Saudi Arabia Driving Decree Could Add $90 Billion to Kingdom's Economic Output by 2030
Bloomberg Intelligence analysis states decision could generate as much income as Saudi Aramco IPO
Dubai, Thursday 28 September, 2017: The recent decree by King Salman bin Abdulaziz Al Saud allowing women to drive is set to boost economic growth, potentially adding about $90 billion to economic output by 2030. This is comparable to income generated by Saudi Aramco’s initial public offering, Bloomberg Intelligence research by Ziad Daoud, Middle East Economist, has found.
While the gains of this decision may take some time to be realized, greater female engagement in the labor market is likely to provide a substantial lift to the total supply of labor, causing GDP to grow faster over the next decade, the analysis states. Currently, only 20% of females in Saudi Arabia are economically active and increasing their participation rate is one of the main targets of the National Vision 2030 program.
The research finds that just adding 1 percentage point to the rate every year could add 70,000 more women a year into the labor market. While not all of these women may find work, even assuming a structural unemployment rate for women of 17% means the growth consequences are sizable. This could lift potential GDP growth by up to 0.9 percentage points a year. Should this be realized, the Kingdom’s GDP would be around $90 billion larger by 2030 than it would have been if the ban had remained in place. This amount is similar to what Saudi Arabia is trying to raise through the sale of a 5% share in Saudi Aramco.
Bloomberg Terminal clients will find the full analysis on {BI ECON<GO>} and can sign up to the economics BRIEF at {BRIEF<GO>}.
Home >> Banking & Investments Section
Hayy Jameel opens two major exhibitions, celebrating modern and contemporary art ...
Economic transformation through automotive innovation showcased at Automechanika ...
First SaudiFood Manufacturing, Kingdom's largest F&B manufacturing event to-date ...
Gulftainer facilitates successful rail cargo operation from Al Jubail to Al Riya ...
Bill Gates & WHO chief in Riyadh for High-Level Dialogue Sessions
Your Dream Wedding Awaits at The Hotel Galleria Jeddah, Curio Collection by Hilt ...
UAE Ministry of Finance Participated in 2024 IsDB Group Annual Meetings
WEF Special Meeting concludes in Riyadh with world leaders calling for clear, ir ...
Catrice Cosmetics Introduces the Clean Girl Makeup Look with New Essentials!
Slay the sun-kissed girl makeup look: Your Ultimate Guide
Localized data centers are key to business empowerment in KSA
Geopolitical stability, inclusive growth, energy security under spotlight in Riy ...
King Fahd armed forces hospital begins trial of new bioadaptive angioplasty proc ...
Address Jabal Omar Makkah to Host a Captivating Calligraphy Exhibition Featuring ...
Inaugural SaudiFood Manufacturing opens doors tomorrow
Saudi International Luxury Week - JEDDAH edition opens to the public
Boehringer Ingelheim reports strong growth in 2023 and accelerates late-stage p ...
Air Ambulance Saves Man In Remote Desert Crash
Packed crowds flock to Friday's races at the AlUla Camel Cup 2024
Automechanika Riyadh to be held under the patronage of the Saudi Arabian Ministr ...