Good progress in Middle East workplace gender diversity, but still work to do: Experts at WEF

Updated 06 April 2019

Good progress in Middle East workplace gender diversity, but still work to do: Experts at WEF

LONDON: Governments and companies in the Middle East and North Africa region are making progress in workplace gender diversity, but there is still more work to be done experts at the World Economic Forum on the MENA region said on Saturday.
During a panel discussion at the forum, titled the “Rise of Arab Women” and a press briefing asking the question: “What more can be done to drive gender diversity?” experts discussed how gender diversity can play a crucial role in driving business sustainability and improving financial performance.
Moderating the “Rise of Arab Women” panel, PwC Middle East Senior Partner Hani Ashkar said: “Diversity is integral to sustainability and overall success. Boosting the number of women in work is not just a moral imperative but also has a measurable impact on the bottom line.
“This is not going to be easy, and there is no doubt that this will require a real commitment from the public and private sectors alike.
“We will need to work out what works for our region and how to implement it effectively, and at scale, but this pales in comparison to when we look at the cost of doing nothing and continuing as we have,” he said.
During the discussion panel Princess Dina Mired of Jordan said women have so many skills to offer the workplace, and the best way for companies in the region to tap into that would be to make workplaces a meritocracy — also speaks about paternity leave allowing men to share the burden of making families — currently it’s all burdened on women.
Mariam Al-Foudery, group chief marketing officer at Agility said that, while people have a certain perception of women finding it harder to break down barriers in the Middle East, the region actually respects and understands the importance of the family dynamic more than any other region in the world and can lead the way in helping both men and women build families.
PwC surveyed more than 3,000 women and men across Saudi Arabia, the UAE and Egypt for the “Women in Work Index — Insights from Middle East and North Africa” report, which provides policymakers with perceptions and insights on the regional workforce.
During the press briefing on the report, PwC partner Norma Taki highlighted the fact that the MENA regions collectively losing an estimated $575 billion a year due to the legal and social barriers that exist for women’s in joining the workforce.
Her fellow panel speaker and PwC partner David Suarez added that an increase in gender diversity would expand and enrich the talent pool and is a “vital requirement,” particularly in Gulf countries — including Saudi Arabia and the UAE — who are looking to move beyond oil and diversify their economies.
Recent research in the region showed that the UAE was a beacon for promoting a more gender balanced workforce, with a dramatic increase in females in the workplace to 40.6% in 2018 from 29.2% in 1990.
Taki explained how women make up 66% of public-sector workers, with 30% in leadership roles. When survey respondents were asked if they agree with the statement: “My employer treats females equally when it comes to promoting from within”, some 30% of women and 37% of men in the UAE strongly agreed.
In Saudi Arabia, meanwhile, dramatic change occurred over the past 12 months. 2018 was a landmark year for women in the Kingdom, with women getting behind the wheel in June 2018, the Saudi military taking applications from women and granting women the right to open their own businesses without a guardian’s permission.
Suarez praised the UAE and Saudi Arabia, but highlighted that in Egypt cultural attitudes and gender stereotypes would take longer to change, explaining that many men are still resistant to the idea of women working outside the home, which partly explains why female labor-force had increased very little since 1990, when it was 21.3% compared with 22.3% in 2018.
Reducing the gender pay gap is one imperative, but the findings of PwC’s survey reveal that Middle Eastern respondents place an equally strong emphasis on equality in progression in the workplace and acquiring leadership roles.
Additionally, 66% of respondents said they felt that governments should intervene in private-sector companies and set targets for gender diversity.
Existing national policies included a draft law in the UAE last year to ensure men and women receive equal pay. The UAE also introduced three months’ paid maternity leave for government employees last year, increasing pressure on the private sector to keep up. The Saudi Arabian government’s goal to increase female participation in the workforce to 30% as part of its Vision 2030 is underway.


INTERVIEW: Saudi Arabia’s Red Sea project to set ‘new global standards in sustainability’, says CEO

Updated 42 min 16 sec ago

INTERVIEW: Saudi Arabia’s Red Sea project to set ‘new global standards in sustainability’, says CEO

  • John Pagano tells of his plans to help save world’s corals by developing ‘amazing land’ on Saudi Arabia’s western shores
  • “What really caught my attention was the passion and enthusiasm of young Saudis for Vision 2030," says Red Sea Development Co's CEO

DUBAI: John Pagano has been involved in mega-projects around the world, but “none of them will have the impact this will have on Saudi Arabia,” he said.

“This” is the Red Sea Development Company, of which he is CEO. Along with the plan to build a futuristic metropolis at NEOM in the northwest of the Kingdom, and the Qiddiya leisure resort near Riyadh, it is one of the headline initiatives of the Vision 2030 strategy to diversify away from oil dependency.

The Red Sea project is special, Pagano said. Not only because Saudi Crown Prince Mohammed bin Salman fell in love with the area as a youth and was a frequent visitor, and not only because of the stunning natural beauty of the 28,000 square kilometer region of lagoons, archipelagos, canyons and volcanic geology between the two small towns of Al-Wajh and Umluj on the western coast.

Canadian-born Pagano told of how he was “sold” on the idea of running the Red Sea project when Saudi Arabia lured him out of a youthful retirement that mainly involved flying airplanes. “What really caught my attention was the passion and enthusiasm of young Saudis for Vision 2030. It was really quite intoxicating. I thought it could be quite a lot of fun to be part of the transformation of a country,” he said.

Opening up the tourism and leisure industries is a major part of the transformation. At the moment, the Kingdom derives between 3 and 4 percent of gross domestic product (GDP) from this sector, most of it religious tourism from Hajj and Umrah pilgrims. Globally, tourism represents 10 percent of GDP and accounts for 10 per cent of the world’s workforce.

The Red Sea project will eventually inject SR22 billion ($5.8 billion) into the Saudi Arabian economy and lead to the creation of 70,00 jobs directly and indirectly in the Kingdom’s workforce, Pagano said.

“You have this huge opportunity to contribute and help the diversification process by developing tourism and a tourism sector which to a large extent does not really exist,” he said.

The project is certainly tourism, but with a big difference. Definitely out are the package holidays and Costa-style beach frolics. It will not be “Club Med on the Red,” in the words of one of his aides. “We are not seeking to be Dubai,” Pagano said.


BIO

BORN - Toronto, 1959

EDUCATION - BSc in mechanical engineering, University of Toronto

CAREER

  • Managing director, Canary Wharf Contractors, London
  • President, Baha Mar Development Company, Bahamas
  • Managing director, Canary Wharf Group, London
  • Principal, Old Fort Capital Investments, London
  • CEO, Red Sea Development Company

“It will be a luxury tourism destination that sets new global standards in sustainability,” Pagano said. “The idea is not to build as much on it as possible, and make as much money as we can. The idea is to protect it for generations to come.”

Luxury tourism is the fastest-growing segment of the global market, and high-rolling tourists are willing to pay top dollar for one-of-a-kind experiences. Exclusivity will be set by limiting the number of visitors. Of the 90 islands in the region, only 22 are going to be developed, and annual visits will be capped at one million in 2030, when completion is scheduled.

Nine islands are deemed to be so crucial to the ecology that they will not be built on at all, and access will be carefully controlled. One, Al-Waqqadi island, looked like the perfect tourism destination, but was discovered to be the breeding ground for the rare hawksbill sea turtle. “In the end, we said we’re not going to develop it. It shows you can balance development and conservation,” Pagano said.

If you want to get him really excited, ask about coral. “The rest of the coral reef systems around the world are dying, but this one — the fourth largest in the world — is thriving. We’re trying to figure out why. We’re working very closely with King Abdullah University of Science and Technology (KAUST) and experimenting with coral growing, trying to understand the unique DNA of coral found in this part of the world.

“If you look at it, the Red Sea has warmer sea temperatures and higher salinity values, yet the coral thrives. We’re trying to work out why, and to the extent we solve that mystery, the ambition would be to export that to the rest of the world — help save the Great Barrier Reef or severely damaged Caribbean coral,” he said.

The Red Sea project is home to a number of endangered species, including the hawksbill sea turtle. (Courtesy: Red Sea Project website)

Sustainability is being built into the project’s structure. It will be 100 per cent carbon neutral and powered by renewable energy via solar and wind power, and will make use of advanced technology to solve the storage problems that have so far proved to be obstacles to renewable energy. “The technology is available but nobody has ever done it on this scale before,” he said, pointing to plans to use solar power to make ice by day and use it for cooling at night. There are even plans for “artificial trees” to aid the carbon-capture process.

Pagano is working on another project with KAUST — “Brains for brine” — that seeks to address the problem of excess salination of sea water resulting from the desalination processes widely used in the Kingdom.

But building what will eventually be 8,000 hotel rooms, an airport, a small town for the 10,000 workers on the project, on the coast of one of the busiest maritime navigation channels in the world, presents its own environmental challenges.

He was speaking the week after an Iranian tanker had leaked oil into the Red Sea, but said that commercial sea lanes were far away from the project, and big vessels could not enter the shallow lagoon system anyway.

On-site construction will be kept to a minimum by the use of prefabricated units built elsewhere in the Kingdom and then shipped to the Red Sea for assembly and installation on the islands. He will have to have 3,000 hotel keys by 2022, when phase one of the project is complete and ready to welcome the first of 300,000 annual visitors.

The technology is available, but nobody has ever done it on this scale.

Those guests are estimated to come roughly 50 percent from Saudi Arabia and other Gulf countries, and 50 percent from the rest of the world, with a big proportion from Europe and the experience-seeking markets of Asia.

A big draw of the Red Sea region is that all-year temperatures and humidity are lower than other parts of the region, notably the Arabian Gulf. “It’s much more like a southern European climate,” he said, allowing for year-round business.

Pagano promises visitors “a constellation of experiences,” but what kind of resort will they arrive at? “We had plans for a special visa-on-arrival procedure just for us, but of course we don’t need that now that there is a Kingdom-wide tourist visa,” he said.

When the tourists get there, the resort will feel different from the rest of Saudi Arabia. It will be treated as other “special economic zones” in the Kingdom, with more relaxed social norms and an environment attractive to international visitors, he said.

“There are currently no plans to serve alcohol, but that is not our call, it’s a broader issue. But even without alcohol, there are a potential 1.5 billion tourists in the world Muslim demographic,” he said.

The Red Sea Project is designed to enhance the natural environment for future generations. (Courtesy: Red Sea Project website)

A transformational project of such ambition obviously does not come cheap, and Pagano admits to “many billions of dollars” in total construction and development costs. So far, the bills have been met by the Public Investment Fund, which has committed all the equity capital.

But Pagano is now in the market for “conventional senior debt” in a package that could reach SR10 billion ($2.6 billion). With the big infrastructure project — bridges, roads, a new airport — currently under way and contracts being announced at increasing pace — a fresh batch are promised during the Future Investment Initiative in Riyadh later this month — those funds are needed, he said, and could be in place early next year.

“Plus, we are talking to a lot of investors and looking at the possibility of getting them into the project,” he said. French hotel group Accor is already involved, and he expects most of the leading global hospitality brands to play some part in it too. Contracts to build and operate the utilities on the development are currently out to tender to a number of consortia.

It is all part of the transformation under way in the Kingdom that appears to be unstoppable. By 2030, Saudi Arabia is aiming to attract 100 million visitors a year, with the elite heading to the Red Sea area to sample the “amazing piece of land” that Pagano is developing.

“It’s ambitious, but feasible. It’s starting from a low base and the vision is unprecedented,” he said.