Women are the next global growth opportunity

dubai - One billion women are estimated to enter the global economy in the next decade

Whether it is emerging economies or new segments, CEOs around the world are in a constant quest to find the next big opportunity. With nearly one billion women entering the global economy in the next decade, I believe that this "Third Billion" will emerge to be as powerful a driver as India and China with their billion-plus populations. By harnessing this untapped potential and addressing the female customer, companies and economies can derive dramatic and impactful social and monetary benefits.

When you look at the global environment, there have been significant trends that are driving women empowerment with a rise in women holding senior positions and corresponding higher pay scales, leading to an increase in spending power, decision-making roles in key industries and power players in politics. Outside the corporate environment too, women are making waves in academics, with majority of higher education awards being won by women. To me, the data seems to indicate that there is a need to examine the reasons why the corporate world is lagging behind when it comes to female participation when compared to other sectors.

Many governments have been working towards accelerating the rate of women joining the labour force, particularly when it comes to board representation. Norway leads the pack with a 40 per cent gender quota for female corporate board members and India too has been working towards achieving parity by requiring public companies to have a minimum of one female board member.

At Aiana Hotels & Resorts, based in Doha and listed on the Qatar Financial Centre, we benefit from a female board representation that comprises 33 per cent. As a member of several boards of listed companies, I am always conscious of my role as board member to not only meet the criteria of female representation but also be effective.  

There is also a progressive increase in the number of women joining the labour force year on year and research by the ILO, UN - DESA indicates that by 2025, there will be 150 million more women in the global labour force. In a recent report on women as the next frontier of growth, the data revealed that APAC will have the largest female workforce with millennials representing the largest proportion of female labours in 2025.

Two-fold challenge
The challenge for companies is two-fold as there is a need to address the gender equality agenda but also capitalise on the opportunity that higher disposable income and influence in spending decisions that women will have in the future.

In the hospitality industry alone, the opportunities are tremendous with female business travellers as 47 per cent of women who travel do so for business. While I am sceptical of generalisations when it comes to grooming and health, security measures to me remain the key concern when it comes to female guests. In the Middle East and India, both special assistance may be required to help female guests conform to social norms.

When it comes to entrepreneurship, female business owners are growing faster than men. In a recent web cast by Frost & Sullivan titled 'The Next Frontier of Growth: Women as a Customer', it was interesting to see the different trends in entrepreneurship, with significant growth in business owners in countries such as the US while developing countries in Africa have the largest rate of female entrepreneurs in the world. Looking at the global picture, one of the key trends seen is the rise in affluence, with women controlling 60 per cent of global wealth.

According to the Organisation for Economic Cooperation and Development (OECD) report 'Closing the Gender Gap: Act Now', if OECD countries saw full convergence of men and women from the ages of 15 to 64 in the labour force, they would benefit from an overall increase of 12 per cent in GDP over the next 15 years. Think-tanks such as Strategy& estimate that the equalising of the workforce would result in a 12 per cent increase in the UAE and 34 per cent in Egypt.

At a recent conference on women's issues held by the OECD, Angel Gurria, secretary-general of OECD, said: "Women are the most under-utilised economic asset in the world's economy."

As the world flattens and the corporate world truly becomes equitable, I look forward to the day when women not only have their rightful place in the workforce but are also recognised by companies as a force to be reckoned with as a customer representing half the global market.

- The writer is joint managing director and chief executive at Aiana Hotels & Resorts. Views expressed are her own and do not reflect the newspaper's policy.