Key Takeaways

• MENA-based women entrepreneurs are constantly growing in number and impact on local economies.
• The region has nearly $3 trillion of untapped potential from female entrepreneurs. 
• Some MENA countries are already showing promising steps forward, with actual initiatives and adjustments of policies.

Women-led businesses across the MENA region have significantly increased in recent years. From groundbreaking tech startups to ventures in traditional sectors, women entrepreneurs are breaking barriers. However, female entrepreneurs own only 5% of businesses in the region, compared to 23-26% globally.

With the right support, women entrepreneurs can drive progress, create jobs, and contribute to a more inclusive economy. According to the World Economic Forum, increasing women’s participation in the workforce could add $2.7 trillion to the regional economy by 2025. 

Economic Impact of Women-Led Businesses

Closing the gender gap in entrepreneurship is not just a social issue but a powerful lever for economic growth. The World Bank estimates that if women participated in the workforce at the same rate as men, we could boost our region’s GDP by 47% and add $2.7 trillion to the region’s economy by 2025. 

As participants in our national economy, women entrepreneurs are reshaping technology, healthcare, and finance industries, creating new jobs, and driving regional economic growth. Startups such as Lebanon’s Nawat, which offers online health education, and UAE’s Leukeather, which produces sustainable materials, are transforming their respective fields. Success stories like these demonstrate how women-led businesses can transform economies and drive sustainable growth for the country and the entire region. 

Women-led businesses are more likely to hire other women and appoint them in managerial roles, promoting inclusive workplaces.

Challenges of Bridging Gender Gaps in Entrepreneurship

Women entrepreneurs in MENA continue to overcome challenges, the most pressing of which is limited access to capital. Traditional lenders may view women-led businesses as “high-risk,” leading to difficulties obtaining the funding required to expand. 

Female-led startups also receive less than 2% of total regional investments, even though data shows they often outperform their male counterparts in returns on investment. This challenge creates an unhealthy cycle: without capital, these businesses cannot grow, and without growth, they cannot attract more capital.  

Some countries are already showing us the way forward. The UAE, Saudi Arabia, Bahrain, and Egypt are crafting progressive policies and initiatives to address these challenges. Bahrain, for example, has focused on digital inclusion and direct support for women entrepreneurs, making women’s business ownership jump to 43%.

Initiatives like TikTok MENA’s Creator Hub and Unlock Her Future Prize aim to reduce these disparities by offering mentorship, funding, and exposure to women entrepreneurs. The UAE’s SheTrades MENA hub empowers women to scale up their businesses through increased trade and market intelligence, targeted assistance, and connections with each other. Egypt’s Aziza Initiative offers low-interest loans and technical support to women-led MSMEs. 

These programs aim to offer women entrepreneurs the right support to help them overcome systemic challenges and prosper. 

Women Entrepreneurs Can Positively Impact the Region’s Economy

Entrepreneurship has helped women fulfil their dreams and reach financial independence, inspiring the next generation of young women to pursue their own paths. By making the most of women’s entrepreneurship, we enable the Middle East’s female potential to add trillions to the economy.

This is an exciting time for women in the Middle East as they chart a course for a promising, prosperous future. Continued support for women entrepreneurs not only highlights the diversity of Emirati society, but also serves as an important economic driver.