New Pathways Opened for Saudi Women

Localization strategies support female employment opportunities in the Kingdom of Saudi Arabia

By: Melissa Goertzen, Staff Writer

ARTICLE IN A GLANCE

• In September 2013, Saudi Aramco, GE and Tata Consultancy Services (TCS) launched the first all-female business process services center located in Riyadh, Kingdom of Saudi Arabia.
  
• Specifically, the initiative promotes a strong commitment to education and career opportunities for women in the Kingdom.
• The trend towards female sales representatives serving female customers is not confined to retail environments.

In September 2013, Saudi Aramco, GE and Tata Consultancy Services (TCS) launched the first all-female business process services center located in Riyadh, Kingdom of Saudi Arabia. It is estimated that the venture will create more than 3,000 jobs for professional women working in human resources, accounting, finance, and supply chain management services.

The announcement reflects the growing commitment in “Saudi Arabia’s localization strategies to diversify the Kingdom’s economy and enable the growth of a viable employment sector.” The overarching goal of the initiative is to provide support knowledge to corporations in the Kingdom as they adopt business and operating models that focus on core competencies.

The Saudi Gazette reported on the launch ceremony in Dhahran, headquarters of Saudi Aramco. During a keynote address, President and CEO Khalid A. Al-Falih discussed the company’s strategic intent: “In addition to the array of manufacturing and industrial jobs, services are an even bigger creator of wide ranging employment through an extensive range of office functions. In recent decades, the world, including Saudi Arabian enterprises, has been outsourcing these functions offshore. It’s time to bring those jobs home.”

Chairman and CEO of GE, Jeffrey Immelt, added: “GE is committed to partnering with the Kingdom in helping to achieve their social and economic growth aspirations and goals. Today, Saudi Arabia is placing high emphasis on creating jobs for its youth and women and we are proud to be supporting female employment opportunities in the Kingdom, offering placement opportunities and world class training programs.”

In the coming years, the three companies will partner with Saudi universities to launch specialized training programs that further promote the development of business-related skill sets and job creation within the region. Specifically, the initiative promotes a strong commitment to education and career opportunities for women in the Kingdom. All stakeholders involved agree that supporting female professionals will contribute to long-term economic progress.

The work being done by Saudi Aramco, GE and TCS hint at larger business and economic trends moving across the Kingdom of Saudi Arabia. As the Arab News reports, “many Saudi women have taken up the challenge of working in the marketplace by sticking to working hours, dealing professionally with customers and showing the necessary skills to manage workplace issues.”

A growing number of retail shops are staffed by female employees. Their roles within these operations are diverse and include postings as cashiers, accountants and sales representatives. In addition, many bring valuable skill sets that promote sales and customer satisfaction. For instance, “many Saudi women workers are bilingual and have basic training in customer relations skills required to sell more goods and provide quality service.”

Recently, the Arab News found that women are being given responsibilities that were previously assigned to male employees. For instance, at commercial malls women were seen closing shop at 2:30 a.m. in accordance with Ramadan timing. When interviewed, one worker said, “a woman closing a store is just about a change in mindset. This is an ordinary job in today’s technological age. We have automatic electrical shutters that roll down at a click. Anybody can click a button and it should not be gender specific.”

The Arab News spoke with Mahmoud Ahmed, a cosmetic store owner, and found hiring women in shops that feature women’s products leads to increased sales. Ahmed says, “women have proven that they can do well in their role as cashiers and sales representatives. They are doing an excellent job in cosmetics and personal clothing stores.”

The trend towards female sales representatives serving female customers is not confined to retail environments. Financial institutions have also discovered that hiring professional women in service and accounting roles has created an increasingly large female client base.

A report published by the Boston Consulting Group in 2010 stated that women in the Middle East controlled approximately $500 billion, or 22 percent, or the region’s total assets in 2009. Many of these clients want sophisticated banking services aimed at high-level investments. However, in the past many women have been reluctant to use such services because most financial advisory positions were given to men. The Saudi Gazette reported that in compliance with Islamic principles, many women are reluctant to discuss such topics with men outside their family circle.

Saudi Arabia is taking control of the development of women-only bank branches. For instance, the Kingdom’s National Commercial Bank now has 46 women-only branches. Also, finance firms such as Al Rajhi Capital launched initiatives specifically for women including the Ladies Wealth Management Division and the Al Jawharah Ladies Fund. Both target women looking to diversity investments and grow their wealth.

The World Bank estimated that a third of women-owned businesses in the United Arab Emirates (UAE) generate over $100,000 a year. In comparison, only 12 percent of women-owned companies in America clear this mark on an annual basis. However, as the Saudi Gazette reported, women in the UAE focus investments within the Gulf Arab region “because they know those markets and find them accessible and safe.”

While the business and economic environment is providing greater options for Saudi women, analysts say that more women need to reach senior levels in the banking industry to develop a greater diversity of services that appeal to women and their financial needs. Nida Raza, director of capital markets at Unicorn Investment Bank, now known as Bank Alkhair, said that venture capital funds that “invest in women-only businesses, Islamic pension funds and education funds for children would be particularly attractive to women.”

In many cases, women search for financial options that allow them to invest in products that benefit their daughters. Others dream that their daughters will find employment within the finance industry.

In an interview with the Saudi Gazette, a female of the National Commercial Bank said that she hopes to invest in financial products for her three daughters, all under the age of 6. “I’m thinking of just opening accounts for them right now but maybe in the future, I can help them open a business as well…Maybe they’ll be future financial advisors,” she said.

The increasing number of finance services targeted towards women, as well as new career aspirations for the next generation, indicate a general trend towards professional opportunities for females in the Saudi Arabia’s business sector. As the Kingdom continues to focus its strategic efforts on localizing business and production, there seems to be little doubt that women will play a role in strengthening the economy.

“We are helping to build the nation’s capacity as it moves towards a knowledge economy by maximizing local content, adding value through integrated industrial parks, and promoting economic diversification and entrepreneurship. In light of the demographic realities, this comprehensive framework offers a winning formula to create jobs,” says Al Falih.

Melissa Goertzen is an information manager and freelance writing living in New York City. In June 2013, she began work on a two-year assessment project for Columbia University that analyzes the e-book landscape and publishing trends in academic communities. To learn more, please visit her website at melissagoertzen.wordpress.com.

Photo courtesy to The Telegraph & The New York Times