Knowledge Hub

The ripple effect of women’s economic empowerment

By: Devayani Clark

February 2025

3 min read

Economic Empowerment, Finance, MENA

Empowering women financially doesn’t just benefit individuals—it transforms families, communities, and entire economies. According to the UN, women reinvest 90% of their income back into their families, compared to 35% by men. This reinvestment leads to better education for children, healthier households, and stronger communities. Furthermore, the World Bank highlights that women’s labour force participation in the Middle East and North Africa currently stands at 19%. Closing the gender gap in employment could increase GDP per capita by 51% in the average MENA economy.

A Changing Landscape in the Middle East

The ripple effect of women’s empowerment is already evident across the Middle East:

  • In Saudi Arabia, female labour force participation has risen from 16.4% in 2015 to 35.8% by 2024, exceeding Vision 2030’s target of 30% (Financial Times, 2024). This reflects the success of the Kingdom’s reforms aimed at increasing women’s access to jobs and creating a more inclusive market.
  • In the United Arab Emirates, over 70% of university graduates are women, paving the way for future leaders in STEM, business, and public policy (Stimson Center, 2024).

Closing the gender gap in employment could increase GDP per capita by 51% in the average MENA economy.

Stories of Transformation: The ripple effect in action

Theoretical Backing for the Ripple Effect

Although these stories are anecdotal, they are strongly reinforced by economic theories that highlight the measurable impact of the ripple effect.

  1. A Stronger Economy: When women enter the workforce, especially in non-traditional roles, they bring fresh perspectives and skills. In Saudi Arabia, for instance, more women working in sectors like technology and healthcare means less reliance on oil—a big step toward a diversified and sustainable economy. With more women contributing, GDP isn’t just growing; it’s evolving. (Solow-Swan Growth Model)
  2. A Better Future for Families: Studies show that when women earn and learn, they invest back into their families—through education, healthcare, and better opportunities for their children. It’s like planting seeds in fertile soil: what grows benefits the entire family tree, generation after generation. (Becker’s Human Capital Theory)

As women’s participation increases, societies will become more resilient, communities will grow stronger, and economies will flourish.

A shared future

We are at a turning point. Arab women are stepping into roles they previously did not have access to, transforming their families, workplaces, and societies. The ripple effect of empowering women is not a lofty idea. It’s a force of change. When women receive support, they create opportunities for others. This collective progress strengthens economies, builds resilient communities, and improves lives for everyone.

Imagine a world where every woman has the tools to succeed. A world where the progress we’ve seen so far is just the beginning. By empowering women, we’re not just helping them; we’re creating a brighter world for all of us. The ripple effect has already begun—and we’re all in for a better, brighter ride.