Arab region struggles to unlock women’s financial potential

A new United Nations report has highlighted persistent barriers preventing women in Morocco and across the Arab region from fully participating in the financial system, warning that limited access to banking and digital services continues to restrain economic growth.

In its study titled Unlocking women’s economic potential in the Arab region: advancing financial inclusion and autonomy, the United Nations Economic and Social Commission for Western Asia said that despite isolated progress, financial exclusion among women remains widespread. In Morocco, as in many neighboring countries, disparities in access to bank accounts, credit and digital tools are undermining women’s economic independence and limiting broader development prospects.

Female labor force participation in the Arab region hovers around 20 percent, the lowest rate globally. The report attributes this to a combination of factors, including a shortage of formal employment opportunities, the heavy burden of unpaid domestic work, entrenched social norms and legal constraints. With limited options in the formal economy, many women turn to small income-generating activities or self-employment.

Without equitable access to savings accounts, credit, insurance and digital financial services, such ventures often remain fragile. According to the report, 57 percent of men in the region hold an account at a financial institution, compared with 42 percent of women, a gap of 15 percentage points. In parts of North Africa and the Middle East, the disparity is even wider.

Morocco reflects this pattern. Around 55 percent of men have a bank account, compared with 35 percent of women, creating a 20 point gap. The figures underscore the scale of the challenge facing policymakers seeking to expand financial inclusion.

Legal frameworks and social norms remain a primary obstacle. In several countries, rules governing inheritance, mobility and family status can restrict women’s ability to accumulate assets or provide collateral for loans. While women are legally entitled to inherit property in many jurisdictions, social or family pressures often lead them to forgo their share.

Limited ownership of land and real estate reduces women’s capacity to secure credit or invest in productive activities. Cultural expectations also continue to constrain participation in the labor market, particularly as caregiving responsibilities fall largely on women.

Some countries have introduced reforms. Saudi Arabia has eased certain guardianship rules, and the United Arab Emirates has amended laws to strengthen equal access to credit and property rights. Yet progress remains uneven across the region.

Traditional banking models pose another hurdle. Financial institutions rarely design products tailored to women’s needs, the report found. High collateral requirements, branch locations distant from rural communities and operating hours that conflict with family responsibilities all contribute to lower usage rates.

Persistent bias in lending decisions is also cited, with women sometimes viewed as higher risk borrowers despite evidence suggesting otherwise. The absence of gender-disaggregated financial data further complicates efforts to design effective public policy.

Several countries in the region, including Morocco, Tunisia, Jordan and Palestine, record gender gaps of more than 20 percentage points in account ownership. This exclusion limits women’s ability to save, invest and cushion themselves against economic shocks.

Morocco has taken steps to modernize its financial sector, notably by allowing telecommunications operators to offer financial services. This move has encouraged the expansion of mobile payments and electronic wallets, boosting the country’s fintech ecosystem.

However, digital progress has not translated into equal uptake among women. Across the region, women are less likely than men to use the internet, conduct digital payments or hold debit cards. The digital divide is compounded by limited technical skills, concerns over online security, high access costs and patchy infrastructure in some areas.

The commission argues that strengthening financial and digital literacy among women should be a priority, alongside improving access to credit for very small and medium enterprises led by women.

Digital exclusion has emerged as a critical battleground. Women’s lower connectivity rates effectively block access to emerging financial channels. International experience suggests that targeted investments in digital infrastructure, combined with community-based training programs, can produce rapid gains, particularly in rural areas.

The report frames financial inclusion as both a social equity issue and an economic imperative. Simulations indicate that even modest improvements in women’s access to financial services could deliver measurable development gains.

The commission is urging governments, financial institutions and civil society groups to adopt comprehensive strategies, including legal reforms, gender-responsive financial products, systematic collection of sex-disaggregated data and expanded financial and digital education programs.

In Morocco and across the Arab region, the foundations for progress are in place. The challenge now lies in translating policy initiatives into tangible improvements that enable women to participate fully in the economy and contribute to sustainable growth.