Opinion
Saudi Arabia’s liberalization is visible in its popular culture
Summary
- A visit to the kingdom was a pleasant surprise. It’s clear that Riyadh’s moves to open it up are having an impact. On infrastructure, it was ahead. On other stuff, it’s emerging.
Saudi Arabia’s unprecedented attempt to diversify from an oil economy to something more sustainable seems to be churning along nicely. The female labour participation rate has nearly doubled to 36% from 2016, the year Crown Prince Mohammed bin Salman laid out his Vision 2030. Unemployment is at a record low. Last year, the number of domestic and foreign tourists exceeded 100 million for the first time.
Headline statistics aside, what’s Saudi Arabia really like? Curious, I did some sightseeing, taking advantage of a new route between Hong Kong and Riyadh. The two financial centres have been strengthening economic ties, cross-investing and offering exchange-traded funds on each other’s bourses. Cathay Pacific started a direct flight late last month.
Before the trip, my friend and I were fussing over our outfits, worrying that we might get stopped on the street for not dressing conservatively enough. We were also a bit nervous about our road trip—after all, women were forbidden from driving until mid-2018.
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What we found was an open and friendly nation that welcomed visitors. We blended in as well as any foreigners would in Abu Dhabi or Dubai, and we didn’t spot the much-feared religious police. In Medina, we accidentally roamed into the courtyard of the Prophet’s Mosque, not knowing it was for Muslims only. When a policeman asked us to leave, his tone was apologetic.
Entertainment options have ballooned in a nation where the median age is 30. Perhaps because of the desert heat, nightlife is booming. From Riyadh’s Boulevard City, a sprawl that includes an amusement park, outdoor cinemas and retail stores, to Jeddah’s Red Sea waterfront, people crowded the streets, singing, dancing and hanging out in cafes and hookah lounges well into the night.
Female drivers are commonplace. And while most Saudi women still wear long flowing abayas as well as face coverings, fashionistas have tossed off their hijab and are wearing their abaya like a cloak. No one casts disapproving glances.
What about men? We took plenty of Uber rides and talked to Saudi drivers. One quipped that traffic in Riyadh got worse after women began driving. A 69-year-old in Jeddah said he was okay that two of his five adult children were unmarried. One 22-year-old said he was a huge fan of Eminem, who’ll perform in Riyadh soon. And people just assumed we were in the Kingdom for business.
Anecdotes aside, there’s also statistical evidence that cultural and social reforms are profoundly changing families and how they live and consume. The share of spending on restaurants, hotels, recreation and culture has increased from about 12% in 2017 to nearly 20% this year, according to Capital Economics.
Home ownership among Saudi citizens has increased to 64% of households from 47% in 2016, when the government slashed payments for mortgages and taxed landowners who left plots undeveloped. Mortgage lending now accounts for nearly a quarter of banks’ total outstanding credit. As testament to the buzzing economy, rents are growing at a brisk 11%, amid sustained inflows of expatriate workers and large redevelopment plans in Riyadh and Jeddah.
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As part of Vision 2030, Riyadh aims to lower the Saudi unemployment rate and increase small businesses’ contribution to the economy. It’s making progress on both fronts, while a cultural opening is giving young Saudis incentives to work.
The prince is falling short on some of his metrics, and the nation’s human rights record remains a serious concern. Women who post online about gender inequality can suffer decades-long jail sentences. The 2022 Personal Status Law requires women to obtain a male guardian’s permission to marry.
This perhaps explains why Saudi Arabia is not getting as much foreign capital as Riyadh desires. In 2023, Norway’s largest pension fund KLP blacklisted some of Saudi’s telecom and real estate companies, citing “human rights abuses."
Last year, net foreign direct investment accounted for only 1.2% of GDP, well below Vision 2030’s 5.7% target. In addition, foreigners are still mostly visiting Saudi Arabia for the Islamic pilgrimages of Hajj and Umrah, even though the country is building ambitious ski slopes in the desert and lavish resorts by the Red Sea that cater to non-religious tourists. The government is aiming for the sector to account for 10% of non-oil GDP.
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Foreign fund managers have likened Saudi Arabia’s 2016 opening to China’s. I don’t think that’s fair, because Saudi Arabia is already a developed country by way of infrastructure. Its roads are good and malls are full of American chain stores—nothing like the 1980s China I knew. But if we look at the speed of cultural change, the parallel is eerily accurate. ©Bloomberg
