Dubai, United Arab Emirates, November 26, 2024 : Women-led entrepreneurs worldwide face an estimated funding gap of $1.7 trillion and the chasm will widen if governments, central banks and regulators do not adopt a policy to check discrimination against small women entrepreneurs, according to Wendy Teleki, Head of the Women Entrepreneurs Finance Initiative (We-Fi) Secretariat, which is housed in the World Bank and supports women entrepreneurs.

Moderating a session titled ‘WE Finance Code: A Systems Effort to Bridge the Gender Gap in Finance’ at the Global Women’s Forum Dubai 2024 (GWFD) in Dubai, she said there is definitely a big gap as banks are shying away from funding women entrepreneurs.

“It calls for action on the government side and banks and regulators. It is important that they make sure that there is no discrimination in the system, making it easier to provide loans without collaterals,” she told the panel comprising Asya Akhlaque, Manager of Investments, Climate Unit, The World Bank, and Hanta Rokotovao, Director for the Development of SMEs, BNI Madagascar Bank.

Launched in October 2023 by the World Bank, Women Entrepreneurs Finance Code (WE Finance Code) is a commitment by financial service providers (FSPs), regulators, development banks and other financial ecosystem players to work together to increase funding provided to women-led micro, small and medium enterprises (WMSMEs) around the world so that they can grow and add value to the economy and their communities.

“More than 400 million women entrepreneurs around the world have vast potential to grow their businesses, add value to the economy, and create jobs, but they lack the financing to achieve their goals. They represent a $1.7 trillion growth opportunity for financial service providers (FSPs) and $5-6 trillion in potential value addition to the global economy,” Teleki said.

“We find that women are less likely to ask for funding from banks and if they ask they are less likely to get funding. Women are less likely to aspire to scale and grow their businesses partially because they are not sure if they are able to get funding,” Teleki said and added, “We actually see the data that women are actually great customers, women tend to have smaller businesses so their transaction costs per business are higher because the loan volumes are so smaller, and women are less ambitious in terms of their growth.”

In Madagascar, 90% of businesses are in the SME sector and they work informally, which is a challenge for the banks. Women entrepreneurs in Madagascar need to have ownership of assets to have access to finance,” said Hanta Rokotovao.

The Global Women’s Forum Dubai (GWFD) provided a platform to explore new strategies for enhancing gender balance and raising women’s participation in the economy and society.

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About Dubai Women Establishment

Dubai Women Establishment (DWE) was formed as a statutory body of Dubai Government in 2006 under law no. (24) by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai. DWE aims to enhance the professional and leadership capabilities of women, increase their participation in the comprehensive development journey, and strengthen their role in shaping the economic and social future of Dubai, by proposing and developing relevant and impactful policies. DWE is headed by Her Highness Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, President of DWE and wife of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court. DWE’s strategic plan for 2023-2027 includes three pillars: creating an enabling environment for women in the labour market, developing women leaders, and enhancing the quality of life for women in society, through which DWE seeks to achieve its vision of “Dubai as a pioneering model for women-friendly cities.” The new strategic plan focuses on contributing to the strengthening of supporting legislation and policies, consolidating partnerships and allowing women to influence locally and globally.

About Global Women’s Forum Dubai 2024

The Global Women’s Forum Dubai (GWFD) provides a platform to explore new strategies for enhancing gender balance and raising women’s participation in the economy and society worldwide. Held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, GWFD reflects the UAE’s leadership in advancing gender equality and its commitment to the United Nations Sustainable Development Goals, particularly Goal 5: Gender Equality. Since its inception eight years ago, the forum has become a leading international gathering for fostering dialogue and collaboration to address challenges and opportunities for women worldwide. With a rich agenda featuring diverse discussions, transformative workshops, and impactful speakers, GWFD brings together thought leaders, policymakers, and innovators to inspire progress toward building a more inclusive and sustainable future. The 2024 edition of GWFD, themed The Power of Influence, takes place on November 26-27 at Madinat Jumeirah, Dubai, gathering over 6,000 participants, 250 speakers and 25 prominent figures and ministers from across the globe. The 130 panel discussions at the forum centre on three pillars: Future Economies and Societies, Collective Engagements and Actions, and Impactful Technologies and Innovations.