Power Women in Arabia: Shaping the Path for

Power Women in Arabia:
Shaping the Path for
Regional Gender Equality
While significant progress has been made in gender
equality, A.T. Kearney's recent regional study shows
that a concerted effort of all stakeholders is required
to reach the final goal.
Power Women in Arabia: Shaping the Path for Regional Gender Equality
1
Executive Summary
Over recent decades, numerous studies have investigated the impact of female participation
in the workforce. Recently, the B20 Employment Taskforce, in collaboration with A.T. Kearney,
found that reducing the gender gap by 25 percent will add 100 million women to the G20
labor force by 2025.1 Additionally, closing the gender gap could add 12 percent to the size
of the total Organisation for Economic Co-operation and Development (OECD) economy
by 2030. As part of A.T. Kearney’s commitment to gender equality, we conducted a study to
assess the state of “Power Women” in Arabia.
A.T. Kearney’s study confirms the great progress achieved so far in the Gulf Cooperation Council
(GCC) regarding gender equality in the workplace. However, there is still much to be done.
When looking at women in leadership positions, the region still faces a large gap vis-à-vis other
parts of the world.
Advancement toward gender parity, beyond incentivizing women to pursue higher education
or increasing female participation in the workforce, needs to ensure women reach the leadership positions to which they aspire. There is no simple or quick solution to the systematic
challenges that women face in reaching the top of the ladder. Instead, a concerted effort by
all stakeholders—policy makers, private corporations, and individuals—is required to make
gender equality a reality in the GCC.
B20 Employment Taskforce Policy Paper – B20 Turkey, 2015
1
Power Women in Arabia: Shaping the Path for Regional Gender Equality
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Women’s Contribution to the Economic Landscape:
A New Reality
Numerous studies in recent decades have revealed the positive impact of female participation
in the workforce. It is clear that greater participation by women contributes to a substantial
improvement in the economy. Recently, the B20 Employment Taskforce, in collaboration with
A.T. Kearney, determined that reducing the gender gap by 25 percent will add 100 million
women to the G20 labor force by 2025. Additionally, closing the gender gap could add 12
percent to the size of the total OECD economy by 2030.
Reducing the gender gap by 25 percent
will add 100 million women to the G20
labor force by 2025.
The economic benefits of increasing gender diversity in the workplace make a strong case for
encouraging female participation. The GCC has seen significant progress in recent decades—
female participation in the workforce has increased by 33 percent since 1993, and the GCC
has been one of the regions that has achieved higher progress over the past two decades
(see figure 1). Additionally, the trend is consistent across the GCC, with an increase in all
countries, ranging from 15 percent in Kuwait to a remarkable 63 percent in the UAE.
A.T. Kearney’s recent regional study on Power Women in Arabia suggests that recent increases
in female participation are due to rising levels of motivation to pursue a career and an increase in
women’s skills and capabilities (see figure 2 on page 3). It is not surprising to see an increase
Figure 1
Female labor participation in the GCC now stands at 38 percent,
while male participation is 2.5 x as much
Female labor participation ratio
2013, %
Female labor participation ratio
1993 vs. 2013, % of female population
+19%
+29%
+63%
+15%
+58%
+36%
Bahrain
<30%
30%–
40%
41%–
50%
51%–
60%
61%–
70%
>70%
1993
Kuwait
Oman
Qatar
Saudi
Arabia
United
Arab
Emirates
2013
Sources: World Bank statistics; A.T. Kearney analysis
Power Women in Arabia: Shaping the Path for Regional Gender Equality
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Figure 2
Reasons for change in female employment
Relevant
Irrelevant
Interest in working
or need to work
31%
Skills and capabilities
27%
Socio-cultural
environment
11%
Infrastructure
support
12%
Corporate culture
or mindset
23%
14%
18%
27%
18%
19%
17%
18%
17%
16%
20%
14%
16%
12%
16%
10%
39%
19%
26%
33%
28%
Note: Percentages may not resolve due to rounding.
Source: A.T. Kearney gender equality study, October 2015
in female participation in the workforce when women in the GCC dominate school campuses—
for example, 76 percent of total tertiary education students are women in UAE, 88 percent in
Qatar, and 52 percent in KSA.2
Despite significant progress over the years, the participation of women in the regional
workforce remains one of the lowest globally, with the GCC falling behind other countries in
capitalizing on the investment in education. In fact, the female labor participation ratio (FLPR)
in two of the largest countries, Saudi Arabia and Oman, is below 30 percent. Furthermore, in
the best-positioned country—Qatar, with a 51 percent FLPR—only half of the female population
over 15 years of age is economically active.
There is no single factor that explains this lower participation; it is, instead, a combination of
multiple elements. Forty-four percent of respondents identified “cultural barriers” and ”lack of
support“ as the top challenges women face. However, responses were widely distributed: for
example, ”lack of opportunities,“ the factor considered the least relevant, was still highlighted
as a key reason by 17 percent of the participants.
Many GCC policy makers are actively addressing the existing challenges. They have recently
introduced a range of empowerment measures across the political, business, and educational
arenas to level the playing field for women in the workforce. These measures range from
creating the necessary regulatory environment (such as the 60-day maternity leave introduced
by the Qatar government) to strengthening the existence of role models in society (for example,
KSA appointed 30 women to the country’s top advisory Shura Council in 2013 and, in 2015,
Saudi women stood as candidates and cast their votes in municipal elections for the first time).
The private sector is following through, with several companies offering incentives to attract
and retain women in the workplace (for example, free nursery services and flexible work
schedules). Gender diversity is now part of the strategic agenda at more than half of the private
companies in the GCC, and 56 percent of respondents working for such companies say that
female employment has grown over the past five years (see figure 3 on page 4).
World Bank Report on tertiary education (2014)
2
Power Women in Arabia: Shaping the Path for Regional Gender Equality
3
Women in Leadership: From Myth to Reality
Twenty years ago, there was not a single female CEO at a Fortune 500 company, and the share
of female board members was below 9 percent. The share of female CEOs and board members
at Fortune 500 companies now reaches more than 20 percent —which, is still far from equal
representation, but it means that women head 26 major global firms.3
The ratio of women in senior positions varies across regions, from 35 percent in the Americas
to 29 percent in Africa, 26 percent in Asia, 21 percent in Europe and a meager 9 percent in the
GCC. Within the GCC region, the ratio varies from 7 percent in Saudi Arabia and Qatar to the
highest level of 14 percent in Kuwait. Despite these regional differences, the challenge remains:
what is required to close one of the world’s largest gender gaps?
At board level, the contrast between the GCC and the rest of the world is even more striking.
In 2014, 17 percent of board members at Fortune 500 companies were female. Shares of board
seats held by females in the GCC countries in the same year ranged from 0.01 percent in Saudi
Arabia to 1.7 percent in Kuwait.4
The study shows the majority (80 percent) of respondents believe that women and men
are equally capable leaders. Interestingly, the study also reveals that the majority of women
(55 percent) believe they have the same career opportunities as men. Men are more optimistic,
with 85 percent believing that men and women have the same opportunities.
Figure 3
Female employment levels in GCC companies 2015
% respondents
3%
Decrease
3%
Is gender parity part of the
strategic agenda of your company?
No change
42%
No change
56%
Increase
57%
No
40%
Increase
Decrease
Yes
60%
40%
Gender parity not part
of the strategic agenda
Gender parity included
in the strategic agenda
Note: Percentages may not resolve due to rounding.
Source: A.T. Kearney gender equality study, October 2015
Catalyst Report, ILO Statistical Database
3
4
The Gender Gap Report 2014, World Economic Forum & United Nations Statistics Division; Catalyst Report, ILO Statistical Database
Power Women in Arabia: Shaping the Path for Regional Gender Equality
4
To get more GCC women into leadership roles it is important to overcome the barriers and
impediments to female career progression. The key areas explored in A.T. Kearney’s research
were (1) will and ambition to pursue a career, (2) skill set necessary to succeed, (3) presence of
opportunities to advance in the business place, and (4) influence of society and culture.
The A.T. Kearney study highlights that women in the GCC are ambitious and value their careers.
They are confident in their contribution to the workplace, and they do not believe that having
a family should be an impediment. Eight out of 10 women surveyed attach a high importance to
their career, and only 7 percent are working exclusively for financial gains. Women in the GCC
are also ambitious, with 62 percent aspiring to a management role within the next seven years,
and more than 50 percent aiming at a senior or board-level position.5
In addition, the increasing number of highly educated and qualified women in society offers an
untapped pool of talent. It is not lack of will or skills that rests behind the leadership gender gap
in the GCC workplaces.
The share of women business leaders in
the GCC is much lower than in other regions.
Despite the ambition level and qualifications, one of the impediments for more women leaders
that was identified in the study were different management profiles. More than 60 percent of
the respondents believe that women lack risk-taking ability, and more than 30 percent think
that women could do better in networking and competitiveness. On the other hand, most
respondents rate women high on people-related skills. However, these perceived differences
do not justify the gap of women leaders identified.
Another interesting insight emerges: although on average half of the respondents have
witnessed cases of gender discrimination, the study results indicate it is significantly less
frequent in senior positions than in junior positions. This could mean that once a woman
breaks through the glass ceiling, gender stereotypes do not apply as strongly. Achieving a
certain scale and ensuring the existence of strong role models becomes crucial to gender
equality in the corporate world.
Women in Entrepreneurship:
Creating the Business of Tomorrow
The attractiveness and ease of starting a business has improved globally, as well as regionally,
for both men and women. Rates of total female entrepreneurship are steadily on the rise across
regions, with female total entrepreneurship activity (TEA) growing at an average rate of
8 percent since 2005.6 The Middle East and North Africa (MENA) region, including the GCC,
grew at an average rate of 9 percent over the same period.
5 Women’s Careers in the GCC – The CEO Agenda (Pearl Initiative)
6 TEA is the measure of those in the process of starting a business and those running a business that has not yet reached the established
business phase of 3½ years. Female TEA is measured as a percentage of the total female population and is compared year over year.
Power Women in Arabia: Shaping the Path for Regional Gender Equality
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Despite recent progress, rates of female entrepreneurship in the GCC have remained low
compared to the rest of the world. In 2009, the GCC—at only 3.5 percent—fell well below the
global average of 8.8 percent. At 10.5 percent in 2014, the GCC managed to approach the global
average of 11.8 percent, but still remained far behind other regions of the world, particularly
Latin America, the Caribbean and sub-Saharan Africa (see figure 4).7
More striking than low rates of female TEA, the GCC faces the greatest gap between male and
female TEA in the world. The global average ratio of male to female TEA is 2.1 to 1, with 2.1 male
entrepreneurs for every female entrepreneur, whereas in KSA, for example, this ratio is 10 to 1.8
Throughout the GCC, rates of business ownership by gender reflect this discrepancy (see figure
5 on page 7). In the UAE and Kuwait, 2 percent of women own businesses compared to 7 percent
of men. In Bahrain and Saudi Arabia, the difference is 8 percent, and in Qatar the difference is
11 percent. However, the difference in start-up intentions across GCC countries is smaller. In Qatar,
32 percent of the female population have start-up intentions compared to 40 percent of the
male population. In every country except KSA, rates of female start-up intentions are higher
than rates of actual female business ownership.9
The results of A.T. Kearney’s study suggest that this discrepancy is due to lack of opportunity.
Almost 70 percent believe there is still a wide gap between the opportunities enjoyed by male
and female entrepreneurs. When asked to explain why, most respondents highlighted mainly
cultural reasons, saying women were not encouraged to become entrepreneurs.
Figure 4
Female total entrepreneurial activity (TEA)1
TEA rates globally2
GCC
2009
2011
Global average
2014
17.3
17.5
25
15.3
15.0
16
10.4
9.4
7.7
10
5.8
4.1
East
Asia
and the
Pacific
12
8.1
Europe
and
Central
Asia
5.1
3.5
GCC
5.1
4.3
North
America
South
Asia
SubEast
Saharan
Asia
Africa and the
Pacific
Europe
and
Central
Asia
GCC
Latin
MENA
America
and
Caribbean
North
America
South
Asia
1
Female TEA is measured as a percent of the total female population and is compared year over year.
2
South Asia data not available for 2009
11
6
3.0
Latin
MENA
America
and
Caribbean
10
SubEast
Saharan
Asia
Africa and the
Pacific
Europe
and
Central
Asia
5
GCC
Latin
MENA
America
and
Caribbean
North
America
South
Asia
SubSaharan
Africa
Sources: Global Entrepreneurship Monitor, GEM Key Indicators 2009-2014
Global Entrepreneurship Monitor, GEM Key Indicators 2009 – 2014
7
Global Entrepreneurship Monitor, GEM Key Indicators 2009 – 2014
8
9
2012 GALLUP poll report, “Lack of Mentors May Hinder Women’s Entrepreneurship in the GCC”
Power Women in Arabia: Shaping the Path for Regional Gender Equality
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In addition to cultural barriers, women are also impacted by the broader systemic challenges
faced by all entrepreneurs in the region. In the 2015 Ease of Doing Business Report published by
the World Bank, the UAE ranked 58 out of 189 economies for “ease of starting a business” with
the other GCC countries ranking between 100 and 150. The mean score across the GCC is 84.10
Entrepreneurs from the GCC region highlight three specific challenges as the most important.
Access to capital is the most significant challenge with more than 70 percent of entrepreneurs
from this region identifying it as a primary obstruction. Additionally, 62 percent of regional
entrepreneurs consider bureaucratic procedures and red tape a key obstacle. In the UAE
specifically, 68 percent of entrepreneurs say finding talent is a major hurdle. This sentiment
is echoed by businesses outside of the region attempting to expand into the GCC.11
For female entrepreneurs within the region, these fundamental challenges are exacerbated.
Using mentors to gain access to capital is widely acknowledged to support entrepreneurs.
Finding mentors for women entrepreneurs within the GCC countries is challenging. In Bahrain,
for example, 57 percent of male entrepreneurs report having access to a mentor, compared to
38 percent of female entrepreneurs. In the other GCC countries, the discrepancy is smaller
and ranges between 9 percent and 15 percent.12
In an interesting study by the Global Entrepreneurship and Development Institute (GEDI), a
country’s success in supporting female entrepreneurs is attributed to three influencing factors:
entrepreneurial environment, entrepreneurial ecosystem, and entrepreneurial aspirations.13
Figure 5
GCC rates of business ownership by gender reflect the gap between
male and female total entrepreneurial activity (TEA)
Business ownership
Start-up intentions
40%
32%
17%
11%
3%
Bahrain
Women
11%
10%
7%
6%
2%
2%
KSA
Qatar
Kuwait
7%
2%
United Arab
Emirates
4%
7%
Bahrain
2%
5%
KSA
4%
Qatar
Kuwait
8%
4%
United Arab
Emirates
Men
Sources: Global Entrepreneurship Monitor, GEM Key Indicators 2009-2014
2015 Ease of Doing Business Report, World Bank
10
2015 World Bank Ease of Doing Business; 2015 WAMDA report, “Exploring Trends and Challenges to Scale for Startups in Egypt, Jordan,
Lebanon, and the UAE”; 2014 Dubai Silicon Oasis and Google MENA report, “The Journey of a Technology Startup in the MENA Region”
11
2012 GALLUP poll report, “Lack of Mentors May Hinder Women’s Entrepreneurship in the GCC”
12
Entrepreneurial environment is measured by opportunity perception, cultural support, willingness, and risk, among other factors.
Entrepreneurial ecosystem is measured by the quality of human resources, competition in the relevant country, and the health of the
technology sector, among other factors. Entrepreneurial aspirations measure innovation, growth rates, and internationalization,
among other factors.
13
Power Women in Arabia: Shaping the Path for Regional Gender Equality
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Globally, the most advanced countries in terms of female entrepreneurship rates have uniformly
high ratings across most of the above criteria. Zooming in on the Middle East, UAE and KSA
rank highly in some of these areas. For example, UAE’s strength lies in its highly educated
entrepreneurs, high levels of technological absorption, and strong export focus. KSA, instead,
leads in opportunity recognition and has similarly high rates of technology absorption and
transfer. Other areas, such as tier 1 financing, networking, access to childcare, and women’s
legal rights, present opportunities for improvement for the region as a whole.
Across the world, there is an observable correlation between the presence of a high number of
large-scale initiatives promoting female entrepreneurship and the respective country’s position
in the ranking of top countries for women entrepreneurs. The United States, the Netherlands,
and Nordic countries (Denmark, Sweden, Norway, Finland, Iceland) occupy most of the top 10
positions in terms of female entrepreneurship.
When looking at women leaders or
women entrepreneurs, the GCC still faces
a large gap vis-à-vis other parts
of the world.
There are also some visible efforts in the GCC region to develop a more robust ecosystem for
female entrepreneurs, with UAE, Qatar, and KSA leading the way. Select examples include
WOMENA, an angel investor group for women only, based in the UAE; Hadafi, a KSA-based
female entrepreneurship development program; and the Roudha Center, a Qatari source for
financial and legal advice and training for female entrepreneurs.
Currently, many ongoing initiatives are aimed at both male and female entrepreneurs, with
few specifically targeting women. More support for female entrepreneurs is crucial, with a
focus on specific development areas: financing, mentorships and networking, and international opportunities; for female entrepreneurship in the GCC to realize its full potential, there
will also need to be a cultural shift toward supporting female innovation and entrepreneurial
aspirations.
Shaping the Path for Regional Gender Equality
A.T. Kearney’s study confirms the great progress achieved in the GCC regarding gender
equality in the workplace. However, gender equality still represents a clear opportunity for
improvement. From both the perspective of women in leadership positions and the prevalence of female entrepreneurs, the GCC faces a large gap vis-à-vis other leading regions.
Advancement toward gender parity requires moving beyond incentivizing women to pursue
higher education or increasing female participation in the workforce. It must include
systematic efforts to propel women to reach the leadership positions they seek and deserve,
to achieve their professional dreams and aspirations. There is no simple or quick solution to
overcome the various barriers that hamper women from reaching the top of the ladder.
Power Women in Arabia: Shaping the Path for Regional Gender Equality
8
A concerted effort of all stakeholders—businesses, policy makers, academic institutions and
families—is required to make gender parity a reality.
• Policy makers can support this journey by continuing to set an adequate regulatory
framework and by actively supporting the empowerment of women. The Nordic countries
represent a remarkable example of the power of creating a regulatory framework, with
generous maternity leave laws, state child care, and quotas requiring publicly listed firms
to allocate 40 percent of corporate board seats to women, among others.
• Companies can enable the progress by decreasing the limitations for an effective
participation of women in the workplace throughout the different phases of their lives
(for example, child-care options and flexible work arrangements) and ensuring the existence
of strong role models in the organization (for example, leveraging human resources tools
such as mentorship, sponsorship, and leadership development programs).
• Each one of us, as individuals, needs to continue driving this transformation, by actively
contributing to change the culture and the mindset of the ones who surround us—at work
and at home.
Authors
Bob Willen, managing director,
Middle East
robert.willen@atkearney.com
Ada Perniceni, partner, Middle East
ada.perniceni@atkearney.com
Rudolph Lohmeyer, director,
Global Business Policy Council
rudolph.lohmeyer@atkearney.com
Isabel Neiva, principal, Middle East
isabel.neiva@atkearney.com
The authors wish to thank Aania Alam, Boutayna El Oufir, Elena Nastas, Laura Miret, Madeline Sanderford and
Uliana Shchepelina for their valuable contributions to this paper.
Power Women in Arabia: Shaping the Path for Regional Gender Equality
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