Munajjed analyses the employment of women in the Kingdom and the challenges they still face. Here is part one of three: From international legislative commitments to NGOs dedicated to women's welfare, Saudi Arabia's policies and programs are promising steps on the road to women's full participation in its labor market. However, with less than 15 percent of its national labor force comprised of women, the Kingdom has still an enormous source of untapped potential for its labor force, which currently relies heavily on expatriates. Legislative, social, educational and occupational constraints prevent women from fully participating in the Saudi Labor market. Overcoming these constraints will be essential if the Kingdom is to create a dynamic-market economy. Sweeping reforms will have to be introduced to the national educational system as a major step in preparing Saudi women for competitive jobs. Labor market reforms and labor law reforms should be implemented, with the creation of a supportive environment encouraging the design of programs that emphasize the positive role of Saudi women in the labor market and introduce women to senior labor market positions. Since 1992, women's participation rate in the Saudi national labor force has nearly tripled, from 5.4 percent to 14.4 percent. However, this represents one of the lowest levels of national female participation in the regional labor force: the UAE's national female participation rate is 59 percent; Kuwait's is 42.49 percent, Qatar's is 36.4 percent, Bahrain's is 34.3 percent and Malaysia's, another Muslim country, is 46.1 percent. In addition, the 26.9 percent unemployment rate for female Saudis in the labor force in 2008 was nearly four times higher than that for Saudi males. Although over 90 percent of Saudi women actively participating in the workforce hold a secondary qualification or a university degree, simply getting a degree does not guarantee employment: 78.3 percent of unemployed women are university graduates, and more than 1,000 have a doctorate degree. By contrast, 76 percent of unemployed men have only a secondary education or less. In 2007, 93 percent of all female university graduates specialized in education and humanities, while a shortage of jobs in those fields has resulted in Saudis seeking work abroad. More than 300 Saudi female graduates have already accepted teaching jobs in Kuwait, Qatar, and Bahrain. Uneducated women are even more challenged, especially in rural areas. In 2007, UNESCO estimated that 20.6 percent of Saudi women over the age of 15 were illiterate. With only 3 percent of female illiterates finding an active role in the labor market, over one million Saudi women find themselves unable to enter the labor market due to lack of education or appropriate skills. Unemployment is highest in the region of Hael where it reached 35 percent, followed by the Eastern Region at 32 percent, Makkah at 29 percent, Madinah at 28 percent, the region of Asir at 23 percent and the lowest, Al-Qassim, at 17 percent. Although Al-Qassim is a conservative region, it has a store of educated women who are working as teachers in schools and at the university, mainly in the public sector. Saudi laws based on the Shari'a guarantee a woman's right to work, but stipulate that she should work in an appropriate environment—i.e., not mixing with men or being exposed to harassment. Occupation gender segregation in professional jobs is therefore prevalent. Women are concentrated in professions that are seen as feminine and remain in less distinguished positions than men. The public sector is the largest employer of Saudi women, and women currently represent around 30 percent of government employees. Around 95 percent of working Saudi women are in the public sector: 85 percent in education, in both teaching and administrative positions, six percent in public health, and four percent in administration. Only five percent of working Saudi women are employed by the private sector, the majority in a narrow range of jobs such as private business and banking. At the same time, the number of Saudi women working in the private sector increased by 27 percent over two years, from 40,000 at the beginning of 2006 to 51,000 at the end of 2007. The number of Saudi women working in the banking sector increased dramatically 280 percent from 972 in 2000 to 3,700 in 2008. The majority of Saudi women in the private sector are concentrated in urban areas, such as 39 percent in the Riyadh region, 25 percent in the region of Makkah, 24 percent in the Eastern region, five percent in the region of Madinah, and only two percent in the regions of Al-Qassim and Assir. As part of the Saudization process, the Ministry of Labor has recently identified several opportunities tailored to women such as receptionists, tailors, banquet-hall employees, nutritionists, governesses, photographers, beauticians, caterers, and hospitality and recreation-industry workers. In addition, Saudi women manage their own business investments and enterprises, with 97 percent in wholesale and retail trade, finance and business services, and construction. Saudi women also own 12 percent of the firms in the country and 16 percent of the large manufacturing firms. However, although the need for a wakil, or male guardian, was officially overturned, implementation of this change is lagging and women still need the permission of a wakil to enter into business transactions. - SG Editor's note: Next week's article will look at steps the Saudi government has taken to promote women's advancement.Mona Al-Munajjed Mona Al-Munajjed is a Saudi woman who holds a PhD in Sociology from George Washington University, Washington D.C. and an MA in Sociology from New York University, New York. She is the author of three published books: “Women in Saudi Arabia Today”, “Significance of Arabic Names for Girls in the Arab World”, and “Saudi Women Speak.” She has worked with several United Nations Agencies on programs and projects related to child labor, gender, women and development in Arab countries, and has undertaken various field missions in the Arab region. She worked as a consultant at the Food and Agriculture Organization (FAO) and the International Fund for Agriculture and Development (IFAD) in Rome and was Special Advisor for women workers and gender questions at the International Labor Office (ILO) in Geneva. She also worked with the United Nations Economic and Social Commission for Western Asia (ESCWA) in Beirut. She formulated several social development field projects on activating the economic and educational role of women in Saudi Arabia. She received the UN21 Commendation Award (2004) in recognition for her excellent contribution and individual productivity for the project: “Activating the role of women welfare associations in Saudi Arabia”. She is presently a Senior Advisor with Booz & Company's Ideation Centre, a leading think tank in the Middle East. She is located in Riyadh, Saudi Arabia, and writes regular publications on social issues in the GCC countries and the Arab region. __