What's Fuelling Emirati Women Entrepreneurs' Rise: An Analysis

What's Fuelling Emirati Women Entrepreneurs' Rise: An Analysis

By: WE Staff

Women’s entrepreneurship is on a rapid rise across the UAE; however, funding & structural hurdles remain strong. Join us as we deep-dive into what’s inspiring this growth, government initiatives helping women founders, and key sectors under focus.

Women founders in the UAE are no longer waiting to get seats at the table; they are building their own.

In the UAE, women's entrepreneurial ambition is reaching unprecedented heights. A recent Mastercard study found that 84 percent of women in the country are considering starting their own businesses, a figure that signals not just personal ambition but a wider cultural and economic shift.

Data from corporate services firm, Sovereign, concluded that in 2025, women form 18 percent of all entrepreneurs in the UAE.

With startups that span varied sectors such as technology, retail, health, and beyond, women are rewriting the gender-balance story in the UAE’s entrepreneurial landscape. From side hustles to scalable startups, women are stepping into spaces once dominated by men, reshaping what the future of business in the Emirates looks like.

What’s Inspiring This Growth

What's driving this surge is a desire for financial independence, flexibility, and the vision to create social impact. Many women see entrepreneurship as the most powerful route to charting their own paths, whether through launching online ventures, innovating in food and lifestyle sectors, or experimenting with digital-first ideas. Optimism runs high as nearly all women entrepreneurs in the UAE expect their revenues to grow over the next five years.

While ambition and optimism are in abundant supply, there exist tough challenges that are keeping women founders’ startup dreams from skyrocketing.

Gina Petersen-Skyrme, Country Manager, UAE & Oman, Mastercard, mentions, "While progress has been made, challenges remain, reinforcing the need for stronger support."

Dismal Funding & Structural Hurdles Slow Women’s Momentum

Raising funds has emerged as the toughest roadblock facing Emirati women entrepreneurs. Mastercard’s research shows that 67 percent of aspiring women entrepreneurs cited lack of funding as their biggest barrier.

According to statistics shared by WAMDA, the first half of 2025 saw women-founded startups raising a combined $84.5 million across 27 deals. This is only 4.2 percent of the $2.1 billion raised by all startups during the six months. Mixed-gender founding teams fared marginally better, securing $150 million.

Another key challenge women face is a lack of confidence, while 31 percent admit they struggle with a confidence gap, believing entrepreneurship may not be “for someone like me”.

Beyond access to capital and self-belief, skills and mentorship gaps remain pressing issues as well. Studies highlight how cultural expectations, limited networks, and uneven access to training can hold women back from scaling their ventures. Women entrepreneurs also count the lack of mentorship as a key factor holding them back. It will be critical to address these challenges if the UAE intends to unlock the true potential of Emirati women entrepreneurs.

In-Focus Sectors & Technology’s Crucial Role

Across the UAE, women are finding opportunities in diverse sectors. Food and drink, online retail, and cosmetics have emerged as popular starting points, often requiring lower upfront investment and allowing flexible operations. Many ventures begin as side hustles, from home-based catering to Instagram-driven fashion lines, before scaling into full-fledged enterprises.

Technology, however, is accelerating this shift. Women are increasingly using digital platforms, AI tools, and e-commerce ecosystems to launch and expand businesses. For many, the digital-first approach lowers entry barriers, enabling them to test markets quickly and build customer bases without heavy infrastructure costs.

Initiatives Empowering Women-led Startups

Recognizing both the potential and the obstacles, the UAE has rolled out targeted initiatives to empower women-led startups. The Ministry of Economy's Investment Readiness Acceleration Programme, in partnership with the European Women Association, is equipping female founders with investor-ready skills.

Regionally, programs like She Wins Arabia, backed by the International Finance Corporation and ADGM, provide mentorship, funding pathways, and international exposure. Beyond accelerators, policy interventions are also reshaping the landscape.

For example, new regulations require private joint-stock companies to appoint at least one woman to their board, a move designed to normalize women's presence in leadership and strengthen the talent pipeline.

Looking Ahead

This rise of women entrepreneurs in the UAE is more than a story of personal ambition, as it carries deep economic and social weight. With SMEs already powering a large share of the nation's GDP, expanding women's participation in this growth engine promises greater innovation, stronger job creation, and enhanced resilience for the economy.

Further, women-led ventures are reshaping society by breaking stereotypes, inspiring younger generations, and cementing the UAE's reputation as a hub of inclusive progress. The momentum is undeniable as more women than ever are ready to build businesses and shape their futures.

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