Vision 2030: Empowered Women, Transformed Kingdom

Saudi Arabia is undergoing a remarkable transformation across various sectors. Fuelled by ambitious reforms under Vision 2030. The Kingdom’s economy is not only reaching new heights, having recently achieved trillion-dollar status, but also aiming to be among the leading economies in the world. This economic shift is driven by diversification and substantial investments, fundamentally changing the country’s economic structure and aiming at strengthening its global position.

Another key driver of this growth is the rise in female participation in the workforce through increased educational opportunities, and a more inclusive cultural environment. Saudi Arabia has implemented significant reforms to empower women economically, creating a positive impact that extends beyond 2030 vision. As a result, the country is witnessing a significant boost in economic growth demonstrating the transformative power of women’s empowerment.

In line with its 2030 vision, Saudi Arabia has implemented many policies, the most prominent is mainly toward Saudization by reducing oil dependency and diversifying the economy. Prior to 2030 vision, Saudi Arabia had a drawback in women empowerment due to certain norms and restrictive laws where opportunities for women were limited in education and employment that hindered their participation across various sectors. Additionally, a significant gap in educational access for women persisted. Even though education was accessible to women, only certain fields were considered suitable for them such as teaching and nursing.

However, since the launch of Vision 2030, there has been a remarkable transformation in education, with the number of women in higher education significantly increasing where it reached 70.9% in 2019 compared to 25.2% in 2000, as well as a broader diversification in the fields they pursue. In addition, Saudi Arabia experienced a significant growth, marked by innovative reforms benefiting women and youth. Women are now working across various sectors, becoming active contributors to the economy and sharing financial responsibilities within families, this approach supports the economy by reducing reliance on foreign workers or migrants who often remit earnings abroad, ensuring that more financial resources remain within the nation to drive local growth.

Indeed, vision 2030 has laid the foundation for sustained economic and social growth, fostering a new era of inclusion and opportunity. Several policies and programs were implemented to increase the engagement of women in the labour market. The government launched “Qurrah” program that provides a child care service for working women, part-time and remote programs for women, as well as providing a subsidy of up to 800 Saudi riyals per month ($213) for each child to support working mothers in managing both their work and family responsibilities. In addition, the government established the “Wusool Program” which is a program that covers up to 80% of the transportation for women working in the private sector. Also, the kingdom applied several initiatives that support women entrepreneurs like “the IGNITING Women’s Entrepreneurship and Innovation program” which is a collaboration between U.S. entrepreneurs and experts and Saudi’s entrepreneurs to share knowledge and build relationships to develop partnership opportunities via hybrid workshops and networking sessions. Similarly, to help women-owned small and medium-sized Enterprises (SMEs) and micro-enterprises overcome financial obstacles and launch or grow their businesses, the Authority “Monshaat”, the Social Development Bank, and the Talat Almara’a Initiative provide financial support, educational materials, and networking opportunities. Likewise, Saudi Arabia, through the Ministry of Finance, is making women’s empowerment a priority by including it in its yearly budget. This indicates that the Kingdom is aware of the role of women as vital partners in building a better future.

Moreover, key reforms include granting women the right to drive, enforcing anti-harassment laws, and limiting the Male Guardianship System, which previously restricted women’s autonomy, aim at providing them with greater legal independence. Reducing the gap between men and women, in alignment with the Kingdom’s values and principles, contributes to achieving sustainable development goals which will promote strong, sustainable, balanced and inclusive economic growth. In line with these reforms, the Saudi Ministry of Justice has significantly advanced women’ s empowerment under Vision 2030 by increasing female participation in the justice sector. Over 3,538 women are now employed with 110 in supervisory roles. Additionally, there are over 2,136 female lawyers and over 3,165 female law trainees. Women can also register as conciliators, act as legal representatives, and obtain notarization licenses, enabling them to issue legal documents and contracts. Specialized training programs and digital services via the Najiz portal further support women’s contributions to legal and judicial processes, strengthening their role in the economy and society. Additionally, women now own 45% of SMEs, showcasing their growing influence in the entrepreneurial landscape.

These reforms led to an unprecedented increase in women workforce participation that reached 34.5% in 2023, with female labour force growing from 23.2% in 2016 to 34.4% in 2022, exceeding the vision’s initial target of 30%. As a result, it was reported by the World Bank in “Women, Business, and the Law 2020” that Saudi Arabia is a top reformer globally through historical reforms granted to women that have impacted 5.5 million Saudi women, empowering them and paving the way for future generations.

As the country opens up to global markets and invests in various sectors, women are emerging as key contributors to the nation’s economic growth where their participation in the workforce increased significantly by 64% in just two years between 2018 and 2020. From the growing tourism industry to the rapidly evolving technology sector, Saudi women are breaking down traditional barriers. In the hospitality and tourism sector, job growth in Saudi Arabia between 2010 and 2020 was approximately 10% annually, much higher than the global growth rate of 2.5% during the same period. Among these, 27,108 were women, representing about 22% of the total Saudi workforce in tourism in 2018 compared to 45% in 2023. This sector contributed 6.5% of the country’s GDP in 2022, and vision 2030 is aiming for tourism to account for 10% of GDP by 2030 indicating that the country is on the right track and could even reach a higher percentage.

Recently, the country saw a huge growth in the development and Technology sector, and the Kingdom received the Global Award for Women in Technology from the International Telecommunication Union, specifically in the Information and Communications Technology (ICT) sector. In 2021, women’s participation in Saudi Arabia’s technology sector reached 28% marking a substantial increase from previous years. This growth aligns with Saudi Arabia’s Vision 2030, which includes efforts to integrate women into various fields. In health care, technology has played a pivotal role, especially through telemedicine and electronic health services, creating more opportunities for women. Since the launch of Vision 2030 in 2016, Saudi Arabia has seen a steady increase in female participation in tech, with women comprising 36.8% of science, technology, engineering and mathematics (STEM) graduates by 2018 and surpassing men in founding tech startups by 2021. Valued at over $40.9 billion and constituting 4.1% of the Kingdom’s GDP, Saudi Arabia’s (ICT) market is the largest and fastest-growing in the MENA region, and is well-positioned to become a technology service and a cloud hub with access to international connectivity through the Red Sea and the Gulf, potentially serving the European, Asian, and African markets.

Moreover, one of the key sectors in Saudi Arabia is the manufacturing sector, which represents a significant share of the country’s GDP as it contributes for almost 23% of the GDP. This aligns with the vision’s emphasis on economic diversification where the government aims to boost the manufacturing sector’s role in the economy. Women are also increasingly active in this sector, with 83,201 female workers in manufacturing in 2022.

Research indicates that empowering women significantly contributes to Saudi Arabia’s economic growth. The country faces a shortage in its domestic labour market, paired with high wages for its citizens. By integrating more women into the workforce, competition is enhanced, driving greater efficiency and productivity. This inclusion fosters diversity, stimulates innovation, and increases output across various sectors, aligning with the broader objectives of Vision 2030 to diversify the economy and reduce reliance on oil. Empowering women thus not only addresses labour market gaps but also positions Saudi Arabia for sustained economic progress.

Studies suggests that women’s empowerment in Saudi Arabia has often been framed as a strategy to enhance the country’s economic competitiveness and promote integration into the global economy. This perspective raises questions about whether such business-oriented approaches to women’s empowerment genuinely advance women’s rights and emancipation, or primarily serve broader economic objectives.

Additionally, a study, by the Council on Foreign Relations, notes that closing the gender gap in the workforce could add substantial value to economies worldwide. Precisely, it estimates that achieving gender parity in the MENA region could result in a GDP increase of $2.7 trillion by 2025. According to their research, advancing gender equality could add approximately 50% to the Kingdom’s GDP. This projection underscores the substantial economic benefits of empowering women and integrating them more fully into the workforce and economy. In addition, it was estimated that if women’s participation in Saudi Arabia is fully equal to men’s, then it will be equal to an average increase of $586 billion or $18,569 per person.

Hence, by pursuing policies that empower women and promote gender parity, Saudi Arabia can unlock its full economic potential. As demonstrated by numerous studies, investing in women leads to significant economic gains. Eliminating obstacles to women’s employment can help Saudi Arabia develop a more inventive and dynamic economy. The empowerment of women in Saudi Arabia will have far-reaching long-term effects where it is an investment in the nation’s future generations. In a positive feedback twist, women who are educated and empowered are more likely to raise children who are also educated and powerful. In addition, by dismantling gender norms and advancing equality and understanding, women’s empowerment can strengthen societal cohesiveness. As women’s influence increase, they can help shape cultural norms and values, resulting in a more progressive and inclusive society. This not only benefits individual women but also contributes to the overall prosperity and sustainability of the country. This does not only benefit individual women but also contributes to the overall well-being and sustainable future of the Kingdom.

However, while studies indicate that Saudi Arabia’s commitment to women’s empowerment can significantly boost its economy, it is crucial to address several challenges that could hinder this progress. Women’s empowerment may be impeded by cultural resistance that stems from deeply embedded conventional norms and beliefs. Women’s chances can be restricted and their capacity to become financially independent can be hindered by economic inequality, which includes pay disparities and restricted access to financial resources. As per the Women, Business, and the Law 2024 report by the World Bank, Saudi Arabia’s legal system scored 50 out of 100, which is less than the global average of 64.2. Furthermore, a supportive frameworks score of 36.7, which is lower than the global average of 39.5, which suggests that there are insufficient mechanisms in place to guarantee that these laws are implemented effectively especially when it comes to child care, parental leave, and government-sponsored assistance for female entrepreneurs. Even though this is a step in the right direction, more work is required to bring it into compliance with international standards. Despite these challenges, Saudi Arabia’s dedication to women’s empowerment marks a turning point. By making investments in women’s education, economic prospects, and legal protections, the Kingdom may realize its full economic potential and build a more successful and inclusive society.

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