As women increasingly enter the Middle East’s workforce, governments across the region are taking note of the economic gains tied to gender inclusion. A World Bank report finds that women’s employment can raise household income by up to 25%, strengthening both family livelihoods and broader economic stability.

The impact extends beyond the micro level. The IMF estimates that between 2000 and 2011, the MENA region could have added $1 trillion in cumulative output had female labor force participation risen enough to narrow the gender gap, highlighting the substantial growth potential tied to women’s employment.

In response to this disparity, many countries have begun introducing policies aimed at greater inclusion and empowerment. Leading these efforts is the United Arab Emirates, which the World Bank recognizes as a global model for human development. The acknowledgement reflects the UAE’s progress in building inclusive economic opportunities and advancing gender balance and sustainable growth.

SIGNIFICANT STEPS

Among the most significant changes are the UAE’s 2022 labor law reforms, which allow part-time, temporary, remote, and shared work arrangements, broadening employment pathways for women and young people. Enhanced parental leave provisions introduced in 2021 also aim to improve work-life balance and increase women’s participation in the workforce. 

The UAE has further expanded its labor mobility framework through adaptable visa options, including the Golden and Green Visas for skilled professionals, investors, and freelancers, alongside job-search and remote work visas.

Dilu Mathew, HR and Admin Manager at EDGE Group of Companies, recalls that when she began her career in 2016, labor laws and benefits for women were far more limited than today.

“Over the years, the reforms have been very progressive and clearly supportive of working women,” she said.

Mathew highlights enhanced maternity leave, which increased from 45 days to 60 days, with an additional 15 days at half pay. Women can also combine maternity leave with annual leave for greater flexibility. She also notes the introduction of five days of paid parental leave for both parents.

“New mothers are entitled to reduced working hours during the breastfeeding period, which is extremely helpful for balancing work and childcare,” she said.

Mathew added that strengthened anti-discrimination laws and equal-pay guarantees align with the UAE’s broader gender-balance agenda.

“Overall, compared to 2016, these reforms have made a noticeable difference in creating a more supportive, inclusive, and balanced working environment for women,” she said.

Shahd Bassem, Public Relations & HR Officer at Hassan Allam Holding, says the most meaningful progress lies in legal updates that reinforce fairness and empowerment.

“The commitment to equal pay and clear protections against discrimination has encouraged women to trust the system more. I also appreciate how flexible work models became more common, allowing women to handle both personal and professional responsibilities with more ease.”

“Altogether, these reforms create a more supportive environment for women to develop and advance in their careers.”

Similarly, Ahmad Ramadan, HR Manager at Simplify Process, points to reforms that introduce flexible work models, extended parental leave, and stronger anti-discrimination clauses that promote gender equality.

“Additionally, the emphasis on equal pay for equal work ensures that women receive fair compensation. These reforms create an inclusive environment, enabling women to participate fully in the workforce while addressing the challenges of work-life balance and career progression.”

IMPACT GENERATED

The country’s broader strategy to strengthen women’s leadership and youth engagement has driven major progress in female inclusion. Women now make up 66% of the public-sector workforce. Data from the Ministry of Human Resources and Emiratization shows a 20.9% increase in women’s participation in the private sector during 2024 and the first half of 2025, along with a 27.5% rise in the number of companies employing women.

The number of women in leadership roles also increased by 33.8%, particularly in legislative, managerial, and business leadership positions. Skilled women now represent 46% of the total female workforce.

Bassem says government reforms have made many women feel more secure  pursuing long-term careers. “Knowing the law protects maternity rights, equal pay, and fair treatment encourages women to take bigger steps like changing jobs, negotiating salaries, or aiming for leadership roles.”

She adds that introducing flexible work options also allows women to stay active in the workforce during major life changes. “All of this strengthens women’s financial independence and gives them more freedom to grow professionally without fearing instability.”

Similarly, Mathew notes that due to these reforms, women now have increased career stability and long-term growth opportunities. This has encouraged more women to remain in the workforce after childbirth and pursue higher-level positions.

“Financial independence has also improved as women now have stronger legal backing and protection against discrimination.”

The impact is not only felt by working women but also reflected in how the private sector is now adjusting its hiring practices and corporate culture to be more welcoming of women.

Mathew continues that many private organizations have become increasingly structured and compliant in their policies because the law is now very clear. 

“More companies are actively hiring women because they know the legal framework supports gender balance.HR departments are becoming more conscious about equal pay, anti-harassment policies, and diverse hiring.”

She noted that overall corporate culture is shifting toward inclusivity, offering women leadership opportunities and training programs.

Ramadan says organizations are now more attentive to gender equality in recruitment, promotions, and compensation, gradually shifting corporate culture toward inclusivity and diversity, encouraging leadership participation by women and fostering a more equitable workplace. 

“Companies that embrace these reforms are also seeing positive outcomes in employee engagement, retention, and overall performance,” he adds.

PwC’s 2024 Workforce Hopes and Fears Survey reinforces this point, finding that employees place a high premium on flexibility, fairness, and inclusivity and view them as key drivers of retention.

ROOM FOR IMPROVEMENT

Bassem notes that despite stronger protections in the law, practical gaps remain. “Some companies don’t apply flexible work policies consistently, and some women hesitate to request their legal entitlements because they fear it may affect their opportunities.” She explains that better training and accountability are needed to ensure women experience the labor law’s protections not only on paper but in everyday workplace practice.

Mathew also highlights implementation gaps within some organizations, including unequal pay, where women continue to earn less than men for the same role, and reluctance among certain employers to offer flexible work arrangements even though the law permits them.

Echoing Bassem, she points to limited awareness among employees about their rights, particularly in small and mid-sized companies. Mathew says stronger enforcement and random inspections are essential to ensure compliance, alongside awareness programs that help women clearly understand their entitlements. She adds that companies should be encouraged to adopt gender-balance initiatives that go beyond minimum legal requirements.

Ramadan identifies similar challenges and says improvements could include enhanced training for HR teams, awareness campaigns on legal rights, and regular audits to ensure adherence.

“Encouraging mentorship programs and initiatives that actively promote women in leadership can further bridge the gap between legal provisions and actual workplace experiences. Continuous monitoring and support will ensure these reforms achieve their intended impact.”