World Bank: Saudi Arabia’s Non-Oil Sectors Continue to Grow, Women’s Participation in Workforce Doubles

The World Bank (WB) report titled “Structural Reforms and Shifting Social Norms to Increase Women’s Labor Force Participation” revealed the latest economic developments in the Gulf Cooperation Council (GCC) countries. The report indicates that the efforts towards economic diversification in the region have started to show positive results, but there is still a need for further reforms.

According to the report, the number of workers in the Saudi private sector increased by approximately 153,300 by the end of the first half of 2023 compared to the end of the first half of 2022, with the total number of workers being around 2.3 million. The report also highlights that the participation of Saudi women in the workforce has doubled within six years, rising from 17.4% in early 2017 to 35.3% in the second quarter of 2023.

The report focuses on the significant increase in women’s participation in the Saudi workforce since 2017. The Kingdom has seen an increase in women’s participation rates despite their age group or educational level. Providing job opportunities for Saudi women in various sectors of the economy has led to a decrease in the unemployment rate. The report indicates that this positive development results from the effective reform campaign initiated by Saudi Vision 2030, which has significantly contributed to increasing women’s workforce participation.

The report highlights a projected decline in real GDP growth for 2023, attributed to the Kingdom’s voluntary reduction in oil production as per the OPEC+ alliance agreement. Anticipated is a 1.5% drop in the domestic product of oil activities during the first half of the year. Despite this, the report forecasts that non-oil activities will mitigate the decline in oil output, with an expected 5.9% growth in non-oil GDP. This growth is underpinned by the Kingdom’s flexible financial policies aimed at boosting economic growth rates, diversifying the economic base by emphasizing non-oil activities, empowering the private sector for economic leadership, and implementing Saudi Vision 2030 programs.

Khaled Al-Hmoud, the World Bank’s Senior Economist, remarked on the significant enhancement in non-oil sector performance across GCC countries, emphasizing its role in generating job opportunities in various sectors and geographic regions within these nations. Johannes Koettl, another World Bank Senior Economist, highlighted Saudi Arabia’s impressive strides in promoting women’s empowerment within the labor market, considering them as valuable lessons for the Middle East, North Africa, and bey

ond.