The Middle East and North Africa (MENA) region is witnessing a significant shift in entrepreneurship, with female founders playing a crucial role in driving innovation, growth, and social impact.
As reported by Statista, in 2020, 57% of businesses owned by women in the Middle East and North Africa (MENA) were small enterprises with fewer than 20 employees. During the same year, around 31% of these women-led businesses introduced product innovations, reflecting their role in fostering change.
However, the MENA region had the world’s lowest percentage of women in top management positions at only 4.5%, compared to a global average of 15.1%, highlighting the significant barriers women in the region continue to face in reaching leadership roles in business.
Despite challenges, women in the MENA region have made remarkable strides in establishing and leading successful startups across diverse sectors such as technology, healthcare, e-commerce, and social enterprises.
Funding Disparities for Women-Led Startups in the MENA Region
In the Middle East and North Africa (MENA) region, women-led startups face significant challenges in securing venture capital. Data from Wamda reveals that in 2021, startups founded solely by women raised just $34.6 million, accounting for a mere 1.2 % of the total venture funding in the region.
Even when considering startups with at least one female co-founder, such as BitOasis, a cryptocurrency exchange, and iMile, a delivery platform, the figure only rises to 8.5 percent. These numbers highlight the stark contrast between the funding received by male-led startups and those involving women.
The Disparity in Major Funding Rounds
The funding gap becomes more pronounced when comparing major investment rounds. While startups with at least one female founder collectively raised $244 million across 113 rounds in 2021, a single Series C round for Kitopi, a cloud-kitchen company, brought in $415 million.
Similarly, Saudi Arabia’s Unifonic secured $125 million in a Series B round, which alone surpasses the total funding received by female-founded startups. These examples underscore the significant disparities in funding access within the region.
A Talent Pool That is Overlooked
What makes this trend particularly surprising in the MENA region is the strong presence of women in science, technology, engineering, and mathematics (STEM) fields. Across the Gulf, women make up an average of 60% of STEM students, with even higher representation in some countries.
The UAE stands out as a leading example, where women account for 80% of the scientists involved in the country’s Mars Hope probe.
Despite this talent pool, female-led startups still struggle to gain the attention and funding they deserve. Prominent investors like Stripe’s co-founder, Patrick Collison, have pointed to this as a missed opportunity for inclusivity and growth.
The Rise of Female Entrepreneurs in MENA
Over the last decade, the entrepreneurial landscape in MENA has evolved with more women stepping into leadership roles and founding their own ventures. The push towards gender equality, increased access to education, and government initiatives promoting female entrepreneurship have all contributed to this rise.
Today, women are leading startups in traditionally male-dominated sectors, disrupting industries, and creating new opportunities across the region.
Countries like the UAE, Saudi Arabia, and Egypt have seen a growing number of female-led startups. In the UAE, for instance, women entrepreneurs benefit from supportive ecosystems, including accelerator programs, networking platforms, and funding opportunities specifically tailored for women.
In Saudi Arabia, recent reforms have empowered more women to start their own businesses, leading to a surge in female participation in the entrepreneurial space.
Success Stories and Role Models
The MENA region is witnessing the rise of remarkable female founders who have built successful businesses and paved the way for future generations of women entrepreneurs.
These role models have faced and overcome significant challenges, proving that determination, innovation, and resilience can create impactful ventures.
Below mentioned are a few inspiring success stories of women who are redefining entrepreneurship in MENA:
1. Mona Ataya – Co-Founder and CEO of Mumzworld (UAE)
Mona Ataya is one of the most prominent entrepreneurs in the Middle East. After a successful corporate career, she launched Mumzworld in 2011, filling a significant gap in the market for mothers seeking quality baby products. Starting with just a vision and a small team, Mumzworld grew rapidly to become the largest online marketplace for mother and child products in the region.
Ataya’s relentless focus on understanding customer needs, coupled with her strategic business acumen, has positioned Mumzworld as the go-to platform for millions of mothers across MENA.
Her story is not just one of business success but of empowering women, as Mumzworld provides mothers with tools and resources to make informed purchasing decisions. Ataya’s journey reflects her commitment to creating value while advocating for women’s rights and opportunities in business.
2. Rana el Kaliouby – Co-Founder of Affectiva (Egypt)
Rana el Kaliouby is a leading pioneer in Emotion AI technology. As the co-founder of Affectiva, she has revolutionised how artificial intelligence interacts with human emotions. Affectiva is a software development company founded as an offshoot of the MIT Media Lab.
It specialises in Artificial Emotional Intelligence, also known as Emotion AI. Acquired by SmartEye in 2021, Affectiva’s AI technology analyses human emotions, cognitive states, and activities by interpreting facial and vocal expressions. Using deep learning, computer vision, and speech analytics, the AI processes data from real-world scenarios.
It identifies facial expressions through optical sensors like webcams or smartphone cameras and maps these to emotions. The technology also detects objects and tracks body movements using computer vision.
3. Hind Hobeika – Founder of Instabeat (Lebanon)
Hind Hobeika’s entrepreneurial journey is one of innovation and persistence. As a professional swimmer, Hobeika realised the need for a better way to track performance, which led her to develop Instabeat i.e. a smart goggle that monitors swimmers’ heart rates and other key metrics in real-time.
Despite facing multiple challenges, including funding issues and technical obstacles, Hobeika’s determination pushed her forward. Instabeat eventually secured global recognition, winning awards and gaining attention from international investors.
Hobeika’s success story highlights the importance of solving real-world problems through innovation and underscores the potential of women-led tech ventures in the region.
4. Nayla Al Khaja – Founder of Nayla Al Khaja Films (UAE)
Nayla Al Khaja is a trailblazer in the film industry, being the first female film director and producer in the UAE. Breaking through cultural and societal barriers, she established her own film production company, Nayla Al Khaja Films, which focuses on both commercial and independent films.
Her work often explores complex social issues and women’s rights, making her a voice for change in the region. Al Khaja’s success is not limited to the screen; she has also played a pivotal role in nurturing the next generation of filmmakers in the UAE by offering mentorship and support.
Her journey is a testament to how passion, creativity, and resilience can lead to success in industries where women have traditionally been underrepresented.
5. Dr. Laila Bin Hareb Almheiri – Founder of Alive Group (UAE)
Dr. Laila Bin Hareb Almheiri, an Emirati serial entrepreneur, is the founder and CEO of Alive Group. With over 30 years of experience, she is a recognised expert in aviation, cybersecurity, public transportation, and holistic healthcare.
Driven by her personal experiences, she established Alive Group to create positive change. The company encompasses innovative ventures in diagnostics, education, and cybersecurity awareness.
Dr. Laila oversees operations while also serving as a senior advisor to Bain & Company. Alive Group is committed to providing personalised, holistic healthcare experiences that enhance overall well-being.
6. Lamia Bazir – Empowering Women in the Atlas (Morocco)
Lamia Bazir, born in El Jadida, Morocco, is a dedicated advocate for women and girls. She founded Empowering Women in the Atlas to support rural women’s leadership in Morocco.
A graduate of Sciences Po Paris and Columbia University, Lamia earned dual Master’s degrees and received the Harvey Picker Prize for Public Service. She also served as a UN youth representative. Bazir’s work emphasises sustainable development and climate awareness, securing funds like $100,000 from MEPI.
Her mission remains focused on expanding her impact and empowering more women through social business initiatives.
7. Reem Khouri – Co-Founder of Kaamen (Jordan)
Reem Khouri is the founder and CEO of Kaamen, a social enterprise focused on unlocking untapped potential. Kaamen supports organizations in designing impactful economic and social models for greater efficiency and revenue.
Operating across the Middle East, Asia, Africa, and Latin America, Kaamen partners with governments, corporations, NGOs, and social enterprises. Reem is also an Associate at 3BL Associates and Faculty at Amani Institute in Nairobi.
Recognised as one of the World’s 100 Most Influential Arabs Under 40, she’s a Young Global Leader of the World Economic Forum and serves on several global boards.
8. Yasmin Helal – Founder of Educate Me (Egypt)
Yasmin Helal is the founder of Educate Me, a nonprofit organization that focuses on transforming education for underserved communities in Egypt. Her journey from being a biomedical engineer to a social entrepreneur was driven by her passion for education reform.
Educate Me provides holistic education programs that empower students with not only academic knowledge but also essential life skills. Helal’s work has impacted thousands of children, providing them with opportunities that would otherwise be out of reach.
Her dedication to improving education systems has made her a leading figure in social entrepreneurship, proving that businesses can be a force for positive social change.
9. Elissa Freiha – Co-Founder of WOMENA (UAE)
Elissa Freiha co-founded WOMENA, a platform aimed at increasing the presence of women in the entrepreneurial ecosystem through investment and mentorship.
WOMENA has played a critical role in supporting female founders by offering them access to angel investors and venture capitalists who understand the unique challenges they face.
Freiha’s work has led to the creation of a more inclusive environment for female entrepreneurs in MENA. By advocating for women’s financial empowerment and providing a platform for collaboration and support, she has made a lasting impact on the region’s business landscape.
10. Sarah Beydoun – Founder of Sarah’s Bag (Lebanon)
Sarah Beydoun is the founder of Sarah’s Bag, a fashion brand that combines style with social impact. What began as a small project to help marginalised women has grown into an internationally recognised brand known for its handcrafted bags.
Beydoun’s business model is built on empowering underprivileged women by providing them with employment and skills training.
Her brand’s unique combination of fashion and social responsibility has earned her acclaim both in the Middle East and globally. Beydoun’s success story illustrates how businesses can be a force for good while also thriving in competitive markets.
Key Sectors Led by Female Founders
- Technology and Innovation: Female founders in the MENA region are at the forefront of technology-driven ventures. Women-led startups are leveraging artificial intelligence, fintech, and digital platforms to solve real-world problems. Notable examples include Rana el Kaliouby, co-founder of Affectiva, a pioneer in Emotion AI, and Hind Hobeika, founder of Instabeat, a fitness technology startup.
- E-commerce and Retail: The e-commerce sector in MENA has seen tremendous growth, with women playing a key role in this expansion. Founders like Noor Sweid, founder of Global Ventures, and Amani Asfour, founder of multiple businesses in Egypt, have established successful enterprises that cater to regional and global markets.
- Healthcare and Well-being: Female founders are also making a mark in healthcare and wellness. Startups led by women are addressing critical needs such as telemedicine, mental health support, and accessible healthcare solutions. Lamia Bazir from Morocco, who founded Empowering Women in the Atlas, is a notable example of a founder using her expertise to drive impact in her country.
- Social Enterprises: Many female entrepreneurs in MENA are leading purpose-driven businesses focused on social impact. These enterprises tackle issues such as education, poverty alleviation, and women’s empowerment. Mona Ataya, co-founder of Mumzworld, has built a platform that not only serves parents but also empowers women by providing them with flexible work opportunities.
Challenges Faced by Female Founders in MENA
Despite the significant progress, female founders in MENA still face challenges unique to the region. These include:
- Access to Funding: Women entrepreneurs often struggle to secure venture capital compared to their male counterparts. Cultural biases and gender stereotypes can also make it harder for women to gain the trust of investors.
- Cultural Barriers: In some MENA countries, societal norms still impose restrictions on women’s participation in business. While this is changing, the pace of change varies across the region.
- Networking and Mentorship: Access to networks and mentorship remains limited for female founders. While several initiatives now exist to bridge this gap, women entrepreneurs often find it harder to connect with the right resources and partners.
Support Systems and Initiatives
Recognizing the potential of female entrepreneurs, various organizations and government bodies have launched initiatives to support women-led startups.
Programs such as WOMENA, WomenSpark, She WINS Arabia, and Flat6Labs provide mentorship, funding, and networking opportunities tailored to women in the MENA region.
Additionally, governments are increasingly offering incentives and creating a more inclusive business environment to encourage female participation in entrepreneurship.
Addressing the Funding Gap
The significant underfunding of women-led startups in MENA highlights the urgent need for systemic changes. Although some progress has been made globally, the journey toward equitable funding and representation for women entrepreneurs in the region remains long and challenging.
Without deliberate efforts to bridge this gap, the potential contributions of women to the entrepreneurial landscape will continue to be overlooked.
The Road Ahead
The future for female founders in MENA is bright. As more women break into traditionally male-dominated sectors, challenge cultural norms, and demonstrate their business acumen, they are setting the stage for greater gender equality in entrepreneurship.
With increased support from governments, investors, and communities, the region is poised to witness a surge in successful female-led startups in the coming years.
However, sustained progress requires continued efforts to address the challenges that remain. This includes creating more inclusive investment landscapes, ensuring equal access to resources, and fostering a culture that values the contributions of women entrepreneurs.
As these changes take root, the impact of female founders on the region’s economic and social development will be profound.
To Conclude
Female founders in the MENA region are transforming the entrepreneurial ecosystem through their innovation, leadership, and resilience. They are challenging stereotypes, breaking barriers, and driving meaningful change across industries.
As more women rise to the forefront of entrepreneurship, they are not only shaping the future of business in the region but also inspiring a generation of young women to dream big and pursue their entrepreneurial ambitions. The journey ahead is filled with promise, and the impact of these trailblazing women will be felt for years to come.
The future for female founders in MENA looks promising. With increasing awareness of gender equality, supportive ecosystems, and the continued efforts of women entrepreneurs breaking barriers, the region is likely to see more women-led startups thriving in the coming years.
