Riyadh – Mubasher: Saudi Arabia has permitted women to drive for the first time in the Kingdom history, a step that was received by a lot of cheer and encourages; however the impact of such decision on the country’s growth will not be big.
Lifting woman driving ban will increase the Saudi gross domestic product (GDP) by 0.1% annually, according to a report released by Oxford Economics.
“The labour participation rate among Saudi women stands at just over 22%, remaining the lowest globally and is almost 8% below that in Oman, which has the second-lowest rate in the Gulf region.”
But the increase in female workers will boost the Saudi unemployment rate, which is already as high as 12.8% of the domestic workforce, Oxford Economics’ data showed.
The government aims at “reducing the unemployment rate to 7% over the next 12 years… but the target will likely be missed unless the government can persuade nationals to either work for more competitive wages or enrol in skills training programmes to enhance their employability.”
