• 7 minutes Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 16 minutes Google, Hit With Record $5 billion EU Antitrust fine, To Appeal
  • 23 minutes 67.50 was the low for now, $70 - $76+ back in play
  • 2 hours Rally on Hold, if 69.5 don't break, 62.5 could be next.
  • 14 hours Daimler and BMW Will Beat Tesla in EV Race
  • 5 hours Chile Becomes The Latest Country To Commit To 100% Renewables
  • 20 hours Trudeau Shuffles Cabinet, Seeks To Reduce Reliance On U.S.
  • 2 days EU And Japan Sign Historic Free Trade Deal
  • 5 hours China’s Technology Sector Takes On Silicon Valley
  • 19 hours Chartist predicting a $1 fall, after WTI drops $10
  • 4 hours Where 3 Million Electric Vehicle Batteries Will Go When They Retire?
  • 2 days Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 2 days Trump-Putin Helsinki Summit And Oil Prices
  • 2 days Germany: We Can No Longer Fully Rely On U.S. White House
  • 16 hours Rio Tinto Says $4-Million Goodbye to Coal
  • 2 days Trump mulling releasing 5 to 30 Mill Barrels
Surprise Crude Oil Build Sends Oil Prices Down

Surprise Crude Oil Build Sends Oil Prices Down

Oil prices fell on Wednesday…

U.S. Poised To Ease Biofuel Quotas

U.S. Poised To Ease Biofuel Quotas

Though biofuel technology is moving…

Female Drivers To Boost Gasoline Demand In Saudi Arabia

Saudi female driver

The addition of half the Saudi population to the current number of drivers will significantly boost gasoline demand in the Kingdom and, according to Bloomberg, could in fact bring in economic benefits almost equal to those expected from the listing of Aramco.

Saudi Arabia yesterday finally joined the rest of the world after for decades being the only country that barred women from driving. The end of the ban could add as much as US$90 billion to Saudi economic output, Bloomberg Economics has estimated. This compares to an optimistic estimate of US$100 billion in proceeds from the Aramco IPO, which has been delayed until next year.

“There will be more cars on the road,” Oil Minister Khalid al-Falih said. "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. A secondary effect will probably be higher gasoline demand.”

Bloomberg Economics analyst Ziad Daoud agrees with him. “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,” he says, but adds that “it’ll take time before these gains are realised as the economy adapts to absorbing growing number of women seeking work.”

Many see the removal of the ban on women driving an as the reform that will have the strongest reverberations in Saudi Arabia’s economy. At the moment, female participation in the labor market in the Kingdom is just 20 percent, which is much lower than even Saudi Arabia’s closest neighbors in the Gulf, where the average was 42 percent in 2016.

So, the boost in gasoline demand will likely just be the start of changes for the Saudi economy from the end of the decades-long ban. These changes will become especially important if the Aramco IPO never takes place as some observers of the Kingdom with a more skeptic bend suspect.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News