Closing MENA’s Gender Finance Gap Could Open New Markets for Banks, Businesses and Investors

An OECD report warns that financial exclusion is limiting women's economic participation in MENA, despite rising education levels and billions in development assistance. It urges governments, development partners and private investors to expand innovative financing, improve access to credit and support women-led businesses to unlock economic growth and employment.

The Organisation for Economic Co-operation and Development (OECD), with support from the European Union and research contributions from Plan Catalyst, has warned that financial exclusion is preventing millions of women across the Middle East and North Africa (MENA) from contributing fully to economic growth. Its 2026 report, Financing Women's Economic Empowerment in MENA, examines development financing and investment opportunities across Algeria, Egypt, Jordan, Lebanon, Libya, Morocco, the Palestinian Authority and Tunisia. The findings show that despite improvements in education, women continue to face major barriers to employment, business ownership and financial services, limiting economic productivity and private-sector development.

Women accounted for 45% of tertiary education enrolment in 2023, compared with 41% for men. However, female labour force participation remained around 19%, compared with about 70% for men. Only 13.4% of businesses reported female ownership participation, compared with a global average of 34%. Financial access is similarly unequal, with 42% of women holding bank accounts against 57% of men. Research cited by the OECD suggests that closing gender gaps in labour force participation could increase regional GDP by approximately 54%, highlighting the scale of the economic opportunity.

Development Finance Is Growing, but Funding Pressures Threaten Progress

International development assistance has increasingly supported women's economic empowerment. Annual bilateral official development assistance incorporating gender equality objectives in selected productive sectors increased from approximately $410 million in 2012–2013 to $1.6 billion in 2022–2023. The share of screened assistance integrating gender equality objectives rose from 16% to 47%.

However, shrinking development budgets threaten these gains. Global official development assistance declined by approximately 23.1% in 2025, raising concerns about continued financing for entrepreneurship, financial inclusion and institutional reforms.

The OECD identifies approximately $3.5 billion annually in development finance incorporating gender equality objectives across the eight economies during 2022–2023. Another $10 billion annually was not assessed using the OECD gender equality policy marker, making its contribution to women's empowerment difficult to determine.

For development partners, this highlights the importance of stronger monitoring, transparent reporting and measurable results. Future investments must demonstrate whether financing improves women's access to credit, employment and business opportunities.

Country Differences Expose Major Gaps in Economic Opportunities

Development financing patterns vary considerably across MENA. Egypt received approximately $1.9 billion annually in bilateral assistance for selected productive sectors during 2022–2023, but only 40% incorporated gender equality objectives.

Lebanon recorded the highest share at 92%, followed by the Palestinian Authority at 78%, Algeria at 65%, Morocco at 53%, Jordan at 52%, Libya at 42% and Tunisia at 25%. These percentages measure the integration of gender objectives into financing, not actual improvements in women's economic outcomes.

For governments, the findings demonstrate the need to integrate women's economic participation into national development strategies rather than treating it as a separate social programme.

Infrastructure offers significant opportunities. Transport received approximately $2.1 billion in bilateral assistance during 2022–2023, yet gender considerations remained comparatively limited. Better public transport, reliable electricity and improved market connections could help women access jobs, operate businesses and participate in supply chains.

For private companies, expanding women's economic participation could increase the availability of skilled workers, suppliers and customers while strengthening domestic markets.

Innovative Finance Could Transform Women-Owned Businesses

Traditional bank lending remains difficult for many women entrepreneurs because of limited collateral, weak credit histories and unequal access to financial services. The OECD identifies credit guarantees, blended finance, digital banking and gender-focused investment as potential solutions.

The Middle East Investment Initiative has issued approximately $160 million in loan guarantees, covering 70% of eligible lending risks and up to 75% for women entrepreneurs. Women's share among borrowers increased from 13% to 27%, demonstrating how risk-sharing arrangements can encourage lending.

The SANAD Fund has facilitated approximately 644,000 loans worth $2.3 billion, with women representing 31% of active small-business borrowers. Its model combines financing with technical assistance to improve access to financial services.

Investment networks are also emerging. Egypt's Tiye Angels has trained more than 75 women investors and supported over 100 women-led start-ups, helping entrepreneurs access investment expertise and professional networks.

For banks and investors, these approaches offer opportunities to reach underserved markets. However, financing models must address repayment risks, limited business information and the need for affordable financial products.

Governments and Investors Must Turn Inclusion Into Growth

The OECD recommends coordinated reforms combining finance, business development, infrastructure and stronger institutions.

Governments should improve financial regulations, support digital banking, strengthen alternative collateral arrangements and ensure that public investments consider women's economic needs. Better financial education and business training could also help entrepreneurs manage costs, access markets and expand operations.

International development partners should use concessional financing and guarantees to attract responsible private investment while linking support to measurable outcomes. Financial institutions should develop products suited to smaller businesses, including flexible repayment arrangements and financing based on business revenues.

Private investors could find opportunities in women-led enterprises across agriculture, manufacturing, technology and services. However, successful investment requires appropriate risk assessment, stronger business networks and continued support for entrepreneurs.

The report emphasises that progress must be measured through actual lending, business growth, employment creation and improved financial access rather than financing commitments alone.

Ultimately, unlocking women's economic potential could strengthen household incomes, expand consumer markets and improve regional competitiveness. With international aid under pressure, MENA governments and development partners face a growing need to use existing resources more effectively and mobilise private capital to build a more inclusive and productive economy.