Sharjah, UAE— A Women under the age of 40 lead 77.6 percent of the women-owned businesses in the UAE, a survey has said.
The survey conducted by NAMA Women Advancement, in partnership with UN Women, found that of the 1,000 female business owners who took part in the survey, 48.8 percent are CEOs and 61.4 percent sole proprietors.
The results indicate 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’, 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 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.
Rise in the number of women-owned businesses
The report revealed that the number of female entrepreneurs is rising significantly, with 25,000 Emirati women entrepreneurs owning 50,000 trade licenses valued at AED 60 billion ($16.33 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 organizations that provide comprehensive support for entrepreneurs through networking, training and advisory services.
The report also stated that 13 percent are co-owners with more than 51 percent of shares, and 25 percent are business leaders with less than 51 percent of shares, while 72 percent of women-owned businesses comprise micro-enterprises, 24 percent are small enterprises and 3 percent medium enterprises.
Councils key drivers
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
Opportunities and challenges
The report said that 41.2 percent of female business leaders stated that the main challenge they face in the UAE is the lack of access to markets, while 38.8 percent noted access to finance and 33.5 percent said high market competition were the challenges.
Reem Bin Karam, Director of NAMA, said, “This report represents an unquestionable proof of women’s role as a major component of development in the UAE.”