Broadening horizons: Middle Eastern push for women in alternatives

CAIA examines the opportunities and obstacles for women in the Middle East alternatives market

The Middle East and North Africa (MENA) region has experienced a significant push to improve female representation in the finance industry, with young women as the primary target. The main obstacle is the ‘MENA paradox’, which refers to the discrepancy between high levels of female education and low employment rates. This is being reduced thanks to various programs to integrate women into the economic transformation of the region.

Within the region
Among the nations in the Gulf Cooperation Council, Saudi Arabia’s Vision 2030 Program sets out to increase female labor-force participation to 30% by 2030. A study conducted by the International Labor Organization found that Saudi Arabia has the third-highest percentage of women holding business leadership positions globally. Between 2018 and 2020, female representation in the job market increased by 64%, reflecting the growing understanding that women must be part of the workforce to drive development. 

Alternatives: women in the Middle East
When it comes to alternative investments in the region, women have been historically under-represented in all asset classes, except venture capital. A significant 34% of Middle Eastern start-ups have female founders − a larger proportion than in Silicon Valley. At a national level, there is room for improvement. 

Great progress can be seen at the investor level as well. Many sovereign wealth funds (SWFs) run a tight ESG agenda that goes beyond pure financial performance to recognizing the value-add diverse hiring practices bring to a firm. They are also making a significant impact by contributing to ESG goals such as decarbonization, the reduction of gender-gap imbalances, and the promotion of domestic growth within an improved governance model. SWFs are on par with most investors, as women account for 23.3% of the workforce globally, roughly three percentage points above the average in the alternatives industry. That percentage declines at upper tiers, with women accounting for only 17.7% at the senior level. The real challenge moving forward will be their retention and progression within the industry.

The Middle East is developing a robust ecosystem, fostering cooperation with industry bodies, associations, regulators, and academia to support the growth and development of professional women in the alternative investment space.

As we look to the future of alternative investments, education and professionalism are more important than ever before, and it is ultimately up to each one of us to create a more inclusive industry. 

About
Laura Merlini, CAIA, CIFD has served as the Managing Director EMEA for the CAIA Association since March 2012. She is an accomplished senior alternative investment professional with experience in strategic leadership, management skills, and alternative investment knowledge in market outreach, brand development, reputation, and member engagement. Since 2002, CAIA Association has sought to serve investors by educating industry stakeholders on current knowledge and best practices across the ever-changing landscape of alternative investments. Through credentialing of investment professionals, CAIA aims to raise the standards of the industry. As a member organization, it is joined by CAIA Charterholders in 100 countries on a mission to collectively foster a true investment profession.