Achieving economic equity and gender parity is a vital element in the development of nations globally. The inclusion of women in the workforce and ensuring their progression into leadership positions are not merely moral or political concerns, but they also carry significant economic implications.
In examining societies that have successfully embraced gender inclusion, substantial economic advantages become apparent. A study by Catalyst, an organization committed to promoting gender equality within businesses, revealed that companies with a higher proportion of women in leadership roles achieve a shareholder return 35% greater than those with lower female participation in leadership roles. This indicates that women bring valuable and distinctive skills to management, resulting in increased profitability and success for companies.
Additionally, the economic advantages of fostering gender equality go beyond the corporate sphere. Research by the Foreign Policy Analytics indicated that companies with a higher ratio of women in executive management roles were, on average, 47% more profitable than those with lower gender representation. This underscores the positive influence that integrating women into the workforce can have on a company’s output and bottom line.
In addition to the economic growth observed within companies, the McKinsey Global Institute found that advancing women’s equality could potentially add $12 trillion to global growth by 2025. Closing the gender gaps in leadership and salaries can significantly contribute to the growth and development of a country’s GDP.
Nevertheless, the current rate of women’s integration into the labour market in Arab countries is relatively low, standing at only 19%, compared to the global rate of 47%. Cultural, legislative, and political factors play a significant role in inhibiting women’s participation in the economy. Issues such as wage inequality, lack of promotion opportunities, and the reservation of technical jobs for men all contribute to this economic disparity.
To tackle this, proactive policies are essential. Improving the attractiveness of the private sector through wage equality, investing in women’s working conditions, and enacting legislation to reduce gaps between men and women at all levels are crucial steps to enhancing gender integration in the labour markets.
Harnessing the potential of women in the workforce can only serve to benefit Arab economies in the long run. With the right policies and proactive measures in place, the integration of women could contribute to an additional two to three points of economic growth in Arab countries. It is time to break free from the constraints that prevent women from contributing to the prosperity and growth of Arab economies, thereby shielding the region against chronic underdevelopment.