Contacts:
In Washington : Dina El Naggar (202) 473-3245
Delnaggar@worldbank.org Washington, DC, October 19, 2007 – According to a new World Bank Report the business environment and business laws in the Middle East and North Africa Region are far less discriminatory than presumed. But, social attitudes and laws outside the business legislation heighten the barriers for women entrepreneurs and limit their opportunities. "Female-owned businesses are as well established and as sophisticated as their male counterpart," said Daniela Gressani, World Bank Vice President for the Middle East and North Africa Region . "It is clear that women entrepreneurs play a far more important role in the region’s economies than previously thought, but there are still too few of them." The report, titled The Environment for Women’s Entrepreneurship in the Middle East and North Africa Regionfinds that overall economic openness and reform of the business environment will reduce barriers and create opportunities for all investors, particularly women. The report concludes that while women entrepreneurs can still face more hurdles than their male counterparts, the business and legal environment is far less discriminatory than was assumed. The report is based on a survey of over 5,100 male and female-owned firms in eight MENA countries. Male and female-owned firms perform similar on the basis of sales and value added per worker. In recent years, female-owned firms have increased their work force faster in Egypt, Jordan, Saudi Arabia, and West Bank and Gaza than male-owned firms. “Women still do not have equal access to economic opportunity,” said Mustapha K. Nabli, World Bank Chief Economist for the MENA region. “Just the same way as women still face more barriers inside and outside the labor market despite educational gains, women face additional barriers in the business environment despite their capabilities and business acumen.” The report finds that social attitudes that discourage women’s employment can act as barriers, and that certain laws – such as those requiring a husband’s permission to travel - can interfere with both a woman’s opportunities and the implementation of business legislation. Interestingly, access to finance was not identified by the report as a gender-specific barrier, as it is high for both men and women. “A large number of women have financial resources and increasingly also educational skills,” said Nadereh Chamlou, Senior Advisor in MNA, and the lead author of the report. “With an easier investment climate, they are more likely to start a business in the formal sector. This can help increase competition and diversify the region’s economies.” By analyzing male and female-owned firms, it is possible to distinguish between barriers that are common to all company owners and those that are gender related. The eight countries studied are: Egypt, Jordan, Lebanon , Morocco, Saudi Arabia, Syria, West Bank & Gaza, and Yemen. Women are the principal owners of 13% of the firms surveyed. Female-owned businesses are often as well established and operate in as many sectors as male-owned businesses. More than 30% of female-owned firms are large, employing more than 250 workers. Nearly half of the firms surveyed are privately owned. In Syria and Morocco, where data is available, more than 65% of female owned firms are managed by the owner, debunking the myth that they are owners by name only. Female-owned firms are as likely to be exporters and attract foreign direct investors as male-owned firms. A larger share of their work force is skilled, and they hire more professional female workers. ###
For more information on the World Bank’s work in the MENA region, please visit
www.worldbank.org/mena
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