A new study by Mastercard has revealed that 84% of women in the UAE are considering launching their own businesses, underscoring a growing entrepreneurial spirit in the region. The findings, released ahead of International Women’s Day on March 8, highlight the increasing role of women in shaping the country’s business landscape.
Entrepreneurial Momentum Among Women
The study found that entrepreneurship is nearly equally embraced by both genders in the UAE, with 49% of women and 47% of men identifying as business owners. Financial independence, flexibility, and social impact are the primary motivators driving women toward entrepreneurship.
The trend is especially prominent among millennial women, with 53% actively pursuing entrepreneurial ventures, while 44% of Gen Z women are also entering the business world.
Food and beverage (26%), online selling (22%), and cosmetics (19%) are the top industries for women-led businesses, reflecting the demand in consumer-driven markets.
“This research highlights the entrepreneurial drive among women across Eastern Europe, the Middle East, and Africa, particularly younger generations. While progress has been made, challenges remain, reinforcing the need for stronger support,” said Gina Petersen-Skyrme, Country Manager for UAE and Oman at Mastercard.
Challenges and Barriers
Despite their ambitions, women in the UAE still face obstacles in starting businesses.
- Confidence Gap: 31% of women feel that launching a business is “not possible for someone like them.” Women are three times more likely than men to cite lack of confidence as a barrier (30% vs. 10%).
- Financial Hurdles: 67% of women entrepreneurs say insufficient funding is their biggest challenge, surpassing their male counterparts.
- Lack of Resources: Nearly 40% of female founders struggle with where to start when creating a business plan or accessing essential infrastructure.
Rise of Side Hustles and AI Integration
To gain financial independence, more women are turning to side hustles, with 56% of women engaged in freelance work, tutoring, or content creation—a slightly higher rate than men (52%).
Additionally, AI is becoming a crucial tool for business operations, with 75% of women founders regularly using it. However, men (61%) use AI for decision-making more frequently than women (54%). Still, women report greater efficiency gains, with 85% experiencing cost or time savings compared to 78% of men.
Digital Security Concerns
Cybersecurity remains a growing issue for women entrepreneurs, with 35% reporting being targeted by fraudsters. However, fewer women express concerns over digital fraud compared to men, despite the risks associated with expanding businesses online.
Future Growth and Optimism
Despite challenges, 98% of women business owners in the UAE expect revenue growth over the next five years, outpacing their male counterparts (85%).
With ongoing digital advancements and increasing access to resources, the UAE’s female entrepreneurs are poised to drive economic growth and innovation in the coming years.
