MENA's startup boom leaves women behind

The region now has 33 unicorns and a thriving ecosystem. But female founders remain woefully underrepresented in accessing capital.

Just 0.14% of funding goes to women

In the first half of 2026, female-founded startups secured only $2.5 million of $1.7 billion in VC funding. Male founders raised $1.6 billion across 213 deals.

The gap has persisted for years

Between 2019 and 2025, mixed-gender and female-founded startups accounted for less than 4% of total equity transactions across the GCC.

Women are starting more businesses

51% of surveyed small businesses in MENA are owned by women, with 63% founded in the past five years. Abu Dhabi issued 3,058 new licenses to women in early 2026.

Male-dominated networks block deal flow

Gulf investor networks are still very male-dominated at decision-making levels. Deal flow follows networks, creating a structural barrier for female founders.

“Gulf investor networks are still very male-dominated, especially at decision-making levels. That matters because deal flow follows networks.”

Female investors back female founders

VC firms with at least one female partner are 2.3 times more likely to invest in female founders. Female angels allocate 35% to women versus 13% for male angels.

Women bootstrap to survive the gap

Female founders rely heavily on personal income streams and side hustles to self-fund. 56% of women entrepreneurs in the UAE run a side hustle.

“My experience with a lot of female founders is that they bootstrap. They are leveraging alternative personal income streams to self-fund.”

A catch-22 blocks major exits

Investors need success stories to unlock capital, but capital is needed to create those success stories. Women rely on government grants to bridge funding gaps.

Female founders build their own networks

Nabta Health's founder created 2022 Female Angels to identify and list female angel investors. The initiative now manages around 350 active angels, 44 of 79 being female.

“Out of frustration, I set up 2022 Female Angels with a group of friends to identify and publicly list 2,022 female angel investors across the region.”

Governments must seed targeted funds

Training programs alone won't move the dial. Governments, wealth funds, and family offices need to allocate capital specifically to female-led startups.

“I have been one of those vocal individuals stating that we need governments to step up and to seed funds targeted specifically at female founders.”