84% of women in the UAE consider launching a business, study finds

A new study by Mastercard reveals that 84% of women in the UAE are considering launching their own business, highlighting a surge in female entrepreneurship ahead of International Women’s Day on March 8.

Entrepreneurship is gaining traction among both genders in the UAE, with 49% of women and 47% of men identifying as business owners. Financial independence, flexibility, and social impact are among the top motivators driving women toward entrepreneurship.

Millennials and Gen Z women leading the way

The research shows that millennial women are at the forefront of this shift, with 53% exploring business ventures, while 44% of Gen Z women are also entering the entrepreneurial space. The food and beverage (26%), online selling (22%), and cosmetics (19%) sectors are the most popular among women-led businesses in the UAE.

Gina Petersen-Skyrme, Country Manager for UAE and Oman at Mastercard, emphasized the importance of continued support:

"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."

Optimism vs. confidence gap

Despite challenges, women-led businesses in the UAE remain optimistic, with 98% of female business owners expecting revenue growth in the next five years, compared to 85% of male entrepreneurs.

However, 31% of women still feel that launching a business is “not possible for someone like them,” reflecting a significant confidence gap. Lack of confidence is cited as a barrier three times more often by women (30%) than men (10%).

Challenges and side hustles as a solution

Funding remains the biggest hurdle, with 67% of women citing lack of financial resources as the primary challenge to starting a business. Additionally, 40% struggle with developing a business plan or accessing key infrastructure, underscoring the need for mentorship and resources.

To navigate these challenges, many women turn to side hustles for financial independence. The study found that 56% of women in the UAE have side businesses, slightly surpassing men (52%). Popular income streams include freelancing, tutoring, and content creation.

AI and digital security in women-led businesses

Technology is playing a crucial role in business operations, with 75% of female entrepreneurs regularly using AI. However, men are more likely to use AI for decision-making (61% vs. 54% of women), despite 85% of women entrepreneurs reporting significant time and cost savings from AI adoption.

Cybersecurity remains a growing concern, as 35% of women entrepreneurs have been targeted by fraudsters. While fewer women express concerns about digital fraud compared to men, secure online transactions remain a priority for business growth.

As more women embrace entrepreneurship, providing access to funding, mentorship, and digital resources will be key to ensuring their success in the UAE’s dynamic business landscape.