Women’s Economic Empowerment in MENA – Lessons from OECD Best Practices

The Gender Gap in MENA Economies

Women’s economic participation is a critical driver of sustainable development, yet in the Middle East and North Africa (MENA) region, women’s labor force participation remains the lowest in the world, standing at just 20% compared to the global average of 47% (World Bank, 2022). Despite significant strides in education, with female literacy rates and university enrollment rising across the region, this progress has not translated into proportional economic empowerment. Structural barriers—including restrictive legal frameworks, financial exclusion, and deep-rooted cultural norms—continue to impede women’s ability to fully participate in the economy (OECD, 2021).

The economic cost of this exclusion is staggering. Studies estimate that closing the gender gap in the labor market could add as much as $575 billion to the region’s economy annually (McKinsey Global Institute, 2019). Countries that have actively pursued gender-inclusive economic policies, such as Saudi Arabia’s Vision 2030 and Tunisia’s labor market reforms, have begun to see positive shifts. However, progress remains uneven, and systemic challenges persist, particularly in informal employment, access to finance, and workplace rights (ILO, 2023).

Across OECD countries, successful policies—such as Germany’s dual apprenticeship system, France’s parental leave and flexible work policies, and the Nordic gender-inclusive economic models—have led to significant advancements in women’s workforce participation. These models emphasize structural reforms, legal protections, and financial inclusion, offering valuable lessons for MENA economies seeking to bridge the gender gap.

 

This article explores the applicability of OECD best practices to MENA’s economic landscape, identifying the key challenges and proposing evidence-based policy recommendations. By adopting scalable and context-specific solutions, MENA policymakers and international organizations can accelerate women’s economic empowerment, ultimately fostering inclusive growth and resilience in the region.

OECD’s Role in Women’s Economic Empowerment: Best Practices and Case Studies

The OECD has long been at the forefront of gender-inclusive economic policies, promoting strategies that empower women in the workforce. Across its member states, three key approaches have been particularly successful: labor market reforms, financial inclusion policies, and social protection measures. These strategies provide valuable lessons for MENA economies, offering insights into how legal and structural barriers to women’s economic participation can be addressed.

1. Labor Market Reforms: Expanding Women’s Access to Employment

Several OECD countries have reformed their labor markets to enhance female workforce participation, ensuring equal opportunities and reducing structural barriers.

  • Germany’s Dual Apprenticeship System: Germany has successfully integrated women into the labor force through its vocational training programs. This system, which combines formal education with hands-on work experience, has been instrumental in helping women access skilled professions, particularly in STEM and technical fields (OECD, 2019). Such an approach could be adapted in MENA countries to address the education-to-employment gap, ensuring that women not only graduate with degrees but also acquire skills aligned with labor market needs.
  • Nordic Countries’ Work-Life Balance Policies: Scandinavian nations have implemented generous parental leave schemes, flexible work policies, and state-supported childcare, significantly boosting female labor force participation (ILO, 2021). For instance, Sweden provides 480 days of paid parental leave, with incentives for fathers to take a share, promoting a more balanced distribution of unpaid domestic labor. While MENA countries may face cultural resistance to such reforms, incremental adaptations—such as flexible working arrangements and employer-supported childcare—could facilitate higher participation rates.
  • France’s Gender Pay Gap Legislation: France has enacted stringent laws requiring companies to publish gender pay gap reports and face penalties for non-compliance (OECD, 2023). While wage disparities remain a major issue in MENA, introducing legal frameworks for salary transparency could be an essential first step in addressing discriminatory pay practices.

2. Financial Inclusion: Bridging the Gender Credit Gap

Access to financial services is a major determinant of women’s economic empowerment, yet women in MENA remain disproportionately excluded from formal financial institutions. According to the World Bank (2021), only 38% of women in MENA have a bank account, compared to 72% in OECD countries.

  • Canada’s Women Entrepreneurship Strategy: Canada has launched a $6 billion initiative to support women entrepreneurs through grants, low-interest loans, and mentorship programs (Government of Canada, 2022). A similar model could be implemented in MENA, where female-owned businesses struggle to access credit due to lack of collateral and restrictive lending practices.
  • United Kingdom’s Financial Literacy Programs: The UK has introduced targeted financial literacy programs for women, ensuring they acquire the skills needed to manage personal and business finances effectively (OECD, 2020). Expanding financial education initiatives in MENA could empower women to navigate the banking sector, apply for loans, and manage investments.

3. Social Protection and Legal Reforms: Creating an Inclusive Economy

  • Spain’s Anti-Discrimination Labor Laws: Spain has strengthened its legal framework to combat workplace discrimination, ensuring women have equal access to leadership positions (European Commission, 2022). Similar policies in MENA—such as anti-harassment laws and quotas for female representation in corporate leadership—could encourage more women to enter and remain in the workforce.
  • Turkey’s Public-Private Partnerships for Women’s Employment: Turkey has implemented collaborative initiatives between the government and private sector to create employment opportunities for women in non-traditional industries (OECD, 2021). This model could be particularly effective in MENA economies where female employment is concentrated in education and healthcare, limiting broader participation.

By analyzing these OECD best practices, MENA policymakers can identify scalable solutions that fit the region’s economic and cultural context. However, adapting these strategies comes with challenges, which will be explored in the next section.

Challenges in Adapting OECD Best Practices to MENA Context

While OECD models offer valuable insights, applying them to MENA economies requires careful consideration of structural, cultural, and institutional barriers that could hinder implementation. This section explores key challenges in adapting OECD best practices to the MENA region and proposes localized strategies for overcoming them.

1. Legal and Institutional Barriers to Women’s Workforce Participation

One of the primary challenges in MENA is the incomplete implementation of gender-equality laws. While many countries have made progress in recent years, enforcement remains weak.

  • Lack of Legal Protections: In several MENA countries, women still require a male guardian’s permission to work, travel, or start a business, restricting their economic autonomy (World Bank, 2021). Even in countries where these laws have been relaxed, cultural resistance continues to limit women’s access to employment.
  • Workplace Discrimination and Harassment: Unlike OECD nations that have implemented strict anti-discrimination laws (e.g., Spain’s gender parity policies), workplace protections in MENA remain insufficient. Surveys indicate that harassment, wage discrimination, and hiring biases discourage women from entering or remaining in the workforce (ILO, 2022).

Potential Solutions:

  • Strengthening legal enforcement mechanisms for gender-equality policies.
  • Introducing workplace anti-harassment policies with clear reporting mechanisms.
  • Establishing women’s business advocacy groups to push for labor law reforms.

2. Economic Barriers: Limited Financial Inclusion for Women

Access to finance remains a critical hurdle for female entrepreneurs in MENA, with only 10% of women-owned businesses securing bank loans, compared to 35% globally (World Bank, 2022).

  • Cultural Attitudes Toward Women’s Borrowing: In many MENA economies, banks perceive women as high-risk borrowers due to low financial literacy and limited collateral (OECD, 2023).
  • Male-Dominated Business Networks: Unlike OECD countries that actively support women’s entrepreneurship (e.g., Canada’s Women Entrepreneurship Strategy), MENA lacks formal structures for female-led business mentorship and funding.

Potential Solutions:

  • Microfinance models tailored for women, following Bangladesh’s Grameen Bank approach.
  • Government-backed credit guarantee schemes to reduce lenders’ risk.
  • Expansion of financial literacy programs targeting female entrepreneurs.

3. Cultural and Social Barriers to Women’s Economic Participation

Deep-rooted social norms often discourage women from working, particularly in conservative societies. Family expectations, lack of affordable childcare, and limited safe transportation options are key barriers.

  • Social Resistance to Women in Leadership: In contrast to Nordic countries that have successfully introduced mandatory gender quotas in corporate boards, women in MENA struggle to reach senior positions due to patriarchal business environments.
  • Unpaid Care Work Burden: MENA women spend five times more hours on unpaid domestic labor than men, making full-time employment difficult (UNDP, 2022).

Potential Solutions:

  • Government and private sector investment in affordable childcare.
  • Flexible work arrangements (e.g., part-time work, remote jobs) to accommodate family responsibilities.
  • Public awareness campaigns challenging gender stereotypes in employment.

Adapting OECD models requires context-specific adjustments that account for MENA’s socioeconomic, legal, and cultural realities. The next section will explore policy recommendations tailored to overcoming these barriers while leveraging the most effective elements of OECD best practices.

4. Policy Recommendations for Adapting OECD Models to MENA Economies

To successfully leverage OECD best practices for women’s economic empowerment in MENA, policymakers and development actors must adopt context-sensitive reforms. This section outlines concrete recommendations that align with the region’s socioeconomic, legal, and cultural realities while drawing inspiration from successful OECD strategies.

1. Strengthening Legal and Institutional Protections for Women

  • Enhancing labor laws: Governments should align labor legislation with OECD standards by enforcing gender-equal employment policies, criminalizing workplace harassment, and implementing anti-discrimination laws.
  • Gender-sensitive tax policies: OECD research suggests that tax incentives encouraging female labor force participation (e.g., tax credits for working mothers) can improve economic outcomes. MENA countries could implement similar measures.
  • Quotas for women in leadership: Countries such as Norway and France have successfully increased women’s representation in executive positions through corporate board quotas—a model that could be adapted to MENA’s public and private sectors.

2. Enhancing Financial Inclusion for Women Entrepreneurs

  • Expanding microfinance initiatives: Leveraging successful models from OECD’s Development Assistance Committee (DAC), MENA governments can promote low-interest loans for women-led SMEs and establish dedicated women’s business funds.
  • Alternative credit scoring models: Instead of relying solely on collateral, banks in MENA could use digital transaction histories and peer lending systems to assess women-owned businesses, following fintech innovations seen in OECD countries.
  • Public-private partnerships (PPPs) for business mentorship: Encouraging multinational corporations and banks to establish women-focused incubators can improve access to funding, networking, and business training.

3. Social and Workplace Reforms to Support Women’s Employment

  • Expanding childcare services: OECD research indicates that affordable, quality childcare is a major determinant of female workforce participation. Governments should subsidize daycare centers and promote corporate childcare programs.
  • Flexible work policies: The adoption of remote work, paid parental leave, and part-time options can boost women’s participation in sectors historically dominated by men.
  • Transport and workplace safety: Investments in women-friendly public transport and workplace security can enhance economic inclusion, particularly in conservative communities.

5. Future Outlook: Achieving Inclusive Growth for Women in MENA

Adopting OECD-inspired, locally adapted policies can accelerate women’s economic participation in MENA, unlocking untapped potential for GDP growth, innovation, and social development. However, the success of these policies depends on:

  • Strong political will and regional cooperation to implement and sustain reforms.
  • Public-private collaboration to fund and scale women’s empowerment initiatives.
  • Continued advocacy and awareness campaigns to shift societal attitudes toward gender roles in the workplace.

If MENA economies commit to gender-inclusive policies, they could add up to $2.7 trillion to the region’s GDP by 2025 (McKinsey Global Institute, 2021). The road to reform is challenging, but the economic and social benefits make it a necessary and transformative endeavor.

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