Saudi women are taking major strides in starting their own businesses as the kingdom implements policies that ease their access and support growth. However, key barriers still remain, ranging from a gender financing gap to exclusion from influential circles.
Some 78 per cent of women in Saudi Arabia are considering starting their own business, according to Mastercard’s latest research released on March 5, ahead of International Women’s Day on March 8.
Since its launch in 2016, the kingdom's Vision 2030 plan to overhaul the economy has heralded legal and social reforms that have helped more women to set up businesses without male consent, travel independently and drive.
Changes in guardianship, labour and family laws have gradually removed many practical roadblocks that hindered female entrepreneurship in Saudi Arabia. The abolition of guardianship laws restricting work and travel, the introduction of anti-discrimination policies and the expansion of maternity and childcare benefits are aimed at economic inclusivity.
Government-backed initiatives, such as those provided by the Social Development Bank and Monsha’at – which provides services and resources for small and medium-sized businesses – also support female entrepreneurs.
The ascent of more women leaders playing a larger role in business in Saudi Arabia highlights a dramatic shift from about a decade ago as the policies come into effect, leading to higher employment, leveraging untapped talent, boosting household incomes and reducing the economy's reliance on oil revenue.
Hatoon Abdullatif, a Saudi national who in 2022 founded Jeddah-based The Nostalgia Club, an online store that sells a curated collection of pr-eloved luxury and vintage designer items, said: "The new laws have made it easier to start and run a business by removing many obstacles. Women now have more independence in managing their businesses, creating new opportunities for growth and success."
When Reem AlJizawi, founder and chief executive of COREACH, set up a coaching organisation in Saudi Arabia 13 years ago, gaining credibility and trust as a young Saudi woman entrepreneur in a predominantly male-dominated market was initially “challenging”, she said. In addition access to funding, building initial clientele, and navigating regulatory frameworks were also “significant barriers.”
“Before Vision 2030, women entrepreneurs faced substantial structural and societal limitations,” Ms AlJizawi said.
“Since its announcement, there's been a transformative shift, notably in legal reforms, increased societal acceptance and supportive governmental initiatives specifically aimed at empowering women in business. Around 2018-2019, I personally noticed accelerated support through more accessible platforms for funding, networking opportunities and heightened respect for women leaders.”
Beyond affirmative action
Yet despite this progress, challenges persist.
Female start-up founders say they still face difficulty in accessing funding compared to their male peers, unconscious biases and exclusion from the male-dominated majlis gatherings – where key networking opportunities and decision-making happens.
start-up founder and investor
Saudi entrepreneur and investor Marriam Mossalli wears multiple hats as founder of luxury communications and marketing agency Niche Arabia, co-founder of clean beauty e-commerce platform Powder Beauty and investor and executive board adviser for non-alcoholic beverages brand Kin Euphorics.
Changes in Saudi Arabia have increased women's visibility in the workforce, elevated them to leadership roles and empowered them to “champion their femininity”, said Ms Mossalli.
But she emphasised that it is important for female entrepreneurs to go beyond affirmative action and demonstrate their capabilities.
“When you come to Saudi Arabia with your [X] chromosomes and your green passport, the doors open for you. As a woman, I feel the doors are open. The issue is how you prove yourself in there and make sure you're not just a token gesture, like 'Oh, we have a girl on the team',” Ms Mossalli said.
She says fund-raising remains difficult for women entrepreneurs as they are entering a predominantly male sphere.
“Who are the gatekeepers to finance? They are mostly males. There is very few women in that world … we need more women in those roles,” said Ms Mossalli.
start-up founder and investor
“We are trying to break into the boys' club. I don't think it has to do with any of our capabilities in terms of not having the right command of numbers. It's literally just a boys' club.”
Moreover, female entrepreneurs face an additional layer of gender bias. "We are underestimated from the moment we walk in. Like 'Oh, did baba [father] fund this? How did she start?' You get that bias for sure," Ms Mossalli said.
The Mastercard study shows that 32 per cent of women surveyed say that lack of funding is the primary challenge to starting a business. Some 39 per cent of female start-up founders cite not knowing where to start with a business plan as a major obstacle, while women are more than twice as likely as men – 24 per cent versus 11 per cent – to cite lack of confidence as a barrier to starting a business, Mastercard said.
In a study of Saudi Arabia's top 200 most funded start-ups between 2014 and 2023, data showed that male-only start-ups, which make up 91 per cent of Saudi Arabia's start-ups, claimed 98 per cent of total VC funding, according to Magnitt, which captures data on start-ups and fund-raising in the Mena region.
By contrast, female-only start-ups, which accounted for 3 per cent of the total, received just 0.4 per cent of the VC funding.
Ms AlJizawi said it is often harder for women-led start-ups to secure funding because of “persistent gender biases, limited representation in investment committees and fewer established female entrepreneur role models”.
“Investors often unconsciously gravitate towards familiar demographics and business models, typically favouring male-led ventures.”
While sectors such as beauty, wellness and fashion are popular choices among female entrepreneurs in Saudi Arabia, businesswomen say there is a noticeable shift towards tech-driven sectors such as FinTech, AI, EdTech and health care, where women are increasingly breaking into high-growth and high-impact industries that are traditionally largely dominated by men.
Other female investors are encouraging this trend. Dara Holdings, the investment firm of Saudi Arabian billionaire Lubna Olayan, last month participated in a $10 million seed funding round for qeen.ai, a Dubai-based artificial intelligence start-up co-founded by former Google executive Dina Alsamhan. The announcement underlined the regional female investors' move to back women-led businesses in the region that is also seeing a gender funding gap.
Ms AlJizawi said she had encountered some difficulties in pitching to mostly male venture capitalists but that presenting a strong business case helped her overcome these hurdles.
“Presenting to predominantly male investors often required additional effort to overcome unconscious biases related to gender stereotypes, such as questioning my business acumen or underestimating our market potential. However, consistent preparation, strong data-driven pitches, and assertive confidence allowed me to shift these perceptions eventually,” she said.
Gender balance among investors
Saudi female entrepreneurs are urging for greater gender diversity among investors to level the playing field, increase their chances for access to venture capital funding and address gender bias in decision-making about capital allocation.
“Vision 2030 is helping, but women often face more challenges, especially in industries outside the norm. There is growing support for women-led businesses, but more diverse investors are needed to ensure equal funding opportunities," Ms Abdullatif said.
However, simply adding more women into the mix does not automatically lead to better funding opportunities for female founders, some female entrepreneurs have said.
“While female angel investors ideally could be more inclined to back women-led start-ups, my experience suggests it varies significantly,” Ms AlJizawi said.
“Ultimately, investment decisions remain predominantly driven by business viability and potential returns rather than gender solidarity. However, increasing the number of female investors overall can indirectly create more inclusive opportunities.”
Saudi entrepreneur Haya Sawan has founded several businesses and is now considering becoming an angel investor to support women-led start-ups. Ms Sawan, the founder of SheFit, a female fitness brand that started as an outdoor boot camp and grew in a gym with two branches with thousands of members, also acquired Motion Academy that is dedicated to sports and fitness education.
“I have had several meetings with female-founded and female-run start-ups, and I am genuinely interested in getting involved as an angel investor. Seeing the passion, innovation, and resilience of women entrepreneurs first-hand has only reinforced my belief in the importance of investing in women-led businesses,” Ms Sawan said.
It will take time for more women to be "on both sides of the table" as investors and entrepreneurs and for women to be in leadership positions in investment firms, Ms Mossalli said.
The entrepreneur and investor says she backs enterprises that “align with her values” in terms of being female-owned, sustainable and make a positive impact.
"I want to give these women a chance...a lot of these women don't get a lot of funding," she said, adding it is important to show women that they can be both entrepreneurs and investors.
Saudi women entrepreneurs would also benefit from more mentorship, focused training programmes and networking circles, they said.
“Networking opportunities, both locally and globally, would help expand their business connections. These improvements would further strengthen the role of women in Saudi Arabia’s entrepreneurial scene,” Ms Abdullatif said.
Mentorship platforms that connect women with successful entrepreneurs, industry leaders and investors would be an “invaluable” resource, Ms Sawan said.
“Getting more access to mentors about soft skills and how to empower the team, how to lead by example and giving the right people the right positions are some of fundamentals in business that are not often taught,” she said.
Asked for advice for younger peers or other Saudi women founders entering the market, Ms Mossalli said that women should tap into their “super power” of collaboration.
“Continue networking, push through the door and don't feel like you need to be liked, [investors] just have to respect you,” she said.
