Saudi Arabia: Lifting Ban on Women Driving Will Bring Economic Windfall: Experts

As women’s rights groups continue to steam ahead in full speed petitioning for the reversal of the ban on women’s driving in the Kingdom, experts on the issue conclude that the move, if successful, would not only lift the ban itself but the Saudi economy as well.

“Overall, lifting of the women driving ban in Saudi Arabia is expected to have a major effect on the local economy in three different ways,” said Dr. John Sfakianakis, chief economist at the Saudi British Bank (SABB) in Riyadh.

“First, by putting a large portion of house drivers out of work and increasing the purchasing power of Saudi families; secondly by causing a shift in the ownership of vehicles; and thirdly by a trickle down of additional vehicles being sold to women translating into greater opportunities of opening up new markets.”

Accounting for 49 percent of the population, the economic power of the Kingdom’s women is a force not to be taken for granted, according to a report published in December last year by state oil firm Saudi Aramco. The report said car ownership among Saudi women climbed to 60 percent between 2003 and 2006, taking the total number of automobiles owned by Saudi women to 120,334.

Realizing a limitless profitability, a number of local companies have been waking up to the impact that catering to the Kingdom’s women could make on their businesses. “I feel lifting the ban on women’s driving will cause a boom effect on local automotive businesses,” said Sam Maatouk, sales manager at United Motors in Jeddah.

“It is only logical that the lifting of the driving ban would create a chance for the opening up of so many different markets,” he said, adding that women’s driving schools would begin to be established, fuel consumption would rise, and tires and spare parts manufacturers would also benefit. “I feel the government would also gain financially from a lift on the ban through the issuance of licenses and auto insurance contracts,” he said.

Maatouk, who previously worked in the UK, said most English women prefer small, four-cylinder vehicles, which are easier to drive and park, but added that he expects Saudi women to be more assertive. “Maybe you might see a woman wanting to buy a Dodge Charger because her husband, brother or father has one,” he said.

Anees Salamah, marketing manager of Balubaid Automotive Co. in Jeddah, agreed that the economic consequences of the lifting of the driving ban would be a windfall. “We heard the news about a petition going around and the possibility of the ban being lifted, and have been working on facilities especially designed for women,” said Salamah.

He also said that the company has been dealing with women for a while now and has some women customers who are already owners of two or three cars. “We are currently working on catering to businesswomen by developing special links with financial institutions for them and also a training program for female staff in order to advise new car owners on maintenance procedures, such as changing tires and getting the car regularly tuned up,” he said.

Salamah concluded that they have just completed a survey into identifying the specific needs of Saudi women customers and found that entertainment features were the biggest attraction for women when purchasing a new vehicle. “GPS navigation systems were the most sought after feature,” he explained.

Another primary factor that could drive the number of women car owners up is what he calls economic necessity. “It simply means that some people can’t afford to hire drivers anymore and lifting the driving ban would make life more affordable for women, who would prefer to purchase a car and chauffeur themselves,” he said, adding that with a large population of divorced women and those who have no male guardian more money would be forced into the local economy, money that he says could be put to good use for improving the social infrastructure by developing Saudi ladies’ branches of police departments, gas stations, spare parts shops, and new ladies-only car showrooms.

The only question still remaining is when will be the driving ban lifted. When the question was posed to Custodian of the Two Holy Mosques King Abdullah, he was quoted in the local media as saying that the ban would be lifted “when the country is ready,” which when translated by automotive businesses and so many eager women means it’s only a matter of time.

-- Sarah Abdullah, Arab News