Saudi Arabia’s end to the ban on women drivers could generate more income than oil share

Saudi Arabia’s lifting of its ban on women drivers, which went into effect today, could generate enormous sums for the Saudi economy, according to economic observers.

As much as $90bn (£68bn) could be added to Saudi GDP by the move, almost the equivalent of a five per cent stake in the shares of the country’s state oil company, Saudi Aramco, according to Bloomberg Economics.

Analysts think that lifting the female driving ban is like to increase the number of women seeking jobs, boosting the size of the workforce and lifting overall incomes and output.

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Ziad Daoud, a Dubai-based chief Middle East economist for Bloomberg Economics, told City A.M.: “One of the reasons why we think women are under-represented in the labour market is something unique in the Gulf – they cannot drive.”

He added: “This decision will generate as much economic benefit as a partial sale of Aramco would. However, it will take a few years before we start seeing the benefits.”

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Only a fifth of women in Saudi Arabia are economically active, lagging behind many of its neighbours.

The decision comes from Crown Prince Mohammed bin Salman as part of broader attempts to modernise a country that has been historically suspicious of reform.

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However, the young leader of Saudi Arabia still faces criticism from human rights groups such as Amnesty, amid an intensified crackdown on activists who campaigned for the right to drive.

Daoud said: “Having only 20 per cent of women in the workforce is low by global standards, and it is low even when compared to regional neighbours.”