Rising women’s wealth transforms MENA region economies: FAB

Rising women’s wealth is transforming the economies of the MENA region, according to a report by FirstAbu Dhabi Bank (FAB) and WealthBriefing, a global business intelligence service for the wealth management community.

The report, titled ‘Women Winners in MENA: How Wealth Managers Can Help Greater Female Empowerment’, focuses on the growing number of women now claiming their place at the forefront of economic prosperity. In the case of financial services, it also highlights the different expectations that women have as wealth management clients.

Along with education, ‘Winning women in MENA‘ identifies the opportunities created by technology and startup culture as key factors increasing the economic role of women. The report’s authors found that digital channels have given women greater access to information and exposure to other cultural norms, while changing the way they can participate in employment and interact with economic and financial systems. . This is aligned with a rise in female entrepreneurship in the MENA region, to the point that in Saudi Arabia, and the Middle East in general, it is believed that a third of startups are created by women.

Women are also increasingly influencing the strategy of family offices and family businesses in the region, often being seen as “safe pair of hands‘ to run a family business and, in an increasing number of cases, are even given preference over men. In the business field, women bring a new point of view on the management of family wealth, with a different understanding of new opportunities, and at the same time possess “soft” skills to negotiate complex relationships between family members.

In developing the report, high and ultra-high net worth taxpayers confirmed that women tend to share particular needs and preferences that the wealth management industry cannot ignore. Many of these expectations are the same ones that wealthy women around the world have. However, simply transposing women-focused strategies from other markets is likely to overlook key considerations, such as differences in culture and the interplay between the business landscape and established wealth, making the MENA region only.

To meet the needs of MENA women, wealth managers must develop a deep understanding of evolving business and family dynamics. In particular, they need to understand the role that women play in family businesses, in philanthropy and as independent entrepreneurs, and be able to identify with and take their views into account.

Additionally, wealth managers are in a key position to help build the ecosystem that supports female entrepreneurship and women-led businesses. This goes beyond banking and financing services, working with investment firms and regional associations and networks to drive women’s participation, training, initiatives, support and inclusion at all levels of the economy.

‘Women winners in MENA’ is the third WealthBriefing report to examine the varying wealth management needs of women, with the MENA research commissioned by FAB following previous reports covering Europe and Asia. The findings are based on interviews with stakeholders in the government, business and financial sectors, adding context to existing data showing the rise of women’s leadership in Middle East economies, including those from the World Bank, UNESCO, the International Labor Organization and the OECD, as well as consultants including Boston Consulting Group, McKinsey and Deloitte, among other sources.

Areas demonstrating regional progress include tertiary education, where female enrollment in the MENA region reached 43% in 2019, above a global average of 36% and surpassing the male average of 40% worldwide. The United Arab Emirates also performs well in terms of female labor force participation, measured at 52.1%, higher than both the world average and the European Union.

News source: Emirates News Agency