The increasing role of women in the private sector in Saudi Arabia
By Ghada Aldawood, Human Resources Manager, TASC Outsourcing
The Vision 2030 reforms in Saudi Arabia aim to increase women’s engagement in the workforce to 30% and significantly reshape women’s roles in the private sector. These changes, aimed at creating a society where everyone can pursue their passions, have led to a more diverse workforce.
The Saudi government has made substantial strides in removing barriers and creating opportunities for female participation in the workforce. From lifting restrictions on women’s mobility, such as the driving ban, to easing guardianship laws, the reforms have paved the way for greater female participation in the public and private sectors.
The transformative shift in Saudi Arabia is genuinely remarkable. The country has been ranked number one out of 190 economies regarding economic and social progress for women. Women are now receiving advanced degrees and enrolling in STEM fields, a clear sign of the promising future of gender diversity in the country.
A growing labour force
From 20% female participation in the Saudi labour force in 2018 to 33% in 2020, women have become increasingly visible in sectors ranging from healthcare and education to finance and technology. This increasing diversity and inclusivity in the Saudi workforce are not just a statistic but a testament to the inspiring progress in gender diversity, paving the way for a more balanced and equitable society.
Government initiatives like Saudisation and localisation policies have significantly promoted gender diversity in the private sector. These initiatives testify to the government’s commitment to inclusivity and impact on the workforce.
Notably, female entrepreneurship has flourished in this environment. With the freedom to initiate and manage businesses, women own 40% of the country’s small and medium-sized business startups. This surge contributes to the Saudi economy and empowers women to assume leadership roles and foster innovation within the private sector, promising a brighter economic future for Saudi Arabia.
Moreover, various programmes have been launched to promote and bolster female entrepreneurship. For instance, the General Authority of Small & Medium Enterprises (Monshaat) has rolled out a loan guarantee programme and regulations to ease the administrative burden on SMEs in Saudi Arabia.
The Badir Technology Incubators and Accelerators Programme also offers workshops and training to instil entrepreneurial spirit among female university students. These initiatives are crucial in fostering a supportive environment for female entrepreneurs in Saudi Arabia.
Turning challenges into opportunities
Despite advances, challenges remain. There is still a gender gap in leadership positions, especially in the private sector in Saudi Arabia. Even though more women have entered the workforce than ever, the historical gender imbalances remain.
In 2016, Saudi Arabia had the most significant gender imbalance in labour force participation among G20 countries. Even today, the leadership disparity can be attributed to long-standing cultural norms, biases in hiring and promotion practices, and a lack of mentorship opportunities.
Another obstacle is for women to try to balance work and family responsibilities. Initiatives like the Qurrah programme, which supports working mothers, are steps in the right direction. However, there is still much to be done regarding offering flexible working arrangements and access to childcare services for women.
An empowered environment
Fortunately, transforming sectors like the hospitality industry have shown how change is possible. Saudi women now make up 22% of the total workforce in the tourism and hospitality sector, whereas just five years ago, significant stumbling blocks limited this participation.
Take Red Sea Global as an example of this transformation. It is committed to pioneering vocational training for women in the sector. By rethinking talent development from programme design and partner selection to talent oversight and assisting with job placements, this initiative shows the potential of the dynamic market in Saudi Arabia.
As women become more active in Saudi Arabia’s private sector, the Vision 2030 reforms show the capacity across the country. Yes, challenges remain, but massive progress has been made in a short space of time. Saudi women are poised to make significant strides in their careers and will reshape the future workforce.
Featured image: Saudi Arabia has been ranked number one out of 190 economies in terms of economic and social progress for women. Credit: H. Baida
Ghada Aldawood is an accomplished Human Resources Manager at TASC Outsourcing, where she expertly plans, coordinates, and supervises the recruitment and onboarding of new associates.
As the Senior HR GRO and Administration Specialist for the Saudi Arabia region, Ghadah is instrumental in crafting tailored solutions for clients and enhancing internal support for current and prospective employees. She serves as a key liaison between clients and employees and provides strategic advice to business executives, contributing to effective organisational planning and development.
Ghada Aldawood: https://sa.linkedin.com/in/ghadah-aldawood-751795167
Last Updated on 5 months by News Desk 2
