World Bank: Saudi Arabia Leads Arab World in Advancing Women's Workforce Participation

Safaa El-Kogali, the World Bank's Country Director for the Gulf Cooperation Council (GCC) countries (Asharq Al-Awsat)
Safaa El-Kogali, the World Bank's Country Director for the Gulf Cooperation Council (GCC) countries (Asharq Al-Awsat)
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World Bank: Saudi Arabia Leads Arab World in Advancing Women's Workforce Participation

Safaa El-Kogali, the World Bank's Country Director for the Gulf Cooperation Council (GCC) countries (Asharq Al-Awsat)
Safaa El-Kogali, the World Bank's Country Director for the Gulf Cooperation Council (GCC) countries (Asharq Al-Awsat)

In a pivotal era marked by remarkable advancements in the economic involvement of women in the Gulf, specifically in Saudi Arabia, Safaa El-Kogali, the World Bank's Country Director for the Gulf Cooperation Council (GCC) countries, underscores the pivotal role of implementing precise policies and programs.

These measures, she contends, are crucial for fostering and sustaining the escalating participation of women in the workforce.

“Firstly, there has been a shift in economic and financial expectations from previous reports,” said El-Kogali as she addressed the novel aspects of this year’s report on women’s employment.

“Secondly, the report includes a new section on women’s participation in the workforce, highlighting a noticeable increase in female participation in the labor force in GCC countries over the past decade,” she added.

However, according to El-Kogali, no country in the GCC or the wider Middle East and North Africa region has experienced such a rapid increase in such a short period as witnessed in Saudi Arabia.

The report delves into developments in Saudi Arabia, where female participation in the workforce more than doubled between 2017 and 2023, rising from 17.4% to 36%.

“It is crucial to note that this increase encompasses various age groups and educational levels, contributing to a decline in overall unemployment rates, particularly among Saudi women,” El-Kogali explained, adding that “the majority of jobs held by Saudi women were in the private sector and spanned across all sectors.”

Attributing the rise in women’s contribution in the Gulf, especially in Saudi Arabia, to three factors, El-Kogali emphasizes that social norms surrounding women’s workforce participation were ready for change due to shifts in societal attitudes, reinforced by the government’s strong commitment and a robust communication campaign regarding women’s economic empowerment.

Moreover, major legal reforms facilitated more women joining the workforce, with new programs promoting women’s employment paving the way for increased female participation.

Another factor, according to El-Kogali, is the structural economic changes that generated a necessary demand for labor from companies willing to hire women.

She noted that the coronavirus pandemic acted as a positive catalyst for the demand for female Saudi workers, creating a fundamental driver for rapid transformation.

On her expectations for the future increase in women’s contribution to the Saudi economy, El-Kogali said: “I am convinced that the changes we have witnessed in recent years are not temporary.”

“The shift is evident across all age groups – it's not just young Saudi women who are more willing to enter the workforce, but also their mothers,” she affirmed.

Highlighting that Saudi women predominantly turn to the private sector across various industries, El-Kogali emphasizes the importance of solidifying policies and programs to sustain the trend of increasing women’s participation in the workforce.

Regarding the necessary steps to maximize Saudi economic contribution, El-Kogali stressed that Saudi Arabia has made significant strides in achieving its goals over the past two years, implementing structural reforms as a testament to the government’s commitment and determination.

“The success achieved in rapidly increasing women’s participation in the workforce is just one example of what the Kingdom is doing, laying the groundwork for its desired goals,” said El-Kogali.

“Similarly, we observe a divergence between the oil and non-oil sectors in Saudi Arabia, with the oil sector contracting by 8.4%, while the latter expands by 4.3%, showcasing robust efforts in economic diversification,” she highlighted.

The Country Director also emphasized that current economic results in Saudi Arabia reflect the fruits of ongoing exceptional efforts within the diversification agenda aligned with the Kingdom’s national plan for transformation, “Vision 2030.”

El-Kogali underscored the importance of Saudi Arabia remaining committed to the path of reforms and diversification.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.