UAE: 84% of women thinking of starting own business, study reveals

Khaleej Times

05-03-2025

Eighty four per cent of women in the UAE are considering starting their own business, according to latest research, released ahead of the International Women's Day, March 8.
The Mastercard study found that entrepreneurship is nearly equally embraced by both genders in the UAE, with 49 percent of women and 47 percent of men surveyed identifying as entrepreneurs, highlighting the country's dynamic business environment.
Financial independence, flexibility, and social impact are the top motivators driving women toward entrepreneurship.
Millennial women are leading this shift at 53 per cent, while Gen Z women are also increasingly entering the entrepreneurial space at 44 per cent.
The most popular sectors for women-led businesses in the UAE include food and beverage at 26 per cent, online selling at 22 per cent, and cosmetics at 19 per cent, reflecting strong opportunities in consumer-driven industries.
'This research highlights the remarkable entrepreneurial spirit 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. At Mastercard, we are committed to fostering an inclusive digital economy and equipping small businesses with the tools they need to grow and thrive,' said Gina Petersen-Skyrme, Country Manager, UAE and Oman, Mastercard.
Women-led businesses in the UAE are highly optimistic about their growth prospects, with 98 per cent of women business owners surveyed expecting revenue to increase over the next five years, outpacing their male counterparts at 85 per cent.
However, nearly one-third, 31 per cent, of women still feel that launching a business is 'not possible for someone like them,' highlighting a significant confidence gap.
Lack of confidence as a barrier
Despite their strong ambitions, women in the UAE acknowledge areas where additional support could help accelerate their success.
The study reveals that women are three times more likely than men (30 per cent of women, 10 per cent of men) to cite lack of confidence as a barrier to starting a business.
67 per cent of women surveyed say that insufficient funding is the primary challenge to starting a business, surpassing their male counterparts.
Nearly 40 per cent of female founders struggle with knowing where to begin with a business plan or accessing critical infrastructure, underlining the need for more mentorship and resources.
Encouragingly, women entrepreneurs in the UAE are increasingly using side hustles to gain financial independence.
56 per cent of women surveyed have a side hustle, slightly higher than the 52 per cent of men, with freelancing, tutoring, and content creation being among the most popular income streams.
AI and digital security
AI and digital security are playing a significant role in shaping how women entrepreneurs operate their businesses.
Seventy-five percent of women founders regularly use AI, although a higher percentage of men, 61 per cent, use AI for decision-making compared to 54 per cent of women.
However, women entrepreneurs report greater efficiency gains, with 85 per cent experiencing significant cost or time savings, while 78 per cent of men report the same.
When it comes to cybersecurity, 35 per cent of women entrepreneurs have been targeted by fraudsters. Despite this, fewer women express concerns about the risks of fraud when expanding their businesses, compared to larger number of men. However, ensuring secure digital transactions remains a critical priority for business growth.