Limited funding in women-led climate ventures is driven by market biases, but increasing support for women in STEM is fostering positive change

 

Dubai, United Arab Emirates, November 26, 2024: Women entrepreneurs in the climate sector are uniquely positioned to drive transformative solutions, yet they continue to face significant barriers in securing investment. While there is growing recognition of the need for innovative climate solutions, market dynamics and investor biases still hinder funding opportunities for many female-led ventures. Despite this, there is a shift toward greater support for women in STEM fields, offering hope for future change.

The panel discussion held at the Global Women’s Forum in Dubai on Tuesday, moderated by Sammar Essmat, Senior Operations Officer for Gender and Economic Inclusion at the IFC, emphasized a solutions-focused approach to climate change. She urged the audience to view the issue through a 360-degree lens, focusing on the positive impact of entrepreneurship in addressing climate challenges.

Alina Truhina, CEO and Managing Partner of The Radical Fund, spoke about the investment landscape and highlighted how women entrepreneurs are often more equipped to drive change in sectors like commerce, logistics, and climate tech. She shared an example of how The Radical Fund is supporting a female-founded biotechnology company that is disrupting 
the palm oil industry with innovative practices.
However, despite these positive examples, the broader challenge remains. Basima Abdulrahman, Founder and CEO of KESK, expressed the difficulty of attracting investment for climate-focused startups. She noted that investors continue to favor sectors like technology and communications, even though these markets are saturated. While there is an intent to support climate tech, the appetite for such investments remains low, partly due to the high risks and costs involved. Basima’s remarks underscored the financial barriers that persist for many female founders in the sector.

Adding to this, Mehmet Can Atacik, Senior Private Sector Development Consultant, The World Bank and Impact Investor and Advisor, Alethina Impact, noted that the investment landscape would likely be different if the entrepreneurs were male or from a developed country. He emphasised how scalability and exit strategies often drive investment decisions, factors that tend to disadvantage women entrepreneurs. However, he pointed to a positive trend in the west, where women now outnumber men in STEM fields, and where investors and policymakers are increasingly recognising the value of female-led businesses.

Encouragingly, initiatives like Renew MENA, hosted by the World Bank, are working to bridge this gap by promoting investment in women-led SMEs, he said. These efforts are part of a larger push to foster gender inclusion and ensure that female entrepreneurs have the resources and support needed to thrive.

 

-ENDS-
 

About Dubai Women Establishment

Dubai Women Establishment (DWE) was formed as a statutory body of Dubai Government in 2006 under law no. (24) by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai. DWE aims to enhance the professional and leadership capabilities of women, increase their participation in the comprehensive development journey, and strengthen their role in shaping the economic and social future of Dubai, by proposing and developing relevant and impactful policies. DWE is headed by Her Highness Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, President of DWE and wife of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court. DWE’s strategic plan for 2023-2027 includes three pillars: creating an enabling environment for women in the labour market, developing women leaders, and enhancing the quality of life for women in society, through which DWE seeks to achieve its vision of “Dubai as a pioneering model for women-friendly cities.” The new strategic plan focuses on contributing to the strengthening of supporting legislation and policies, consolidating partnerships and allowing women to influence locally and globally. 

About Global Women’s Forum Dubai 2024

The Global Women’s Forum Dubai (GWFD) provides a platform to explore new strategies for enhancing gender balance and raising women’s participation in the economy and society worldwide. Held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, GWFD reflects the UAE’s leadership in advancing gender equality and its commitment to the United Nations Sustainable Development Goals, particularly Goal 5: Gender Equality. Since its inception eight years ago, the forum has become a leading international gathering for fostering dialogue and collaboration to address challenges and opportunities for women worldwide. With a rich agenda featuring diverse discussions, transformative workshops, and impactful speakers, GWFD brings together thought leaders, policymakers, and innovators to inspire progress toward building a more inclusive and sustainable future. The 2024 edition of GWFD, themed The Power of Influence, takes place on November 26-27 at Madinat Jumeirah, Dubai, gathering over 6,000 participants, 250 speakers and 25 prominent figures and ministers from across the globe. The 130 panel discussions at the forum centre on three pillars: Future Economies and Societies, Collective Engagements and Actions, and Impactful Technologies and Innovations.