VZCZCXRO8189
RR RUEHDE RUEHDH RUEHDIR
DE RUEHRH #1514/01 3181112
ZNR UUUUU ZZH
R 141112Z NOV 09
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC 1911
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE

UNCLAS SECTION 01 OF 02 RIYADH 001514 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR NEA/ARP 
 
E.O. 12958: N/A 
TAGS: ECON SCUL SOCI ELAB EFIN SA
SUBJECT: SAUDI WOMEN'S QUIET PROGRESSION 
 
Summary 
------- 
¶1. (SBU) Saudi Arabia is the biggest economy in the Middle East 
despite the fact that women constitute only 10 percent of the 
workforce.  The SAG continues to create education opportunities for 
women, but the private sector seems to lack both the infrastructure 
and ability to absorb the growing number of female graduates.  The 
SAG's efforts to create employment and investment opportunities for 
women are often hampered by company reluctance and ideological 
resistance from parties that have yet to come to terms with the idea 
of women in the workforce.  In spite of these difficulties, female 
business leaders continue to push for new opportunities.  Many are 
optimistic that, with King Abdullah's progressive attitude towards 
women and his determination to invest in Saudi human capital, 
business and employment opportunities for women will continue to 
expand.  End summary. 
 
Signs of Improvement in Economic Opportunity 
-------------------------------------------- 
 
¶2. (SBU) In 2008, Saudi Arabia was the world's 23rd largest economy, 
with a GDP of 467 billion USD and a population of 24.8 million, 50 
percent of whom were women.  Today, 62 percent of students enrolled 
in higher education in Saudi Arabia are women.  There were 58,000 
university students studying abroad on government scholarships, 21 
percent of whom were women.  Post is told that, of this year's 4,000 
King Abdullah scholarship recipients, 60 percent are women.  In 
October 2008, King Abdullah laid the foundation for the Princess 
Noura bint Abdulrahman University, a $4 billion women-only 
institution.  It will accommodate up to 40,000 students and offer 
research programs in areas such as nanotechnology, biotechnology, 
and information technology. 
 
¶3. (SBU) On September 23, King Abdullah inaugurated the King 
Abdullah University for Science and Technology (KAUST).  KAUST is 
the first international, graduate-level co-ed research university in 
the Kingdom.  This multi-billion dollar endowment is a realization 
of a decades-long vision of King Abdullah that presents men and 
women alike with higher education opportunities. 
 
¶4. (SBU) The increase in female graduates raises the question 
whether the labor market can absorb their growing numbers.  In 
November 2007, then-Minister of Economy and Planning Dr. Khaled 
Al-Gosaibi told press that the government's 2005-2009 five year 
development plan intends to raise the percentage of women in the 
Saudi workforce from 5.4 percent to 14.2 percent.  Women currently 
constitute approximately 10 percent of the Saudi workforce, mostly 
holding jobs in education, health, journalism, and social affairs. 
Recent figures released by the Ministry of Labor (MOL) place 
unemployment among Saudi women at 21.7 percent, although this does 
not factor in a low level of female workforce participation. 
Accordingly, many economists suspect the actual unemployment figure 
is much higher. 
 
The Road to Unemployment is 
Paved with Good Intentions 
--------------------------- 
 
¶5. (SBU) In April 2004, the Saudi Council of Ministers approved a 
nine-point plan to create more jobs and business opportunities for 
women.  The plan includes opening women's sections at SAG 
ministries, allowing women to set up businesses without the 
requirement that a male guardian run the business, allocating public 
land for women-only industrial areas, helping women work from home, 
and allowing women to hold jobs in shops dealing in women-only 
goods.  The Ministry of Labor was given one year to develop a 
full-scale national plan to employ more women. 
 
¶6. (SBU) The years since 2004 saw several government attempts to 
create more jobs for women.  One anecdote helps describe the kind of 
barriers that exist.  In June 2005, Labor Minister Dr. Ghazi 
Al-Gosaibi announced a phased 2-year plan to limit sales jobs in 
women's lingerie and clothing shops to Saudi women.  To underscore 
the Ministry's seriousness and ensure compliance with the decision, 
Minister Al-Gosaibi announced that the MOL would no longer authorize 
employment visas for foreign workers in this sector.  Implementation 
required that shop owners tint or conceal their windows, employ 
Saudi women and admit female shoppers only.  However, industry 
concerns regarding the lack of trained Saudi women and the lack of 
desire on the part of many women to work long hours and double 
shifts forced the Ministry in May 2006 to postpone implementation 
indefinitely. 
 
Women in Business?  Whose Business Is It? 
----------------------------------------- 
 
¶7. (SBU) In January 2008, Chairman of the Jeddah Chamber of Commerce 
and Industry (JCCI) Saleh Al-Turki said that the lack of employed 
women in the Saudi workforce creates an imbalance in which only 
thirty percent of the population provides financial support for the 
 
RIYADH 00001514  002 OF 002 
 
 
rest.  He further said that in order to achieve a competitive 
economy, Saudi Arabia needed a highly qualified labor force to 
increase productivity and therefore increase the general income of 
the country. 
 
¶8. (SBU) Conservative commentators provide a strong counterweight to 
the calls of liberals and of elements of the government for greater 
female participation in the economy.  In March 2009, Dr. Khaled 
Al-Shamrani, Dean of the High Institute for the Promotion of Virtue 
and Prevention of Vice, told the press that he was frustrated with 
the MOL's attempts to create jobs for women.  He said he felt this 
is not an area for the MOL's involvement and that the whole issue of 
women working should be subject to the interpretations of Shari'a 
law. 
 
The Challenges of Entrepreneurship 
---------------------------------- 
 
¶9. (SBU) On October 13, Emboffs attended the Women's Annual Business 
Gala at the Riyadh Chamber of Commerce and Industry (RCCI).  The 
fact that this year's event was held in RCCI's main lobby for the 
first time reflects the Ministry of Commerce (MOC) and RCCI's 
support for promoting women's business opportunities.  Many of the 
women present agreed that the MOC and RCCI are doing what they can 
to enable female entrepreneurs to set up their businesses. 
 
¶10. (SBU) One businesswoman stated that the impediments they 
encounter in setting up businesses originate within other agencies 
(than RCCI).  She used her own conference organization business as 
an example.  As a woman, she may in principle set up a firm that 
specializes in organizing conferences provided she only employs 
women.  The MOC advised her that in order to apply for a commercial 
license, she needs to produce a rental contract for the premises 
where her firm will be located.  However, the Ministry of Municipal 
and Rural Affairs (MMRA) refuses to allow her to rent property 
without first producing a commercial license.  Like many before her, 
she expressed the view that these situations are usually caused by 
working-level SAG officials who are skeptical about the idea of 
women in business.  She also stated that her personal Saudi ID is 
not recognized or even treated as an official document except at the 
MOC, JCCI, and the Ministry of Social Affairs (MOSA). 
 
Saudi Women's Small, But Determined Steps 
----------------------------------------- 
 
¶11. (SBU) On October 28, Econ Specialist met with Deputy Chairman of 
the Riyadh Economic Forum and Chairwoman of RCCI Huda Al-Jeraisi. 
As a businesswoman in her own right, Al-Jeraisi experiences many of 
the frustrations shared by women running businesses in Saudi Arabia. 
 Her main concern is that many Saudi women attempting to enter the 
private sector lack much-needed experience.  She often encounters 
female job seekers that have advanced degrees but little or no 
experience.  Al-Jeraisi is of the opinion that Saudi women have to 
change their attitudes towards vocational training, be willing to 
seek internships and accept jobs at the beginning of their careers, 
no matter how simple, in order to build up experience, rather than 
looking to immediately head an organization. 
 
¶12. (SBU) Al-Jeraisi is currently working with members of the RCCI 
on a program to allow women to run businesses out of their homes. 
The proposal, which is in line with the Council of Ministers' 
nine-point plan, will be put forth to King Abdullah.  According to 
Al-Jeraisi the program will open up opportunities for thousands of 
Saudi women to run their businesses from home, and by so doing, help 
overcome obstacles imposed by a society that has yet to come to 
terms with the idea of women in business.  In spite of the obstacles 
ahead, Al-Jeraisi's outlook for the future remains optimistic. 
 
Comment 
------- 
 
¶13. (SBU) The scope of what King Abdullah is trying to do in 
expanding education opportunities for women in Saudi Arabia is 
ambitious.  He has already overcome significant cultural challenges, 
and these efforts are likely to pay big dividends in years to come. 
Translating that into actual gains in the workplace, however, will 
be an equally formidable task. 
 
JSMITH