Search SaudiArabiaPR.com

Home >> Banking & Investments

Saudi Arabia Driving Decree Could Add $90 Billion to Kingdom's Economic Output by 2030

Saudi Arabia Driving Decree Could Add $90 Billion to Kingdom's Economic Output by 2030

Thursday, September 28, 2017/ Editor -  

Share

Home >> Banking & Investments

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>}. 


Previous in Banking & Investments

Next in Banking & Investments


Home >> Banking & Investments Section

Latest Press Release

Aramco CEO to Bloomberg: Speaking to credit rating agencies before landmark bond ...

Saudi Plastic and Petrochemical Exhibition 2019 set to launch with government an ...

Lenovo Offers Security Solutions in Global Smart City Race at Intersec 2019

Young Saudi women take centre-stage in brand-new television drama

Implementation Date Announced for Long-Term Residence Permits

Saudi Ministry of Environment, Water and Agriculture signs contract for the firs ...

Honor 10 Lite Packs Stylish Looks and Flagship Performances Into New Device

M Hotel Makkah by Millennium honors its employees on its 2nd Anniversary

Nissan Energy demonstration hits the spot

Introducing Burberry Bespoke Fragrances

The Kingdom of Saudi Arabia's Minister of Energy, Industry, and Mineral Resource ...

Turkish Airlines reached the 80.2% Load Factor in December 2018.

Saudi Visa Application Process in Dubai Restricted to Holders of UAE Residence P ...

Global Energy Forum: His Excellency Khalid Al-Falih's address on day three

World No.2 completes all-star field, with four of golf's top five setting sights ...

Rolls-Royce Motor Cars Achieves Historic Business Record

Breakbulk Middle East 2019 reinforces the collaboration between UAE and Saudi Ar ...

SHUAA successfully issues and places USD135 million (SAR 506 million) Sukuk for ...

Sony Unveils Newest Products and Introduces Latest Efforts from Entertainment B ...

LG Electronics' Promise of AI for an even Better Life Delivered at CES 2019 Keyn ...