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‘End of driving ban’ to boost Saudi women economic role

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RIYADH: In this file photo, a Saudi woman practices reversing a car in
Riyadh ahead of the lifting of a ban on women driving in Saudi Arabia in
the summer. – AFP

DUBAI: The end of a decades-old female driving ban is expected to bring an
economic windfall for millions of Saudi women, making it easier for them to
work and do business. Taghreed Ghazala, who owns a chain of beauty salons,
sees the move as a huge step forward for businesswomen like her in the
ultra-conservative kingdom. “I have many drivers that I pay to transport my
employees around,” she told AFP ahead of the end of the ban on Sunday. “Now
I don’t need them anymore. My business will save money, effort and time and
I can invest them to grow my business faster.”

Saudi women are severely under-represented in the jobs market, with a
staggering 31 percent unemployment rate among the female workforce. They
make up just under 23 percent of the national workforce of six million,
according to official figures—mainly because of their restricted mobility.
A recent survey by the Chamber of Commerce of the Red Sea city of Jeddah
showed that transportation was considered one of the top barriers holding
Saudi women back from joining the labor market. Experts expect that the
lifting of the driving ban will not only help raise female participation
and employment rates but also create new jobs.

‘More than just jobs’

“I believe the decision will do more than just provide more job
opportunities for women,” said Ihsan Bu-Hulaiga, head of the Riyadh-based
Joatha Business Development Consultants. “It will also boost the female
economic participation rate and cut the overall national jobless rate
because most of the unemployed are women and many of them are university
graduates,” Bu-Hulaiga said. Saudi Arabia’s “Vision 2030” reform program,
the brainchild of Crown Prince Mohammed bin Salman aimed at weaning the
kingdom off its dependence on oil, seeks to boost women’s representation in
the Saudi workforce to 30 percent by 2030.

Allowing women to drive is also expected to sharply boost both car and
insurance sales but is likely to reduce the number of expatriates and
increase traffic jams and demand for energy, analysts said. Dubai-based PWC
Middle East Consultancy estimates that by 2020, the number of Saudi female
drivers will reach three million, in addition to Saudi Arabia’s 9.5 million
male drivers. The kingdom has a population of 32 million people, including
12 million expatriates, according to official figures. Car sales are
expected to grow by nine percent annually until 2025 as more women get
behind the wheel, compared to three percent annual growth in the past four
years, PWC said.

‘Transformative’

The decision will also result in less spending on male drivers hired to
chauffeur women—and potentially leave foreigners employed in those
positions without work. “The decision will reduce the number of expatriate
private (family) drivers which will positively impact the Saudi family
budgets regarding drivers wages, housing and health insurance,” Fadhl
al-Buainain, a Saudi financial and banking consultant, told AFP. The move
will also have an immediate impact on the daily lives of Saudi Arabia’s
working women.

For more than 15 years, Raghda Bakhorji used to wait every morning for a
driver to pick her up, and take her to the King Abdulaziz Center for World
Culture in Dharan, where she works as a coordinator for an outreach
program. “Being able to drive will be a transformative experience to my
routine and lifestyle in general,” says the young career woman. “In my
case, driving will also probably let me save around 3,000 riyals ($800), on
a monthly basis”, she said. Buainain, the consultant, said transportation
costs consumed almost a quarter of employed women’s earnings.

Saudi Arabia spends more than 25 billion riyals ($6.7 billion) on the
annual salaries of around 1.38 million foreign private drivers, according
to official figures. In addition there are expenses for their entry and
residence permits, housing and healthcare. But the decision could also have
some negative impacts such as traffic jams caused by an increase in the
number of vehicles on the roads, said Buainain. In February, the
energy-dependent kingdom allowed women to open their own businesses without
the consent of a husband or male relative, in a bid to expand a
fast-growing private sector. – AFP

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