The Middle Eastern country of Saudi Arabia is a powerhouse in the oil industry. However, no country, not even Saudi Arabia, is without its challenges. The role of women in society involves a struggle between economic disparity and a hopeful increase in employment. Unfortunately, due in part to the divide between the employed and unemployed, financial and economic disparity still exists. Poverty reduction in Saudi Arabia is being addressed through the efforts of the government and Crown Prince Mohammed bin Salman Al Saud. Saudi Arabia is working tirelessly to increase its employment rates and end its impoverished conditions. Projects such as the Sakaka Solar Power Plant and the NEOM Green Hydrogen Project aim to reduce greenhouse gas emissions.
Hardships & Challenges
Oil is the reason for Saudi Arabia’s position as one of the wealthiest countries in the world. Despite its wealth, living standards within Saudi Arabian households are low. Statistics show that female-headed households are 30 percentage points more likely to be at risk of poverty than male-headed households, even after accounting for differences in education. More importantly, one of the greatest factors for poverty is unemployment, which, according to a comprehensive case study, must be mitigated.
Solutions
One way poverty reduction in Saudi Arabia is being addressed is by expanding employment efforts and business accessibility. By focusing on government financing of the labor market, employment opportunities can be offered not only to men but also to women, who face great difficulty in attaining employment and education. In Riyadh, women are active promoters of environmental sustainability. Women as active agents of change encourage the expansion of the economy.
Further aiming to raise the level of employment, Saudi Arabia is taking steps to reduce its oil dependency by adopting renewable-energy projects to create thousands of jobs. This shift is part of Vision 2030, a program that pushes for women to become employed, further increasing the overall percentage of employed Saudi Arabians. This focus on employing women benefits the economy by contributing to the mass of talent in society. However, the Feminization Program, which also helped to increase female employment, revealed conflicts among government reforms and traditional gender roles in Saudi Arabia. With its patriarchal society, the rise in women’s employment saw men facing job insecurity that challenged the traditional breadwinner model, while Saudi women continue to earn significantly less than men with similar education and experience. The implementation of the Feminization Program showed that food-sector employment increased by 40% and support services by 37% between 2019 and 2021, according to Saudi government data.
Conclusion
Poverty reduction in Saudi Arabia requires the mitigation of unemployment through government support, the rise in women workers and a shift away from the oil industry toward renewable-energy substitutes. By increasing employment rates and advocating for renewable-energy reforms, the country is taking steps to eliminate the wealth gap between poor and rich households and encouraging more women into the workforce.
Despite the benefits of Saudi Arabia’s efforts to tackle poverty, the Feminization Program shows the long-standing patriarchal beliefs of the country, with employed Saudi Arabian women receiving lower wages than men.
– Allison Peterson
Allison is based in Carson City, NV, USA and focuses on Global Health for The Borgen Project.
Photo: Flickr
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Studies conducted
Between 2010 and 2021, the poverty rate in Saudi Arabia 