Succession Series - “The flower that blooms in adversity is the most rare and beautiful of all"

“The flower that blooms in adversity is the most rare and beautiful of all."

By Dominique Burnett & Chris Mourant, Fairway

In the Disney film, Mulan, the female lead doesn’t settle for the status quo of staying at home whilst the men go to war. The quote above comes during a particularly poignant moment, in which Mulan first comprehends the gravity and complexity of trying to change the nation’s perception of herself – a feeling many of us have likely experienced at some stage in our personal lives or professional careers.

Why are we writing about Mulan? Because it isn’t just a storyline in a film, we have seen and continue to see this theme of ‘women’s role in society’, play out in reality. As views on inclusivity and diversity have developed world over, and societal norms continue to move forward, we are seeing many new opportunities emerging for female leaders - and in particular for female leaders in the Middle East, a region not traditionally associated with female empowerment.

Women and wealth

Following the UAE’s ‘Year of the 50^th’ celebrations, which ended in 2022 (celebrations organised to commemorate 50 years since the formation of the UAE), a strategy for the next 50 years of the UAE’s development was launched. Interestingly we took note that diversity and innovation had become vital components of the country’s strategic focus, with female investors in particular emerging as a strong influence both in the region (and globally). Indeed, according to the World Economic Forum, the combined earnings of Muslim women would make them, collectively, the world’s 16^th richest country, with total earnings at just under $1trillion.

At a very basic level, women make up half of the world’s population and are guardians of a third of the world’s wealth, adding $5trillion a year to the global wealth pool. This wealth creation is expected to grow at a compound annual growth rate of 7.2% between 2019 and 2023 which outperforms the projected overall market growth of 5.8%. Women’s wealth in the Middle East is expected to rise to a growth rate of 9% during the same period. So it’s no surprise that the subject of women in wealth continues to be a hot topic in the region.*

The influence of women in the Middle East

The influence of women in the region should not be undervalued; many women in the region are highly educated.  However, it is the visibility (or lack of visibility) of women in key strategic positions within family businesses that contributes to the perception that women have limited opportunities in terms of roles within these structures and enterprises. Historically, wealth in the Middle East was seen as family wealth rather than wealth that is split out individually. You have to look no further than the Forbes Top 100 Arab Family Businesses list to show how generalised wealth is reported in the region. It is therefore important to regard family wealth as a combination of separate ventures that are often overseen by a patriarch, or increasingly but not common, a matriarch. We must also distinguish between regions that make up the Middle East, each of which have distinct cultures and sensitivities which ultimately determine the role of women - and there is still a significant difference country to country.

The private wealth of women in the Middle East

Given that women are becoming increasingly accepted and empowered to hold senior positions in commerce and investing in the region, is there an untapped market focusing primarily on the private wealth of women in the Middle East? At this time, cultural and religious traditions can restrict the access women have to professional advisers because it is an industry in which males tend to hold the most senior positions. This issue is amplified by the fact that even in Western society, there is still a feeling that females do not have the same opportunities as males, which in turn means there are fewer women in senior professional advisory positions - which in turn means there is a dearth of female advisers that can professionally advise women from the region. For those female advisors operating in the region, it has historically been difficult for them to access the matriarchs and vice versa, for the matriarchs to access the advisors. This adversity has not deterred some of the leading female figures across the Middle East. Nevertheless, this is becoming less prominent since the establishment of world class finance centres – the Dubai International Finance Centre and the Abu Dhabi Global Market. Indeed, Jersey Finance has contributed to such awareness by hosting a Women in Leadership series in key jurisdictions across the GCC.

Women’s rights

In recent times, the liberalisation of women’s rights has contributed positively to the perception of women in wealth. For example, the sweeping legislative changes adopted in the Kingdom of Saudi Arabia saw women granted the right to drive, to travel without male guardian permission and attend sporting events, amongst others. 

The subject of women’s rights has evolved over time and comes under particular scrutiny. If we look at how the Middle East developed to the region we know today - historically the male family members were charged with providing for the family – and it wasn't too long ago that this view was globally accepted. However, as wealth has passed through generations and with more Middle Eastern families choosing to educate their children in the West, this view has been diluted. Patriarchs are now far more welcoming towards female heirs’ involvement with the family business, especially when they are able to demonstrate that they can add value.

Women in the media

The media continues to fuel the women in wealth debate by highlighting some of the key differences between common law jurisdictions in the West and civil law jurisdictions in the Middle East and their cultural counterparts. With the evolution of new business practices and the implementation of legislative changes in the region, fiduciary service providers are now able to assist with structuring family wealth so that there is a clear ownership structure in place that meets the objectives of the patriarch and wider family. It is also possible for assets to be structured in trusts, companies, foundations and other vehicles that endure in perpetuity. This will mean that moving forward, family wealth will not be owned and controlled by a patriarch, but by a number of family members alongside professional advisers, that can all contribute to the effective running of assets and ultimately maximise family wealth.

The future

In recent years we have witnessed a real shift in the Middle East’s alignment to Western ideals which can only be seen as a positive move towards providing women with equal opportunities. While doing so, the Middle Eastern jurisdictions have ensured that any initiatives have also kept in line with the region’s cultural roots, so as to not completely demean the rich history of the Arab nations. Women in the Middle East are now contributing and shaping the economy and, with the ever-growing influence of social media, the profile of women in business across the GCC is far reaching and will certainly inspire the next generation. Adversity has not stunted progress, it has shaped a motivated region that is increasingly driven by women.

*Source: Boston Consultancy Group

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