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In recent years, the United Arab Emirates (UAE) has witnessed a significant rise in female entrepreneurship, with more women taking on leadership roles in various sectors, particularly in the public sector. However, challenges persist, especially when it comes to raising capital for women-owned businesses. A recent survey revealed that nearly half of women business owners in the UAE face difficulties in securing funding. To address this issue and further empower women in the entrepreneurial landscape, industry experts suggest that the growth of women-led venture funds is essential.Empowering Women in the UAE’s Business LandscapeThe progress made in promoting gender diversity and inclusion in the UAE is undeniable. Women now hold prominent positions and contribute significantly to the nation’s development. Zahra El Zayat, the Chief Commercial Officer at evision, the media, and entertainment arm of e& life, acknowledges the positive changes and opportunities created for women in recent years.
She emphasizes the growing influence of women in decision-making processes, be it in boardrooms, investment committees, or funding rounds.However, despite these advancements, a gender disparity still exists in venture capital (VC) and entrepreneurship. Women-led VC firms are rare, and this scarcity can lead to unconscious biases in investment decisions. Ms. El Zayat points out that many women entrepreneurs struggle to find the right networking opportunities to connect with potential investors and mentors.Simulated Social Networks: A Potential SolutionTo address these challenges, there is a call for the establishment of more women-led venture funds, incubators, and programs. Yousef Al Otaiba, the UAE’s Ambassador to the US, emphasizes the importance of creating a supportive ecosystem that encourages risk-taking and incentivizes women to participate in the entrepreneurial space. This support is vital for both men and women, as access to funding remains a challenge for all entrepreneurs.One innovative approach gaining traction is the concept of simulated social networks. These networks aim to provide educational experiences that empower students, particularly women, to make informed decisions about technology and entrepreneurship. By exposing students to various roles within the tech industry, these simulations encourage critical thinking about the ethical and societal implications of their decisions.Design Refusal and Ethical TechFrances Haugen’s concept of “design refusal” is also making its way into engineering education in the UAE. Design refusal encourages students to consider the broader societal impact of their work and to refuse projects that could harm the public. This mindset shift aligns with the UAE’s commitment to fostering responsible and ethical technology development.Huda Al-Lawati, the founder and CEO of Gulf Cooperation Council-centric fund Aliph Capital, highlights the importance of encouraging risk-taking and entrepreneurship from an early age. In contrast to traditional education systems that prioritize safety, Al-Lawati suggests that empowering youth to embrace entrepreneurship and the associated responsibilities can lead to more innovative and confident entrepreneurs.Challenges and Opportunities for Women Entrepreneurs
The survey data reveals that nearly half of women business owners in the UAE face challenges in raising capital, with many tapping into their personal savings. Additionally, stereotypes persist, with some perceiving women as less capable of making tough decisions. Despite these hurdles, women-owned businesses in the UAE score well in digital marketing, online presence, and customer engagement, according to the Visa Women SMB Digitalisation Index.The UAE government has been proactive in passing laws and policies to enhance women’s contributions to society and economic development. However, the private sector must also step up its efforts to promote gender diversity and inclusivity, especially in leadership positions.
ConclusionPromoting women-led venture funds and encouraging women to take on leadership roles in entrepreneurship are critical steps in advancing gender equality and economic growth in the UAE. Creating an ecosystem that supports risk-taking, ethical technology development, and responsible entrepreneurship will empower women to overcome funding challenges and thrive in the entrepreneurial landscape. The UAE’s commitment to fostering a diverse and inclusive business environment reflects its dedication to women’s empowerment across various spheres, ultimately contributing to the nation’s sustainable economic development.
