Saudi lift ban on women driving: The 90bn$ reason

WebDesk:

Saudi Arabia is the only country in the world which had not allowed women to drive a car until it abandoned the policy on yesterday. Social workers, liberal and all progressive thinkers hail the Saudi government decision. But a question floating everywhere, what is the reason behind this decision where it was not so long that Saudi is the only country where women are barred from every public participation as compared to their male counterparts. Bloomberg has come with a depiction to answer the question. It says, “The move, which went into effect on Sunday, could add as much as $90 billion to economic output by 2030, with the benefits extending beyond that date, according to Bloomberg Economics. Selling as much as 5 percent stake in Saudi Arabian Oil Co. — at the most optimistic valuation — could generate about $100 billion.”

According to Ziad Daoud, Dubai-based chief Middle East economist for Bloomberg Economics. “Lifting the ban on driving is likely to increase the number of women seeking jobs, boosting the size of the workforce and lifting overall incomes and output,”

It further reads, “But it’ll take time before these gains are realized as the economy adapts to absorbing growing number of women seeking work,” he added.

Saudi Energy Minister Khalid Al-Falih said ending the ban means “women will be more empowered and more mobile and I think they will participate more in the job market over time, so I think it’s going to contribute to employment of females in Saudi Arabia.”

As per the media report, only 20 percent women are active in economically active, whereas 42 percent women are actively participating in neighbouring countries of Saudi Arabia as per the data recieved by 2016. To mearge the gap, the lifting ban can be useful.

Source. Economic Times, Bloomberg-economics