Since the implementation of Vision 2030 and the beginning of a new era for Saudi women and entrepreneurs, their involvement and impact in different areas of economic development, including politics, technology, the military, space, sports, and business, has noticeably increased.
Saudi women, driven by government support, societal encouragement, familial backing, and personal ambition, are increasingly venturing into the world of entrepreneurship. They have established businesses in various sectors, ranging from small-scale retail enterprises to cutting-edge technology companies.
Almost half of Saudi women plan to start a business
The Prince Mohammed bin Salman College of Business and Entrepreneurship (MBSC) in partnership with the Babson Global Center for Entrepreneurial Leadership (BGCEL) recently announced the release of the third edition of the Saudi Women’s Global Entrepreneurship Monitor (GEM) Report.
The report, which encompasses eight years of data, reveals that nearly half of Saudi women express intentions to start a business within the next three years, a 30 percent increase over previous years. The percentage for men reached 39 percent was also higher than the previous year. This rise reflects the success of Saudi Arabia’s efforts to nurture an inclusive environment where women thrive at all phases of business development, contributing positively to society across all age groups, education levels, and income brackets.
Among the high-income economies participating in the report, Saudi Arabia reported the highest total entrepreneurial activity rate for women at 23 percent compared to 27 percent for men.
Women entrepreneurs in Saudi Arabia were also highly motivated by considerations of income where 93 percent cited building wealth and/or necessity as reasons for opening a business. A similar share of men entrepreneurs reported these motivations.
Strong personal and professional networks
Saudi women entrepreneurs benefit from strong personal and professional networks, with 86 percent of women knowing another entrepreneur personally. Additionally, a significant proportion of women investors support close family and friends in launching new ventures. This trend is driving not only economic growth but also community resilience and self-reliance, as women investors support other women to strengthen the Kingdom’s business landscape.
Highlighting the influence of women entrepreneurs in the consumer sector and beyond, the report reveals a strong commitment to societal value, with over 75 percent of women entrepreneurs implementing strategies to maximize social impact and reduce environmental impact.
“Saudi Arabia’s entrepreneurial landscape is enriched by the contributions of women, whose role continues to expand across all areas of business. The GEM KSA Women’s Report demonstrates Saudi Arabia’s commitment to fostering innovation and inclusivity, and we are proud to contribute to this vital progress,” stated Dr. Zeger Degraeve, dean of MBSC.
Women’s established business ownership rate surges
After exhibiting rates below 4 percent from 2016 through 2021, the established business ownership (EBO) rate among women in Saudi Arabia increased to 14 percent in 2023. The report also revealed that the rate for men was the same. Among the high-income economies participating in the GEM survey in 2023, only the Republic of Korea reported a higher EBO rate for women.
In 2023, 6 percent of both women and men reported that in the previous year, they had exited a business that continued operating, and 3 percent of both genders had closed a business.
Another interesting finding reveals that among women in Saudi Arabia who exited or closed a business because it was unprofitable, 29 percent stated that they had started another business. Meanwhile, the rate for men was lower at 16 percent. Conversely, among women who exited or closed a business in the previous year because they could not obtain funding, 16 percent had started another business compared to 29 percent for men.
Saudi women’s labor participation rises
Saudi women’s contributions don’t stop at entrepreneurship only. The participation of Saudi women working in the technology sector jumped from 11 percent in 2017 to 28 percent in 2021, higher than the European average of 18 percent. Saudi women have also successfully entered traditionally male-dominated areas such as the military, where they fulfil various functions across the defense sector and security forces.
They also actively engage in a wide range of sports, including auto racing, and have made a significant impact in both national and international competitions. In 2023, a woman participated in a mission to space, becoming the first Saudi woman astronaut. The participation of women in the Saudi labor market has notably increased. In fact, it has doubled in the past six years, supported by government initiatives and programs focusing on equal wages, childcare services and transportation.
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