vehicle to promote Saudi women entering the workforce. The idea was to use inoffensive terminology such as "productive families" and stress the family unit contributing to the national economy to head off religious conservatives' objections to women working. The actual program -- coordinated by an outgoing female JCCI boardmember -- instead focused on the small-scale production of handicrafts by home-based family businesses. An exhibit adjacent to the event hall showcased the handicrafts of Saudi women, most of whom spoke English. Frank comments from ousted JCCI Chairman -------------- ¶4. (U) Only one speaker directly and forcefully called for women's entry into the workforce -- former JCCI chairman (and President of NESMA Holding Company) Saleh Al-Turki, who was ousted by Minister of Commerce and Industry Alireza early this year (reftels). As JCCI Chairman, Al-Turki supported a variety of initiatives to promote women working both at the JCCI and elsewhere. Al-Turki began by observing that there is significant poverty in the Kingdom. The government spends millions of riyals educating women but then they are barred from working. Only 5% of Saudi women are in the labor force -- a remarkably low rate compared with other nations, including GCC countries like Kuwait and the UAE. All members of a family -- including women -- have a right to work, Al-Turki concluded to enthusiastic applause from the women's section. JEDDAH 00000422 002.2 OF 002 Resentment of foreign workers -------------- ¶5. (U) Throughout the forum both presenters and audience members complained about foreign workers in the Kingdom. One panelist recalled that during his childhood all craftsmen were Saudi. Saleh Al-Turki bluntly countered that Saudis cannot find work because they are not skilled enough for the available jobs. (Note: Al-Turki's own company, NESMA, employs some 22,000, 75% of whom are laborers. Only 10%, on the management side, are Saudi nationals. End note.) Comment -------------- ¶6. (C) The forum represents an admirable effort to reduce poverty and unemployment by encouraging Saudis -- especially women -- to be productive and earn money. While this initiative may provide training programs and subsidies for handicrafts production -- which may appeal to some women looking to supplement their families' incomes while working flexible hours from home -- it is unclear how these products will be marketed and sold. Several participants noted that e-commerce is not well established in the Kingdom, and internet penetration, remains relatively low. There is no real sign that this initiative will propel women into higher societal roles any time soon. The focus of the Productive Families Forum, along with the clear gender separation of the event, underlines the difficulty in changing the thinking of conservative Saudis toward opening professions to women and increasing women's participation in the workforce. End comment. QUINN