A new era of a woman: Establishing power in finance and real estate

Historically, women’s financial contributions were often overshadowed by societal norms that relegated their economic activities to the background.  However, the dawn of the 21st century marked a pivotal era of change. The advent of digital technology democratized access to financial information, tools, and markets, enabling more women to educate themselves, manage their finances, and engage in investing with newfound confidence and autonomy.

Did you know? A critical barrier to entry for many women is financial literacy. The Almenberg and Dreber study of 1,300 Swedish investors revealed that when financial literacy levels are equalized, women and men participate in investing at comparable rates. 

The rise of female investors: A global perspective

Globally, the narrative around women in investing is changing.  According to The National News, a 2021 Fidelity Women and Investing Study found that 67% of women are now investing outside of their retirement accounts, up from 44% in 2018. McKinsey projects forecasts that by the end of this decade, women are expected to control over $30 trillion in assets, a significant rise from $10 trillion, representing a substantial portion of U.S. household assets.

Behavioral differences in investing

Today, the rise of female investors is not just a quantitative shift but a qualitative one. Women are increasingly recognized for their strategic investment choices, favoring long-term planning, diversification, and risk management over speculative bets. An analysis of over five million Fidelity accounts over the past decade suggests that women tend to achieve better investment performance than men once they decide to invest. The following data by The Motley Fool cements the narrative as women investors have consistently outperformed their male counterparts, achieving higher returns with a difference ranging from 0.4% to nearly 1% more.

The importance of involvement and long-term perspective

Encouraging women to take an active role in investment decisions from an early age is seen as crucial for engagement and empowerment, preparing them for future financial independence. Additionally, Fidelity’s 2021 Women and Investing Study illuminated the rising trend of investment among younger generations, with 71% of Generation Z women and 63% of millennials participating in the stock market. Research by The Motley Fool highlights this shift, with approximately 60% of women now engaging in stock market investments, and a notable 68% diligently saving for retirement. 

The GCC’s paradigm shift

As we celebrate International Women’s Day on March 8th, it’s imperative to spotlight the transformative strides women have made in the realm of investing, particularly within the expanding real estate markets of the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA). 

UAE: A hub of female financial empowerment

In the UAE, the real estate sector has witnessed an unprecedented influx of female investors, with Emirati, South Asian, and Far Eastern women leading the charge. While exact age breakdowns were not available, research indicated that millennials are the dominant demographic among women investing in the UAE’s real estate market.

In alignment with Dubai’s D33 Economic Agenda’s emphasis on women’s empowerment, the booming real estate sector has seen a surge in female investors. Women are increasingly focused on diversifying their financial portfolios, with real estate now representing 40% of their investment activities in the UAE. 

Nevertheless, the number of women investors in the UAE’s real estate market rose from 26,698 in 2022 to 38,059 in 2023, marking a 42.5% increase. In 2023 women collectively invested approximately $25 billion (AED 90.5 billion) into the market, indicating a substantial 53.9% jump from the previous year. 

Did you know? Women are projected to contribute about 22% of the total real estate investments in Dubai in the first quarter of 2024, estimated at $3.27 billion (AED 12 billion)

These increases in female financial participation can be attributed to the nation’s commitment to fostering environments like CityscapeWIRE, which enhance financial literacy, improve access to capital, and provide better leadership opportunities in the MENA real estate domain.

Saudi Arabia’s visionary path

Saudi Arabia, under its Vision 2030 blueprint, has made remarkable progress in integrating women into the economic fabric of the nation. Initiatives such as the Saudi Arabia Real Estate Development Fund (REDF), which has aided approximately 73,000 Saudi women in becoming first-time homeowners, emphasize the Kingdom’s commitment to women’s empowerment. Esteemed figures like Sarah AlSuhaimi, the first Saudi woman to chair the Saudi Tadawul Group, exemplify the potential of female leadership in reshaping the investment landscape.

Ending Note: The growing economic empowerment of women globally is catalyzing a broader societal appreciation, encouraging a more inclusive and balanced perspective on wealth creation. This improvement, while impressive, is merely the beginning of a long journey toward true gender parity in the finance and investment industries.