JEDDAH, 18 January 2004 — The first day of the 2004 Jeddah Economic Forum began yesterday with a breakthrough for women. The keynote speech was made by a leading Saudi businesswoman, Lubna Al-Olayan, chief executive officer of Olayan Financing Company. She presented her analysis of economic and social issues in the Kingdom.
Aside from her career as an important figure in the decision-making process of Olayan Financing Company for over 30 years, she has also encouraged the participation of Saudi women in the economic sector. In the company, some 20 women are employed in various departments ranging from making analyses to handling equity markets.
Lubna Al-Olayan’s speech was concise and clear. “My vision is of a country with a prosperous and diversified economy in which any Saudi citizen, irrespective of gender, who is serious about finding employment, can find a job in a field in which he or she is qualified. This would lead to a thriving middle class and one in which all Saudi citizens, residents or visitors to the country feel safe and can live in an atmosphere where mutual respect and tolerance exist amongst all, regardless of their social class, religion or gender.”
Although the Saudi economy in 2003 seemed positive, Lubna Al-Olayan explained, the economic obstacles facing today’s market must be addressed so that the outlined vision is realistic. Revenue for 2003, for example, exceeded expenditure by SR45 billion, foreign assets were at SR213 billion, GDP growth of 6.4 percent. A strong real estate market performed well with a stock market capitalization of SR590 billion — the largest in the Middle East, as large as Belgium’s.
Today Saudi Arabia faces growing unemployment. The current unemployment rate, according to estimates, stands at 9.6 percent and above — excluding females. “We have a birth rate in excess of 3 percent, which is among one of the highest in the world with an average of six children per family. Approximately 60 percent of our population is under the age of 20; the number of young men and women entering the job market far exceeds the number of jobs being created in both the private and public sectors,” she said.
To increase employment opportunities, Lubna Al-Olayan suggested that the private and public sectors coordinate by training Saudis in all fields. “We in Saudi Arabia have adopted the attitude that the government will always provide for, take care of and shield, us — sometimes even from normal market forces.”
Creating jobs thus became an easy task, where foreign workers took on jobs to strengthen the Saudi market. “At present , there are between 3.5 to 3.7 million foreign workers who last year sent more than SR60 billion out of the country. Over the last 10 years, some SR585 billion has been sent out by expatriates.”
Another idea to help increase employment opportunities, according to Lubna Al-Olayan, would be major changes in the way the Kingdom’s economy operates.
There are eight areas requiring change, she pointed out. The privatization process must be speeded up and there must also be increased transparency and accountability in the way it is done.
Another is the need to speed up the legal process since it now takes three to four years to introduce regulations and implement them. This is discouraging for foreign companies who then go to neighboring countries and cause the Kingdom to lose jobs. Related to that is the need for clear and consistent regulations.
Lubna Al-Olayan called on the government to enforce regulations clearly and transparently. There is a need to provide more incentives for career opportunities for men and women. Added to that is the need to create fertile ground for local and foreign companies establishing small and large businesses by facilitating an easy flow of transportation and entry visas.
She also asked that the government stop being overly protective of the local labor market by which she meant it should not be so difficult to lay off unproductive employees.
Finally, she called for the private sector to abandon the philosophy of progress without change. She pointed to the need for the private sector to work with the government in defining needed skills and bringing the curriculum in line with the needs of a modern work environment.
She also emphasized the need to focus on human resources and appoint the right person for the right job without relying on personal favors or connections. She urged the private sector to lead by example in implementing Saudization, providing training and also hiring women. She urged the private sector to become good corporate citizens with a sense of social responsibility.
At the end of the speech, a question and answer session was held. Dr. Nahed Taher, senior economist at the National Commercial Bank, asked whether the “targets” and goals should be “declared” first, before the private sector makes any changes. Lubna Al-Olayan stressed that there should be more cooperation between the sectors.
Another question dealt with how the private and public sectors could help train Saudis for various jobs.
A question by Arab News on whether the government should introduce a minimum wage given that Saudis jobseekers cannot compete with expatriates went unanswered. Lubna Al-Olayan thought it would be better to direct it to the minister of labor and social affairs.