A recent survey conducted by NAMA Women Advancement, in partnership with UN Women, found that 77.6 per cent of women-owned businesses (WOB) in the UAE are led by those under the age of 40. Of the 1,000 female business owners who took part in the survey, 48.8 per cent are CEOs and 61.4 per cent are sole proprietors, a clear indicator that Emirati entrepreneurs, particularly young women, are making significant contributions to the GDP in emerging economic sectors.
This survey was a part of the report ‘Women-Owned Businesses in the United Arab Emirates: A Golden Opportunity’, published by NAMA Women Advancement in partnership with The Economic Empowerment Section of the UN Women, which addressed the realities and prospects of Emirati women’s contributions to the UAE’s comprehensive development, enhancing the sustainability of economic sectors and diversifying sources of national income.
The report lauded the UAE’s sustainable and resilient entrepreneurial ecosystem, pointing out the massive strides the UAE has undertaken to ensure gender parity through a series of legal, policy and institutional measures over the past decade, including the simplification of access to finance. The UAE was ranked top in the world in the 2021/2022 Global Entrepreneurship Mentorship (GEM) report in terms of countries that allow for better ease of doing business.
The report indicated that Sharjah aspires to build a sustainable economy by fostering youth entrepreneurship and emerging tech-led industries, enhancing competitiveness and improving business opportunities for MSMEs. Hence, a steady increase in newly registered businesses.
The report revealed that the number of female entrepreneurs is rising significantly, with 25,000 Emirati women entrepreneurs owning 50,000 trade licences valued at AED 60 billion in 2021 compared to 23,000 Emirati women running businesses worth AED 50 billion in 2019 and 11,000 Emirati businesswomen running businesses worth AED 12 billion in 2010.
Respondents stated they were confident in their business growth plans and expressed the importance of securing financing sources. They stressed the importance of engaging women in organisations that provide comprehensive support for entrepreneurs through networking, training and advisory services.
Respondents also expressed a need for training and capacity-building in business skills including commerce and digital marketing skills, financial accounting and management tools, as well as acquiring knowledge on making proposals in response to bids and tenders. Meanwhile, the report also stated that 13 per cent are co-owners with more than 51 per cent of shares, and 25 per cent are business leaders with less than 51 per cent of shares, while 72 per cent of WOBs comprise micro-enterprises, 24 per cent are small enterprises and three per cent are medium enterprises.
The report also provides a comprehensive overview of the realities of small and medium WOBs, and the possibilities of securing financing, in addition to suggestions and recommendations on ways to achieve them and advance businesses, pointing out the massive strides the UAE has undertaken to ensure gender parity through a series of legal, policy and institutional measures over the past decade, in both public and private sectors.
The report pointed out that businesswomen councils in the country were the main drivers for national business legislation encouraging women’s participation in entrepreneurship through micro businesses. Hence, Emirati and non-Emirati women were encouraged to thrive and to start their entrepreneurial journey with minimal set-up requirements.
It also stressed that significant women-focused initiatives for SMEs and home-based activities gave access to thousands of women entrepreneurs to set up their businesses, including the launch of Badiri Education and Development Academy and Irthi Contemporary Crafts Council by NAMA in Sharjah, ‘Sougha’ and ‘Mubdi’ah’ by the Abu Dhabi Businesswomen Council, and ‘Intilaq’ by the Dubai Chamber of Commerce.
A UN Women–NAMA research titled ‘Women-Owned Businesses in the UAE: Opportunities, Challenges and Needs’ indicated that 41.2 per cent of female business leaders stated that the main challenge they face in the UAE is the lack of access to markets; 38.8 per cent noted access to finance, while 33.5 per cent noted high market competition.
