RIYADH: Saudi women are playing an increasingly significant role in the Kingdom’s economic transformation, with female labor force participation rising from around 23 percent in 2016 to more than 34 percent today. Women also now own nearly 45 percent of small and medium-sized enterprises (SMEs), reflecting the impact of reforms introduced under Saudi Vision 2030.

Experts say a combination of regulatory changes, government initiatives such as Monsha’at, and evolving social attitudes has encouraged more women to enter the workforce, launch businesses, and expand their presence across the SME sector.

Basma Bushnak, Education and Skills Partner and Middle East Inclusivity and Diversity Leader at PwC Middle East, said Saudi Arabia’s progress has been driven by simultaneous advances in social reform, economic diversification, and private-sector development.

According to Bushnak, reforms related to mobility, employment, and access to economic opportunities removed many of the structural barriers that had previously limited women’s participation. These changes have helped increase female representation in sectors including technology, entrepreneurship, financial services, tourism, and the wider SME ecosystem.

Sally Menassa, Partner at Arthur D. Little, said regulatory reforms, national initiatives, and stronger institutional support have all contributed to the rapid growth of female entrepreneurship and workforce participation. She added that changing social attitudes have allowed these reforms to translate into greater economic participation.

Hadjer Chakal, Account Manager for Western Arabia at Axis Communications, said cultural change has also played an important role, with women becoming increasingly visible in leadership positions, project management, customer engagement, and industries linked to digital transformation and smart technologies.

Anil Singh, Chief Business Officer for Saudi Arabia at TASC Outsourcing, said organizations such as Monsha’at, the Human Resources Development Fund (HRDF), and startup support programs have made entrepreneurship more accessible by providing funding, training, and business incubation opportunities. He added that these initiatives have equipped women with the resources and confidence to enter industries that were previously difficult to access.

Women are now making a growing contribution across a wide range of sectors, including technology, tourism, logistics, healthcare, manufacturing, financial services, and startups. Their increasing presence in leadership positions within corporations, government organizations, family businesses, and emerging companies has become one of the most notable developments.

Experts also highlighted that many women-led SMEs are introducing innovative business models that emphasize digital solutions, customer experience, personalization, community engagement, and sustainability. Their growing presence is contributing to a more diverse, competitive, and dynamic SME environment.

According to industry specialists, female entrepreneurship is helping expand innovation, create new business opportunities, and strengthen Saudi Arabia’s SME ecosystem. Women entrepreneurs are also inspiring younger generations by demonstrating new possibilities in business, technology, and innovation.

The experts agreed that higher female participation in employment and entrepreneurship supports broader economic growth by expanding the workforce, increasing household income, and strengthening Saudi Arabia’s economic transformation under Vision 2030.

Despite this progress, they noted that some challenges remain. Access to growth-stage funding continues to be an obstacle for many women-led businesses seeking to expand. Entrepreneurs also face challenges related to scaling operations, attracting talent, expanding internationally, and balancing business responsibilities with family commitments.

Nevertheless, experts believe Saudi women will continue to play an increasingly important role in the Kingdom’s business landscape through leadership, entrepreneurship, and innovation.