Arab News - 03 August, 2010
A large portion of the Kingdom’s wealth is in the hands of
its women who are believed to be sitting on cash totaling $ 11.9 billion.
“The Kingdom has a veritable treasure trove of human and financial capital in
the form of its women who control a large portion of the country’s wealth,”
said a report released on Monday by the Cayman Islands-based asset management
firm Al-Masah Capital.
Women constitute almost 45 percent of the country’s population, and have a
literacy rate of 79 percent. Yet, only 65 percent of them are employed,
revealing the huge potential for women employment. In fact 78.3 percent of
unemployed women are university graduates.
The report, titled “The Saudi Woman — A catalyst for change,” stated that
women could become a major growth driver for the country’s diversification
policy with their considerable wealth, which is lying idle, being channeled
into the country’s money supply.
“Increasing the contribution of women in key economic sectors can speed up
economic diversification. Effective channeling of the huge funds held by
Saudi women that currently yield negligible returns into enterprises or
investment activities can earn profitable returns as well as boost money
supply,” said Shailesh Dash, founder of Al-Masah Capital.
Saudi women are not alone. Women in the Middle East
controlled 22 percent or $ 0.7 trillion of the region’s total assets under
management (AUM) in 2009. The region, consequently, ranked fifth globally in
terms of AUM controlled by women.
“Women in Saudi Arabia
account for a potential pool of human and financial capital with the power
and ability to bring about significant social and economic change. But, this
can only be done within the right parameters,” he said, adding that the
change ought to be evolutionary.
“This will not be effective and long lasting if it is done outside the
current norms and social etiquettes of Saudi
Arabia. For this change to be effective,
it needs to grow and develop organically within the boundaries of what is
acceptable and understandable in Saudi society.
“The true potential lies in this development happening in parallel with
positive growth in the mindset of society. Only then will we see the real
impact of the Saudi woman,” said Dash.
Saudi Arabia also had the lowest
national women labor participation rate, which was put at 20.1 percent in
2009 compared to neighboring countries like Qatar,
the United Arab Emirates and Kuwait.
Toward that end, establishing a just workplace for both men and women can
generate significant economic value. Greater educational support for women to
take up jobs in IT and communications can increase the government’s return on
investments in the country’s education system.
While the government was the largest employer of women in the country, their
exposure to the private sector was minimal accounting for a mere 0.8 percent
of total private sector employees.
Women resources can help aid Saudi Arabia
in its diversification efforts from oil wealth, fostering employment
opportunities on the one hand and a business-enabling environment for women
entrepreneurs on the other. This is the need of the hour given their
significant human capital and financial muscle, said Dash, adding that public
and private sector policy should be targeted toward it.
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