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.
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Published: 19 Feb 2024, 04:55 PM IST
EL PASO, Texas (KTSM) — The City of Las Cruces’ finance director has received a national honor recognizing “exceptional contributions to public finance and local government service,” the City said.
Finance Director Lesley Doyle was selected by the Government Finance Officers Association (GFOA) to receive the organization’s “Recognition for Outstanding Public Service.”
The award recognizes Doyle’s leadership during a critical financial period for the City.
She stepped into the role of finance director as the City’s FY25 audit identified a projected beginning balance shortfall of more than $10 million in a community of nearly 120,000 residents, the City said.
Doyle led a coordinated effort to communicate the financial situation clearly to City departments, executive leadership, and the City Council, while working with the budget team to close the gap without reducing essential services.
Josie Trevino, assistant finance director, credited Doyle with building a culture of trust and collaboration between the Finance Department and other City departments from the beginning of her tenure.
Doyle came to municipal government after a career in public education, transitioning from a school district into City finance leadership.
“In her first year, she met the challenge with confidence, emphasizing open communication, transparency, and proactive problem-solving. Her leadership has helped strengthen relationships across the organization while fostering a positive and supportive workplace culture within the Finance Department,” the City of Las Cruces said.
“The balance of technical skill and genuine care for people is what makes Lesley’s leadership unique,” Trevino said.
The GFOA has published Doyle’s recognition on its website, and her story will also be highlighted during the upcoming GFOA newsletter and highlighted at the annual GFOA conference.
A former senior Treasury adviser to Gordon Brown has warned that HMRC is on the cusp of using artificial intelligence to track people’s and businesses income and expenditure without them knowing.
Dr Chris Wales, who was a member of Mr Brown’s Council of Economic Advisers for more than six years, has sounded the alarm while launching a chilling book on the conduct of the Spanish tax authority, Agencia Tributaria.
He is set to join former Labour Treasury minister Baroness Dawn Primarolo at an event next week flagging up how the Spanish model of dealing with tax evasion is about to arrive in the UK suggesting that the door is opening for a “surveillance state.”
In a preview of the future, Dr Wales has claimed that confidentiality in personal life – not just finances – “will simply go out of the window” and asks whether there are adequate safeguards in the UK to prevent HMRC from emulating its Spanish counterpart.
He said: “From 1 January, every single invoice will go through the tax agency in Spain. The Inspector can already obtain all your utility bills and will soon find out which clinic and pharmacy you use and what you buy there, which restaurants you eat at, where you purchase wine and groceries, what kind of car you have, how far you drive and where you park, what flights you take and which hotels you use. Information security? A thing of the past.”
He went on: “I am far from being a libertarian, but I see great danger in the direction in which tax authority powers are going, particularly because the process doesn’t seem to involve our active consent. There is little parliamentary debate about it. In Spain it is simply out of control. In the UK, let’s see.”
Highlighting the CONNECT AI program already used by HMRC in the UK, Dr Wales claimed that the UK is now close to following Spain’s lead.
He said: “HMRC has been using sophisticated information technology for years including an AI system called CONNECT which, as early as 2023, was said to contain more than 55 billion taxpayer-related data items.
“It will be much bigger today with these billions of pieces of information about taxpayers capable of being sorted quickly by AI.”
Dr Wales, who is now senior research adviser at International Centre for Tax and Development, added that HMRC also declines to say what algorithms it uses, under the pretext that if you publish them people will “game the system”, a claim that he suggests does not stand up to scrutiny.
“The system is understood to be used to target evasion. For tax authorities, everyone is a potential tax evader. This means that they believe they have a legitimate reason to collect data about all of us,” he said.
More than two weeks after a fire broke out inside the Lineage warehouse in Boyle Heights, many neighbors have received N95 masks and air purified while mobile health clinics are set up in their area.
But some neighbors said the massive fire that sent toxic fume into the air and created a horrendous stench of rotting food has cost them out of pocket.
Neighbors said they missed days of work while spending extra money on property cleanup. One woman said she spent hundreds of dollars on air purified before they became more widely distributed.
Lineage, the company that operates the burned warehouse, donated $2 million to the California Community Foundation (CCF) so the money can be distributed to the community. The organization said it’s split the money between different organizations.
At least 10 of them are listed as providing financial assistance.
The Boyle Heights Chamber of Commerce said it’s offering small business grants funded, in part, by the group, Inclusive Action for the City.
“We’re hoping that for brick and mortars: it would be up to $3,000. And then for our vendors, it would be up to $1,000,” Miriam Rodriguez with the Boyle Heights Chamber of Commerce said, adding the application is “very straightforward.” “It’s intentionally made that way so that there’s not a lot of requirements. We’re not asking for legal status. We’re not asking for pages of documentation.”
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