RIYADH: As the kingdom continues to transform economically and socially with a host of new institutions, ministries, and mega and giga projects, a big part of that change is the growth of the private sector.
In February this year, this non-oil component showed the highest growth since 2015, the Kingdom’s Purchasing Managers’ Index reached 59.8 from 58.2 in January.
Private sector growth in Saudi Arabia is led by small and medium-sized enterprises, many of which are led by women in the kingdom.
Saudi women were running their own businesses long before the implementation of Vision 2030 social reforms. However, the acceleration and growth in the sector – driven by an increasing number of female entrepreneurs – can be attributed mainly to changes in the Kingdom’s opening up to the world.
“I founded my consultancy Nichi Arabia 13 years ago and now I’m investing in women-owned startups,” Marriam Mosali, a Saudi lifestyle journalist and founder of communications agency Nichi Arabia, told Arab News.
“I was able to see firsthand the difference in the whole process; from legal registration to staffing and training support through programs like Hadaf and Tamher,” she added.
According to Saudi Arabia’s General Authority for Statistics, Mosali emphasized that the kingdom is not only increasing its share of women in the labor force – from 17.4 percent to 33.6 percent – but also in the world’s entrepreneurship sector.
“Whether it’s tourism or technology, there are many sectors that attract women and we’re seeing more women taking on entrepreneurial roles,” Mosali said. The last two years.”
Mosali says she’s next targeting “the discerning consumers coming out of Gen Z in Saudi Arabia,” and as such, she said in September she’ll invest in two women-owned businesses that focus on clean beauty and fashion.
“I’m investing in women,” Mosali said. “What makes me happy right now is being able to invest in the next generation.”
According to the Brookings Institution, between 2018 and 2020, the female labor force participation rate in Saudi Arabia increased by 64 percent.
This growth was rarely seen anywhere else in the world.
According to the report, between 2018 and 2020, Saudi women’s labor force participation rate, i.e. those working or looking for work, increased from 19.7 percent to 33 percent.
Historically, Saudi Arabian women’s labor force participation rate has been low, but under the revised Vision 2030, women’s small and medium-sized enterprises have been supported by various programs, giving women less freedom and business incentives.
In the year According to a 2022 report by the kingdom’s official SME General Authority, Monshaat, 45 percent of such businesses are currently run by women in Saudi Arabia.
“This is concrete evidence that women are leading the way in Saudi Arabia and in various sectors, from retail to the food industry to technology,” respected Saudi fashion designer Honeida Serafi told Arab News.
In the year She launched her eponymous fashion brand in 2016 and focuses on pre-a-porter and couture lines, who see her brand as a way to empower women psychologically and start their own fashion businesses.
Serafi recently designed the dress worn by the future queen of Jordan, Saudi Arabia’s Raja Al-Seif.
“My journey has definitely been challenging,” Serafy said. “When I started my brand in 2016, the kingdom was not yet on the development line of Vision 2030. I struggled a lot because at that time the Saudi fashion industry lacked everything – from raw materials to technical information, guidance, support, etc. So I started looking for external consultants, suppliers at the international level, from scratch.
After a period of trial and error, Serafi began producing seasonal collections to show in Paris and established an international reputation for the brand.
“From a marketing point of view, the public was very interested in my story,” she says. “I am the first Saudi to create an international ready-to-wear brand and dress celebrities in Hollywood. I am one of those women when I talk about the brand’s mission to empower women.”
From all corners of the kingdom, women are becoming the driving force behind Saudi Arabia’s growing SME sector.
In the town of Baljurashi in the Al-Baha region, Sharifa Algamdi converted her traditional house into a boutique hotel.
A retired math professor, she plans to restore her family’s turn-of-the-century home three years ago.
It was easy to revive it and build her career after the 2030 Vision reforms came into effect, as it allowed her to freely shop with other men for fabrics and other goods as well as hotel guests.
Both Mosali and Serafi emphasized that the government’s support to the private sector has led to the creation of an accelerator body with an incubator, accessible information, financial support and credit facilities to develop various sectors in the kingdom.
Serafi is clear that the Saudi Fashion Commission – established in February 2020 – and the Ministry of Culture have led the development of the sector.
“I was part of the support system myself, providing mentorship, guidance and practical assistance to small and emerging brands,” says Serafi. “And now the announcement of the first Saudi Fashion Week, which will not only involve emerging Saudi brands, but also other industries for that big event.”
Raniyah Siraj, half Saudi, half Scottish, will host the 6th Dimension of the Arts platform in 2021 with a focus on art consultancy, concept creation and design, catering to businesses and individuals.
“Women in Saudi are very responsible, but they have been for centuries,” Siraj told Arab News.
Serge had a company she started in 2009 before the reforms, but it was a completely different process back then.
“It was one of the first companies after Saudi Arabia enforced women to have their own business registration,” she explains, “but you still need a male body in your company. He is registered as a sole trader.
“Since then, you would have wanted the name of your father, brother, son, husband, which has been deleted.
“Everything has changed dramatically. There are now hundreds of thousands of opportunities available to Saudi women.
“Now is a great time for Saudi women to be at the forefront of entrepreneurship and business.”
How does the growing power of women’s small and medium-sized operators in Saudi Arabia compare with its Gulf Cooperation Council neighbors?
The difference, says the kingdom’s Saudi women, is the focus on investing in and growing local Saudi brands, rather than relying on foreign direct investment.
According to Serafi: “Vision 2030 sets goals for the development of Saudi citizens, which means that the kingdom’s economy is being built not only on foreign investors in Saudi Arabia, but on local businesses.”
“SMEs are being pushed financially, technically and technologically to grow beyond the kingdom and become globally competitive.”
It is a model that not only empowers women, but also fosters a new Saudi pride and identity – one that works with foreign investment but also seeks to assert its Saudi authenticity. Women are a big part of this push.
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