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.


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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