Women play a crucial role in global economic growth. According to research from the International Monetary Fund (IMF), reducing gender disparities in labor markets could boost gross domestic product (GDP) in developing and emerging economies by nearly 8%.

If the gender gap were closed entirely, the impact would be even more significant, potentially raising GDP in these nations by an average of 23%. Empowering women economically fosters greater income equality and diversification, contributing to more inclusive and sustainable growth. Overall, closing the gender gap could add $7 trillion to the global economy.

Gender Disparity and Poverty in Saudi Arabia

Saudi Arabia has made significant strides in gender equality, but disparities remain, particularly in economic participation. While the country has seen significant progress in recent years, women still face challenges accessing capital, business networks and certain industries. One in every 10 women globally is living in extreme poverty and economic barriers in Saudi Arabia have historically contributed to gendered income disparities.

Despite these challenges, Saudi Arabia’s recent economic reforms have drastically improved opportunities for women in the workforce and entrepreneurship. “Between 2017 and 2021, the Saudi female labor force participation rate doubled from 17.4% to 35.6%,” surpassing the Vision 2030 target of 30%. These numbers indicate a shift in economic priorities, but further policy support is needed to ensure long-term sustainability and equal access to financial resources.

Legal Reforms

Over the past decade, Saudi Arabia has implemented key legal reforms that have removed barriers for women in business. The World Bank’s Women Business and the Law 2024 report states that Saudi Arabia now scores a perfect 100 in laws affecting women’s decisions to work, pay equity, business ownership and pensions. These reforms include:

• Lifting restrictions on women starting and running businesses without male guardianship.
• Granting women the right to drive in 2018, increasing mobility and access to business opportunities.
• Anti-discrimination laws to ensure equal pay and employment opportunities.
• Government-led programs supporting women entrepreneurs through funding and mentorship initiatives.

These legal changes have fostered an environment where female-led businesses can thrive, further accelerating Saudi Arabia’s economic diversification goals.

Women Entrepreneurs Leading Economic Transformation

As a result of these reforms, Saudi women are increasingly shaping the country’s startup ecosystem. According to the 2021-2022 Women’s Report for Saudi Arabia by the Global Entrepreneurship Monitor, 95% of Saudi women consider entrepreneurship a good career choice, 93% see viable opportunities for new businesses and 90% believe it is easy to start a business.

One standout entrepreneur is Mounira Jamjoom, cofounder of Aanaab, an online professional development platform for teachers across the Middle East and North Africa (MENA) region. Aanaab collaborates with local and global institutions to offer short courses, qualifications and licensing programs that assist educators and strengthen the education sector.

Another trailblazer, Bayan Linjawi, launched Blossom, Saudi Arabia’s female-focused accelerator, which supports women-led startups in securing funding and scaling their businesses. Today, initiatives like Monsha’at, Saudi Arabia’s Small and Medium Enterprise (SME) authority, promote female entrepreneurship by providing grants, training and business development support.

A Future Driven by Women Entrepreneurs

The rise of women entrepreneurs in Saudi Arabia signals a transformative shift in the country’s economic landscape. With legal reforms, social acceptance and government-backed initiatives, the path for women in business is auspicious. However, sustained efforts are required to ensure that all women, including those in rural areas and lower income brackets, have the same opportunities.

As Saudi Arabia progresses toward its Vision 2030 goals, empowering women entrepreneurs will be crucial in driving economic diversification and long-term prosperity. The momentum is strong, but the journey toward full gender equality in business is far from over. By continuing to invest in policies that support female-led enterprises, Saudi Arabia can set a global example of economic inclusion and sustainable growth.

– Linnéa Matlack

Linnéa is based in Boston, MA, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr