Bridging the Investment Gap for Muslim Women in the UAE
In recent years, financial experts in the UAE have observed a notable trend: many women are hesitant to engage in traditional investment avenues. This reluctance often stems from a lack of understanding or uncertainty about the complexities of investing, particularly when it comes to options that comply with Islamic or Shariah law. As the financial landscape evolves, innovative fintech startups are stepping in to address these challenges, creating pathways for women to confidently navigate the world of finance.
The Rise of Fintech Solutions
One standout initiative is Ayda Invest, a financial literacy platform designed specifically for Muslim women. Founded by Uneesa Zaman, who has a rich background in promoting ‘Halal’ finance, Ayda Invest aims to demystify financial concepts and empower women with the knowledge they need to make informed investment decisions. Originally from the UK and now based in the UAE, Zaman is set to launch Ayda Invest in the coming month, bringing a fresh perspective to financial education.
Zaman emphasizes the importance of communication in financial literacy. “We are in an era now where the ease of access to financial products is better than ever. The problem is the way it’s being communicated,” she explains. Ayda Invest seeks to bridge this gap by merging pop culture with Islamic finance, offering courses that cover both basic and advanced financial topics. A unique feature of the platform is its AI chatbot, which uses relatable language to engage users, making learning about finance more approachable.
Understanding the Knowledge Gap
Zaman highlights a critical issue: many Muslim women lack knowledge about Islamic finance, which can hinder their willingness to invest. “If a Muslim woman does not know Islamic rulings surrounding finance, she will not act,” she states. This gap in understanding is significant, as a recent report by UBS revealed that nearly half of the women surveyed in the MENA region reported low comprehension of investment-related information. However, the same report indicated a growing interest in investing, with 62% of respondents eager to learn more about available opportunities.
The Role of Digital Assets
Another player in this evolving landscape is Fasset, a UAE-based digital asset exchange platform. Co-founder Daniel Ahmed recognizes the unique challenges faced by women, particularly Muslim women, in the investment space. He notes that while there are numerous programs aimed at educating women about digital assets, the complexities of Shariah compliance add an additional layer of difficulty.
Fasset is committed to enhancing financial literacy, accessibility, and confidence among women. Ahmed explains, “Financial empowerment comes from literacy, awareness comes from access, which then increases confidence.” By focusing on these three pillars, Fasset aims to create an environment where women feel supported and encouraged to explore financial opportunities.
The Appeal of Fintech
Interestingly, the participation of women in fintech is significantly higher than in traditional finance. Ahmed attributes this trend to the inherent accessibility of financial technology platforms. “The second main thing is education and awareness, because another benefit of fintech is that they help people understand what their product is,” he adds. This user-friendly approach is crucial in attracting more women to the financial sector.
Fasset has ambitious goals for the future, aiming to have at least $100 million worth of assets owned by women on its platform by 2030. Ahmed envisions a future where women are not only participants but leaders in the digital asset space. “The beauty of crypto and digital assets is it is a decentralized component, meaning it is accessible to all,” he explains.
A Future of Equal Participation
As the fintech landscape continues to evolve, the potential for increased female participation in finance is promising. Ahmed believes that by implementing initiatives that simplify access to financial products, the gender gap in investment can be significantly reduced. “If we enable some initiatives to make it easier for women to get it, then the idea is that in five to ten years from now, the participation of people in crypto should be equal,” he asserts.
Conclusion
The intersection of fintech and financial literacy is paving the way for a new generation of financially savvy women in the UAE. With platforms like Ayda Invest and Fasset leading the charge, the future looks bright for Muslim women seeking to take control of their financial destinies. As these initiatives continue to grow, they hold the potential to transform the investment landscape, making it more inclusive and accessible for all.