Finance
54% of women in MENA region lack understanding of investments, survey reveals
What lies for women in the MENA region?
As we anticipate the coming decade, it is essential to acknowledge the emerging trends for women in the MENA region. Identifying advancements in financial inclusion, entrepreneurial aspirations, and business education can empower women and play a role in fostering the economic growth of the region.
According to a study conducted by the Swiss banking group UBS, over half (54%) of women in the Middle East and North Africa perceive their understanding of investments as low, despite the exponential growth of their wealth in the region. UBS surveyed in partnership with Women in Business Arabia.
UBS survey insights
The Women and Investing in Mena report revealed that approximately 38 per cent of women in the region considered their investment knowledge to be at a medium level, while only 7.5 per cent regarded it as high.
The report, based on a survey of over 600 women in the Mena region, indicates an opportunity to promote investment literacy among women in the Middle East. It reveals that 62 per cent of those surveyed express a desire to become more actively involved in investing.
According to the Boston Consulting Group, women’s wealth in the Middle East, which amounted to $786 billion in 2020, is projected to experience a compound annual growth rate (CAGR) of 9 per cent. The report anticipates that it will reach $1 trillion by the year 2023. The expansion of women’s wealth in the Middle East raises further considerations and inquiries.
Economic empowerment: The surge in growth signifies that women in the region are acquiring economic influence and achieving greater financial autonomy. This can yield positive effects on their overall well-being and enhance their capacity to contribute to the economy.
Changing social norms: The trend implies a possible transformation in societal attitudes regarding women’s access to and control over financial resources. This may pave the way for additional progress in gender equality within the region.
Investment opportunities: The swift expansion provides a notable chance for the financial services sector to address the distinct needs and priorities of its female clientele.
While the overall figures reflect positivity, it is crucial to examine the distribution of this wealth among various countries and income brackets within the Middle East. Are the advancements concentrated within a select group of affluent women, or are they more widely distributed?
Crucially, it prompts essential inquiries such as: What obstacles still hinder women from accessing and overseeing their wealth? This might encompass disparities in inheritance laws, restricted availability of financial education, and cultural norms that discourage women’s involvement in financial decision-making.
Emma Wheeler, Head of women’s wealth, UBS Global Wealth Management said, “There is a need for conversation, education, and systemic support for women in the Mena region to better engage in discussions around finance, investment, and entrepreneurship. The industry needs to make strides with clear intentions, mentorship, encouragement, and continuity to help improve the accessibility of information and unlock the economic opportunities that diversity and inclusion bring to all.”
Evidence of women’s influence in finance
According to BCG’s research, women presently command a substantial 32% share of the world’s wealth, highlighting its significance. This statistic underscores the increasing economic strength and impact of women on a global scale. The consultancy estimates that this will experience a Compound Annual Growth Rate (CAGR) of 5.7 per cent, reaching $97 trillion by the year 2024.
Although 32% represents the global average, notable variations exist among different regions. Developed countries typically exhibit a higher proportion of wealth controlled by women compared to their counterparts in developing countries. Several elements contribute to this expansion, such as the growing participation of women in the labour force, increasing educational achievements among women, and a shift towards more gender-equitable inheritance laws.
Despite advancements, women continue to encounter various challenges in attaining financial equality. These obstacles encompass gender pay disparities, restricted financial access, and societal norms that curtail their economic opportunities.
Economic imbalances between the genders evident
The increasing financial discrepancies between genders are a significant cause for concern. The World Economic Forum projected that achieving pay parity between women and men would take 257 years, marking a 55-year extension from the 2018 prediction of 202 years. This revelation of the expanding pay gap is alarming, emphasizing the pressing need to tackle this issue.
The previous UBS research indicates that a 10 per cent gender pay gap can result in a 40 per cent gender wealth gap, which increases to 85 per cent for a 20 per cent gender pay gap. In the Mena region, 55 per cent of women assessed their understanding of personal finance, including day-to-day budgeting, as moderate, while 28 per cent rated it as “high,” as indicated by the UBS report.
The survey revealed that merely 29 per cent of participants considered their proficiency in handling financial information to be high, with 53 per cent rating it as medium. The findings also showed that women’s proficiency in dealing with financial information is most pronounced in the UAE and least pronounced in Syria.
As per the UBS report, approximately 47.8 per cent of women in Mena assessed their familiarity with investment information as low, with 42 per cent rating it as medium, and 10 per cent considering it high. Moreover, seven out of ten women in the region rated their familiarity with investment instruments, such as stocks and bonds, as low, while a quarter rated it as medium, and only 4.5 per cent regarded it as high.
Early-age financial literacy is crucial
UBS emphasized the importance of early education and financial literacy, recognizing their pivotal role in ensuring the sustained success of women in business over the long term.
Providing girls with early education imparts the knowledge, skills, and confidence necessary for success in academics and future careers. This encompasses the cultivation of critical thinking, problem-solving, and communication skills, all of which are essential for navigating the business world.
Financial literacy empowers women by enabling them to comprehend personal finance, make well-informed financial decisions, and effectively manage their money. This understanding is vital for initiating and operating a business, handling investments, and attaining financial security. Stereotypes and societal norms may dissuade girls from pursuing careers in business. Early exposure to financial concepts and exposure to successful female role models can help dismantle these barriers and inspire girls to contemplate leadership roles in business.
The report adds, “Achieving sustainable impact requires changes in attitudes and approach as women work across industries and cultures. Unleashing this impact involves understanding the cultural needs, barriers, and prospects of both women with wealth that requires management and those seeking to create it.”
Financial capability and education essential for economic empowerment
The report identified economic resources (financial ability and wealth) and economic education (financial knowledge and confidence) as principal catalysts for fostering economic empowerment among women. This is a multifaceted issue with an intricate interplay between these factors. Let’s delve deeper:
For instance, having access to capital, income, and other resources opens up avenues for women to initiate businesses, invest in education and assets, and engage in the formal economy. Conversely, a scarcity of financial resources can markedly constrain their choices, curbing their capacity to take risks or make independent decisions.
Additionally, grasping financial concepts such as budgeting, saving, investing, and debt management equips women to make well-informed decisions regarding their finances. This empowers them to navigate the financial system adeptly, steer clear of predatory practices, and establish financial security.
Financial literacy nurtures confidence in handling money, negotiating salaries, and advocating for financial rights. It enables women to overcome feelings of fear or intimidation, encouraging active participation in financial decision-making.
UBS also emphasized the importance of incorporating gender considerations in investments, turning finance into a tool for advancing gender equality. “A gender lens can be applied by considering women-owned businesses, companies employing women across all tiers as well as companies offering products and services that benefit women,” the report added.
Eliminating the gender gap in economic participation has the potential to contribute trillions of dollars to the global economy. Investments tailored with a gender-smart approach can address specific needs, unlocking the full potential of women as consumers, entrepreneurs, and investors. By embracing a gender-lens approach to investment, countries and regions can play a role in fostering a more inclusive and sustainable financial system that brings benefits to everyone.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
More
Less
Published: 19 Feb 2024, 04:55 PM IST
First home buyer Jessica Ricci was just trying to save a little extra money through her superannuation in a federal government scheme intended to help people like her. But an error from tax authorities has left her paying more tax than the top income bracket on some super contributions – ironically having the exact opposite of the intended effect of the policy.
As a result, she’s lost out on an extra $2,250 in savings that was supposed to go to her house deposit. While the ATO pushed back over who was at fault for the mix-up, her case has highlighted an increasingly problematic blindspot when it comes taxpayers getting the short end of the stick when dealing with tax authorities.
“I’m definitely feeling a little bit helpless,” she told Yahoo Finance. “There’s not a clear path to rectify this.”
RELATED
Jess was tipping extra money into her superannuation as part of the First Home Super Saver Scheme which has been running for years and allows eligible first home buyers to take advantage of the tax benefits of their retirement savings and then pull those extra contributions out to use for a house deposit.
As part of the scheme, individuals need to apply to the ATO, which in turn requests the related money from the person’s super fund.
Over four years, Jess contributed the maximum $50,000 amount, ensuring not to exceed the $15,000 yearly cap. She did so with the expectation of claiming the benefit at the time of her house purchase, as per the rules of the scheme.
When she went to make the claim, much of the information was auto-populated by the ATO website. And after receiving her funds, and the amount being less than expected, she soon discovered that her first contribution was wrongly classified as a concessional contribution, meaning $2,250 was, in the words of an ATO official, “retained by the ATO as withholding tax”.
She has spent months going back and forth with tax officials trying to get the money she believes should be owed to her.
“They’ve all taken the same stance, which is; ‘Well, yeah, we made a mistake, but you didn’t catch it. You said that what we provided you was fine, so it’s your fault’.
“I think it’s crazy to put the onus or the burden on the average person. I think most people would rightfully assume that pre-filled data provided by the ATO would be accurate,” she said.
Most coverage of artificial intelligence in finance focuses on what these tools can do. Less attention is paid to how they perform under scrutiny, particularly in financial modeling, where small errors can carry real consequences.
After testing Anthropic’s Claude in real-world modeling scenarios, one conclusion stands out: Claude produces outputs that look credible at first glance but contain structural flaws that only an experienced professional would catch.
That gap between appearance and reliability is where risk begins.
Where AI Performs Well
Claude handled several foundational elements of financial modeling competently. It was able to:
-
Build basic revenue models
-
Generate standard financial statements
-
Apply consistent formatting, labels and units
The outputs appeared polished and professional. In some cases, they resembled models produced by junior analysts. That is what makes them risky.
The models looked right. The structure appeared logical. Formatting signaled credibility. For a time-constrained professional, those cues can create trust before a full audit is completed.
The Errors That Hide in Plain Sight
A closer review revealed issues that would likely go unnoticed without technical expertise:
-
Broken linkages between financial statements
-
Hardcoded values instead of centralized assumptions
-
Non-dynamic formulas and inconsistent logic across periods
-
Balance sheets that did not balance
-
Timing mismatches between beginning- and end-of-period values
-
Circular reference issues in areas like revolving credit
These are not edge cases. They point to a broader issue. The model may function, but it is not built on a reliable or auditable foundation.
Where Best Practices Break Down
Beyond individual errors, the models often failed to follow core financial modeling principles:
-
Assumptions were not clearly separated from calculations
-
Error checks were largely absent
-
KPIs lacked depth and industry-specific nuance
-
Formula design was inconsistent or inefficient
These gaps affect more than presentation. They determine whether a model can be trusted, adapted and audited under pressure.
The Real Risk Is Overconfidence
The key distinction is not between AI and human-built models. It is between models that are understood and those that are not. When a professional builds a model, every assumption and linkage is intentional. Even limitations are typically known. With AI-generated models, that understanding is outsourced.
This creates a different kind of risk:
-
The logic behind the model may not be fully clear
-
The structure may not align with internal standards
-
The review process may be less rigorous because the output appears complete
In practice, credibility is inferred from how the model looks, not how it was built.
Reviewing Is Not the Same as Building
There is also a practical workflow issue. Reviewing an AI-generated model is not equivalent to building one.
When reviewing:
-
You are interpreting logic you did not design
-
Errors can be harder to trace
-
Inconsistent structure increases audit time
In some cases, it is faster to build a clean model from scratch than to fix a flawed AI-generated one.
What This Means in Practice
Financial models support decisions involving significant capital. Even small issues can cascade:
-
Misstated cash flows can distort debt capacity
-
Timing errors can affect liquidity assumptions
-
Weak KPIs can lead to incomplete analysis
There is also a question of accountability. Regardless of how a model is created, responsibility for its output remains with the professional using it.
Where AI Fits Today
AI tools can still be useful in financial modeling. They can help:
-
Speed up repetitive components
-
Generate starting points for analysis
But they are not a substitute for professional judgment. Nor are they ready to operate without close oversight. For now, their role is best defined as assistive, not authoritative.
A More Practical View of AI in Finance
The conversation around AI in finance does not need more optimism or skepticism. It needs more precision. AI can produce outputs that are visually convincing and directionally correct. In financial modeling, that is not enough.
The real risk is not that AI makes mistakes. It is those mistakes that are easy to miss, especially when the output looks finished. For financial professionals, the takeaway is simple: treat AI-generated models as drafts, not decision-ready tools.
The Reserve Bank of Australia is facing an incredibly difficult call. The Board meets next week amid continued uncertainty over the war in Iran, and a week out from a Federal Budget expected to contain some big changes. Against that backdrop, it is expected to slug mortgage holders and businesses with a hike in the official cash rate.
But borrowers could – and should – be spared another blow, according to some prognosticators going against the grain. As house prices in major cities are rolling over, certain economic commentators think the RBA should stand pat.
A hike would be the third in a row, but the second since surging fuel prices took hold.
“Because that interest rate increase — or the equivalent — has already come through in higher petrol prices, I reckon they might hold the line,” said David Koch.
RELATED
The Economic Director at Compare the Market, and regular Yahoo Finance contributor, believes the bank could wait for at least some of the dust to settle and see what’s in the Federal Budget on May 12.
“They’ll be thinking about whether oil prices will stay high for longer, because if the Middle East crisis resolves itself, oil prices will drop significantly — and that would take a big chunk out of the inflation rate,” he said.
He also pointed to deteriorating conditions in the economy and historically glum consumer sentiment as factors that could reduce demand that caused inflation to tick back up this year in Australia’s productivity constrained economy.
“Consumer confidence has plunged and business confidence has fallen to almost record lows. Consumers cutting their spending is bad for the economy because small businesses start to suffer.
“And bosses not having confidence is bad for the economy too, because they won’t invest and they won’t hire people. So the Reserve Bank doesn’t want to crush consumers and businesses with another interest rate increase,” he said.
The ANZAC Day weekend brought another soft result in auction clearance rates in the country’s biggest housing markets (with Adelaide being a notable exception). In Sydney, auction clearance rates on Saturday were 49 per cent (compared to 63 per cent a year ago) and in Melbourne was 56 per cent (down from 61 per cent the same time last year), according to Domain.
Economist and former advisor to the Gillard government, Stephen Koukoulas, also believes the right move is not to hike, and says a softening housing market could play a part in a surprise decision to hold.
-
Delaware5 minutes agoOusted budget forecaster resigns from marijuana appeals role
-
Florida11 minutes agoInvasive Burmese pythons may have met their match – opossums
-
Georgia17 minutes agoHow to track your Georgia Department of Revenue tax rebate
-
Hawaii23 minutes agoHawaii County Surf Forecast for April 28, 2026 | Big Island Now
-
Idaho29 minutes agoOPINION: One of Idaho’s most dramatic primary face-offs is the Distric…
-
Illinois35 minutes agoPHOTOS: Severe weather leaves behind damage, rainbows in its wake across central Illinois
-
Indiana41 minutes agoSevere storm damages Greenwood Community High School auditorium
-
Iowa47 minutes agoIowa community college enrollment rebounds to pre-pandemic levels