Saudi Cabinet decisions to support economic reforms

Saudi Cabinet decisions to support economic reforms

October 31, 2015
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Samar Fatany

Samar Fatany

On the occasion of the 70th anniversary of the United Nations, UN Secretary-General Ban Ki-moon called on member states to reflect upon the pledge of the Sustainable Development Goals of the UN and urged the international community to redouble its efforts to meet current and future challenges of peace, development and human rights. The President of the UN Economic and Social Council (ECOSOC), Oh Joon, also stressed the need to build upon global collective action and achievements with determined efforts to promote social progress and better standards of life. He said that the UN 2030 Agenda will require that all countries and all stakeholders come together to make the goals a reality.

Commemorating the historic occasion at home, the Saudi Council of Ministers expressed the Kingdom’s readiness to cooperate with other member states to achieve the noble objectives of the UN reforms.

The Council announced a series of procedures aimed at regulating and developing small- and medium-sized enterprises (SMEs) based on global best practices with the objective of raising their productivity, increasing their contribution to gross domestic product (GDP), raising their capacity to play a role in the national economy in order to generate more jobs for Saudis and nationalizing technology.

For these ambitious goals to succeed there should be a political will to collaborate with global companies and cooperate with cross-border initiatives to enhance the entrepreneurial skills of Saudi youth and explore the prospects of boosting young SMEs, creating opportunities for them to build an improved entrepreneurial and social environment.

The Kingdom could cooperate in many ways with the international community to produce effective and efficient results. Collaboration with international experts and global business leaders could create investments to boost the economy and accelerate economic reforms.

A global support network that would involve lawyers, bankers, financiers and investment companies could have a positive impact. Such a network could offer entrepreneurs the necessary legal and financial support to help them set up their own businesses. The ultimate goal would be empowering entrepreneurs to become job creators and consequently employing others to build a strong contributing society.

An official protocol to facilitate the employment of youth in leading global companies could address the unemployment problem and help Saudi employees gain experience and the technical knowhow to advance their careers.

Effective implementation of innovative policies is needed for the Kingdom to overcome its economic challenges. Saudi graduates do not have the skills or proper qualifications to join the workforce, and business opportunities are limited. On-the-job training is lacking and there is a need for more investments to boost the economy. Internship programs in international enterprises can upgrade the skills of young graduates, introduce new business concepts, keep them up-to-date with global trends and developments and teach them the basic requirements to succeed.

Meanwhile, another Cabinet decision that was well received was the endorsement of a new administrative regulation for all governorates that directs the Ministry of Interior to create offices for women and include them in the organizational structure of governorates. The announcement was welcomed by young female graduates and professional women seeking jobs in the Kingdom.

This is a positive move that could finally provide upward mobility for women and allow them to participate in social, economic and political life. Many capable and qualified women remain marginalized because of the lack of a supportive infrastructure and rigid discriminatory policies. According to the 2014 McKinsey “Women Matter” survey, women in Saudi Arabia hold less than one percent of executive-committee and board positions which is among the lowest in the world.

Unfortunately, government agencies and public corporations have not felt the need to employ capable and qualified women thus harming our economy and social progress. The decision to include women in the organizational structure of governorates is a clear indication that the government is finally committed to creating an environment where women can contribute in governmental and non-governmental leadership positions.

The move is a step in the right direction and could influence change putting an end to the biased culture that makes it difficult for women to be recognized as capable citizens who are qualified to hold senior posts in government or any company or organization.

Global exchange, innovative mechanisms and international institutional and business partnership can promote career opportunities to help young Saudi men and women have a positive impact in the workforce and the business community. Saudi stakeholders must show more commitment to implementing the UN 2030 Agenda and achieving the sustainable development goals that are required for economic progress and social prosperity.

Samar Fatany is a radio broadcaster and writer. She can be reached at samarfatany@hotmail.com


October 31, 2015
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